Article 3
The measures which Spain proposes to implement under the arrangements for privatising Babcock Wilcox España SA, consisting of: (a) cash injections into NewCo amounting to EUR 55 million; (b) the payment to NewCo of EUR 100 million for the costs of adapting the activities transferred to it; (c) the payment to NewCo of EUR 95 million for investments and training to be carried out according to the Investment Plan presented by Babcock Borsig; (d) the coverage of any ultimate loss under contracts transferred to NewCo, at an estimated cost of ESP 8000 million (EUR 48,1 million); (e) the coverage up to a maximum of EUR 18 million of any cost incurred through claims against NewCo for any harm or economic damage resulting from events occurring prior to the sale in relation to environmental, labour, tax and social security issues and obligations arising from pension plans, and (f) the coverage of the deficit in the liquidation of Babcock Wilcox España SA, at an estimated cost of ESP 35000 million (EUR 210,4 million), constitute aid within the meaning of Article 87(1) of the Treaty. The aid measures under points (a), (d), (e) and (f), the aid measure under point (b) up to the limit of the effective negative cash flows actually recorded by NewCo during the first three years of operations, and the aid measure under point (c) up to a maximum amount of EUR 73,56 million meet the conditions for exemption under Article 87(3)(c) of the Treaty, as set out in the Community guidelines on State aid for rescuing and restructuring firms in difficulty, and are therefore compatible with the common market.