Note 20 Contingent assets and liabilities
Rights and obligations arising from leases
Please refer to note  to the consolidated financial statements for details of rights and obligations arising from leases.
The outstanding investment commitments and other purchasing commitments at the end of the year were as follows:
Investment and purchasing commitments
Capital expenditure commitments regarding property, plant and equipment
Other purchasing commitments
Total as at 31 December
On and immediately after the balance sheet date, a number of claims were made against Alliander. Alliander was also involved in a number of lawsuits at the balance sheet date, connected with normal business operations. These claims/lawsuits could have a material impact on Alliander’s results, should the outcome not go in Alliander’s favour. Provisions have been recognised as necessary. A number of important considerations are disclosed below.
Liander is involved in legal disputes with a number of municipal authorities relating to sufferance tax. Liander could potentially be reclaiming an amount of €1 million. However, given the uncertainties, these receivables have not been recognised in the balance sheet as at 31 December 2019.
As at year-end 2019, Alliander had issued parent company guarantees amounting to €33 million (2018: €34 million), including a parent company guarantee of €5.1 million (2018: €5.2 million) for non-controlling interests. Bank guarantees amounting to €0.9 million had been issued on Alliander’s behalf as at year-end 2019 (2018: €0.6 million). As at year-end 2018, Alliander had issued guarantees totalling €27 million to the subsidiary Allego B.V. that was sold off in 2018. Under the terms of the sale and purchase agreement, Alliander is indemnified by the purchaser Meridiam in the event that these guarantees are invoked. In 2019, nearly all of these guarantees were taken over by Meridiam; as at year-end 2019, there was an amount of €0.1 million outstanding.
With respect to the Spaklerweg disposal, it has been agreed that the city authorities will have an option expiring on 30 June 2020 to acquire part of the site and the buildings for the sum of €13 million (to be paid in instalments of €6 million in 2025 and €7 million in 2028). If the option is exercised, conveyance of the property will take place in 2025 and Alliander will continue to have the use of the site until that date. The exercise of the option by the City of Amsterdam at some future date is not expected to affect profit or loss.
Alliander has taken out liability insurance in the form of a Directors and Officers policy covering the members of the Supervisory Board, the members of the Management Board, the operating company managers and other directors within the Alliander group. In addition to the cover provided by this liability insurance, the members of the Supervisory Board are also legally indemnified. As far as possible, the members of the Supervisory Board are also indemnified by Alliander subject to specific conditions and with strict limitations in respect of costs connected with legal proceedings brought under civil, penal or administrative law in which they could become involved by virtue of their membership of the Supervisory Board.
Alliander, together with its Dutch subsidiaries, forms a tax group for both corporate income tax and value added tax (VAT). Consequently, every legal entity forming part of the tax group bears joint and several liability for the tax liabilities of the legal entities included in the tax group. Alliander has also given a declaration of indemnity to network operator Liander under which its liability in this respect is restricted to the amount for which it itself would be liable if a tax group did not exist.
Convertible subordinated loans were contracted with the shareholders of Alliander in the past and relate to guarantees given on the sale of non-strategic interests. On expiry of these guarantees, the loans were released to income and shares in Alliander were issued in 2006. A number of guarantees are, however, for an indefinite period; in the event that there are any subsequent claims on guarantees in the future, the shareholders concerned have a duty to surrender all or part of their shares.
In 2006, following the declaration of the nullity of a claim, a guarantee provision for the sale of associates was released to income and additional shares in Alliander were issued in 2007. The guarantees which have been given are for an indefinite period. It is therefore still possible for claims to be made on these guarantees in the future. Alliander can again also require the shareholders to surrender some or all of their shares.