15. Contingent Liabilities and Contingent Assets
The consolidated entity has arranged for the issuance of a bank guarantee in favour of Return to Work Corporation of South Australia for the purpose of self insurance under the Return to Work Regulations 2015, a bank guarantee in favour of the Department of Defence for the purpose of a performance security deed for the Training School contract, a bank guarantee in favour of Westim Pty Ltd for the Bibra Lake warehouse lease and a bank guarantee in favour of Defence Projects Pty Ltd for the AWD Systems Centre lease. The total value of the bank guarantees arranged by the consolidated entity is $6.2m (2019: $9.2m). No liability has been recognised by the consolidated entity in relation to these guarantees as the fair value of the guarantees as at 30 June 2020 and 30 June 2019 is immaterial.
In addition to the above, the consolidated entity has provided guarantees and indemnities for the following:
- To Australian Naval Infrastructure Pty Ltd in relation to ASC AWD Shipbuilder Pty Ltd's obligation to Australian Naval Infrastructure Pty Ltd in connection with the CUF;
- To Bath Iron Works Australia Corporation in relation to ASC AWD Shipbuilder Pty Ltd's obligations to Bath Iron Works Australia Corporation in connection with the strategic capability service agreements; and
- To the CoA in relation to ASC AWD Shipbuilder Pty Ltd's obligations to the CoA in connection with the Hobart Class AWD program.
No losses are expected in relation to these guarantee arrangements.