The European Investment Bank (EIB) and Cassa depositi e prestiti (CDP) today signed in Rome a contract to finance the four-year plan of Terna, the Italian electricity network manager. Under the agreement, the EIB will make financial resources of up to EUR 500m available to CDP for the electricity group’s 2008-2011 investment programme. This operation rounds out the CDP loan to Terna that was announced in advance on 2 February.

The EIB was represented by Dario Scannapieco, the Vice-President responsible for financing operations in Italy, Malta and the western Balkans, and CDP by its CEO and Managing Director, Massimo Varazzani.

The loan is in line with the EIB’s priorities in the energy sector in three ways:

  • the investments under the plan will be aimed at improving the overall level of efficiency of Terna’s transmission grid;
  • the plan will include the laying of the 380 kV power cable between Sicily and Calabria (Sorgente-Rizziconi line), classified as a Trans-European network (TEN) and located in an EU Convergence Objective region;
  • the plan is of prime importance during the current recession owing to the positive impact that it can have in terms of jobs in the electricity sector in Italy.

The operation is a major step forward in cementing relations between the EIB and CDP at a time when both institutions are committed to mitigating the effects of the international crisis, in particular by identifying new fields of activity and seeking operational synergies. In March, a similar loan amounting to EUR 1bn was granted with Enel as the final beneficiary.

For CDP, this is an operation that forms part of its day-to-day management activities, namely the market-based financing of works, installations, grids and equipment intended to supply public services.

Note:

EIB

The European Investment Bank supports the political and strategic objectives of the European Union by granting long-term loans for economically sound investment projects. The EIB’s shareholders are the 27 EU Member States. Italy is one of the four leading shareholders, along with the United Kingdom, Germany and France, each holding a 16.2% stake in the Bank. At end-2008, the EIB’s total financing amounted to EUR 355bn, of which EUR 45bn went to Italy.

CDP

Cassa depositi e prestiti is a joint-stock company owned by the Italian Government (70%) and a group of banking institutions (30%) that has a long history, stretching back nearly 160 years. Its remit is to promote national development. CDP finances public investment, infrastructure projects to supply local public services and major works of national importance.