ACQUE VERONESI WATER INFRA UPGRADE II

The project will finance part of the Promoter's investment programme in water supply, wastewater and stormwater management infrastructure during the period 2025 - 2029.

The aim is to support the Promoter's in providing integrated water services in 77 municipalities in the Province of Verona (Veneto Region). In particular, the project consists of numerous small to medium size investments to reduce water losses, increase water security, reduce flooding and protect the environment.

The Project supports investments in water and wastewater infrastructure by a local utility providing Integrated Water Services in the Veneto Region, Italy. It ensures compliance with key European regulations in the water sector, and improves the reliability and quality of water and wastewater services, by improving interconnection of existing networks, reducing network losses, investing in digitalisation and smart metering. The Project contributes to the Bank's policy objectives of Sustainable Energy and Natural Resources as well as Climate Action and Environmental Sustainability, and is aligned with the Bank's Water Resilience Programme. It addresses a number of market failures through positive externalities in the form of environmental and public health benefits, notably reduced risk of pollution incidents from sewerage overflows and improved quality of recipient waters, along with enhanced flood protection in the service area. These benefits are not entirely reflected in water tariffs and would not be realised to the same extent without public intervention.

Furthermore, the Project addresses a chronic investment gap in water services in Italy and provides long-term finance at attractive terms compared to commercial banking funding. EIB's participation as an anchor investor facilitates the crowding-in of other investors and positively impacts the utility stability and diversification of financing.

The environmental impact of the underlying investment components is minimal, with the principal effects occurring predominantly during the construction phase (noise, dust, traffic etc) and not normally requiring a full environmental and impact assessment (EIA). At this stage, none of the investments are expected to require a full Environmental Impact Assessment (EIA) under Directive 2014/52/EC amending Directive 2011/92/EC. The Project will not have an impact on Natura 2000 or other protected areas. The Promoter is required to comply with all relevant national and European legislation. Overall, the project is expected to bring substantial environmental quality improvements, notably in terms of higher ecological quality of surface and groundwater resources, as well as a more rational use of water resources and reinforcement of adaptation to extreme weather events, thereby increasing the resilience to potential effects of climate change.

The Promoter shall ensure that contracts for the implementation of the Project will be tendered in accordance with the applicable EU procurement legislation Directives 2014/23/EU, 2014/24/EU or 2014/25/EU, where applicable, as well as Directives 92/13/EEC and 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.