Release date: 18 December 2024
Promoter – Financial Intermediary
ACQUA NOVARA VCO SPALocation
Description
The project concerns Acqua Novara.VCO's 2025-2030 water and wastewater investment programme, aimed at improving system resilience through interconnections of the water distribution networks, new water sources, and leakage reduction as well as optimisation of existing sewerage treatment facilities.
Additionality and Impact
The Project is aligned to the InvestEU eligible area of water infrastructure as it supports investments in water and wastewater infrastructure by a local utility providing Integrated Water Services in the Piemonte Region, Italy. It ensures compliance with key European regulations in the water sector and improves the coverage and quality of water and wastewater services. The Project contributes to the Bank's policy objectives of Sustainable Energy and Natural Resources as well as Climate Action and Environmental Sustainability.
It addresses a number of market failures through positive externalities in the form of environmental and public health benefits, notably improved resilience of water distribution systems against future droughts and reduced exposure to arsenic pollution and emerging pollutants such as PFAS. These benefits are not 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 EIB could not provide such type of financing support, or not to the same extent or at the same quantum, without support from the InvestEU guarantee.
Objectives
The aim is to continue support the promoter's investments (e.g. water and wastewater treatment plants, networks and pumping stations) in the Piedmont region.
Sector(s)
- Water, sewerage - Water supply; sewerage, waste management and remediation activities
Proposed EIB finance (Approximate amount)
EUR 150 million
Total cost (Approximate amount)
EUR 300 million
Environmental aspects
The upgrade of water and wastewater infrastructure brings positive environmental impacts. Compliance with the EU Water Framework Directive (2000/60/EC), Urban Wastewater Treatment Directive (91/271/EEC) and EU and national environmental legislation, notably under the environmental impact assessment (EIA) Directive 2011/92/EU (amended by the Directive 2014/52/EU), Birds Directive (2009/147/EC) and Habitats Directive (92/43/EEC) will be verified during appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate adaptation and sustainable use and protection of water and marine resources. This project also brings substantial health advantages and environmental quality improvements to the affected population, thereby increasing the quality of life in the project area. Social negative impacts are only temporary (e.g. occupation of public and private space, safety hazards during construction, traffic, noise) and will be addressed as part of the planning for the implementation of each scheme. As per social matters, the promoter will also be requested to comply with the relevant applicable legislation.
Procurement
The promoter has to ensure that contracts for the implementation of the project have been or will be tendered in accordance with the relevant applicable EU procurement legislation, Directives 2014/23/EU and/or 2014/24/EU and/or 2014/25/EU where applicable, as well as Directive 92/13/EEC and Directive 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.
Status
Signed - 28/05/2025