Release date: 19 March 2025
Promoter – Financial Intermediary
ACCEPTABLE CORPORATE(S)Location
Description
The operation will finance utilities in Italy under a Lending Envelope. Sectors include waterworks (water and wastewater), electricity distribution, district heating, energy efficiency measures (including public lighting), renewable energy generation and waste collection/ treatment facilities.
Additionality and Impact
The Lending Envelope is inline with the InvestEU objectives of Energy and Environment. It will support investments in the water, solid waste and energy sectors in Italy. Italian utilities face pressing investment needs and restricted access to long-term finance. The Lending Envelope will ensure compliance with key European policy and regulations in the fields of energy and environmental protection, thereby contributing to the Bank's policy objectives of Sustainable Energy and Natural Resources as well as Climate Action and Environmental Sustainability and avoid negative externalities related to emissions of greenhouse gases and local air and water pollutants, protection of water resources and increased resilience to climate change impacts. The Lending Envelope will address a number of market failures in the three sectors. More specifically, investments are expected to generate positive externalities in the form of improved public health and environmental benefits (e.g. from reduced pollution of water bodies, a more rational use of water resources, increased recycling and reduced disposal of solid waste, recovery of both material and energy from residual waste, reduced emissions of greenhouse gases and local air pollutants), and to contribute towards increasing security of energy supply, which is considered a public good. The investments in the energy sector shall also contribute to the long-term climate and energy goals of Italy and the EU. While the degree of correction of market failures will vary by sector and project, the Lending Envelope is therefore expected to make a substantial contribution towards addressing environmental externalities, and provide key funding to accelerate infrastructure investments critical for decarbonisation. A share of the investments (yet to be determined albeit expected to be limited) will be located in cohesion regions.
The EIB loans will improve the financial viability of the investments by offering essential support. They will secure favorable funding conditions in terms of cost and duration, broaden the Borrowers' funding sources, and may attract additional co-lenders to the Sub-Projects.
The EIB financing will extend the average maturity of the companies' debt. It will also offer the necessary flexibility for project execution, especially concerning drawdowns and the availability period.
The Lending Envelope would not have been carried out (to the same extent) by the EIB without the InvestEU support.
Objectives
The aim is to address the investment needs of small and medium-large sized utilities operating in the water, energy and solid waste sector, throughout Italy. In particular, the following investments are expected to be financed under the Lending Envelope: (i) electricity and water distribution networks; (ii) wastewater collection and wastewater treatment schemes; (iii) waste collection, recycling, treatment and disposal facilities; (iv) energy generation plants; and, (v) energy efficiency measures.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
- Water, sewerage - Water supply; sewerage, waste management and remediation activities
- Solid waste - Water supply; sewerage, waste management and remediation activities
- Industry - Construction
Proposed EIB finance (Approximate amount)
EUR 1000 million
Total cost (Approximate amount)
EUR 2000 million
Environmental aspects
The investments in water, wastewater and waste are expected to have net positive environmental, considering their focus on compliance with amongst others the Water Framework Directive 2000/60/EC, the Urban Wastewater Treatment Directive and the EU Circular Economy Package 2015, and their contribution to resource efficiency from recycling. Where and if applicable, the requirements of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EU, the Habitats and Birds Directives (92/43/EEC and 2009/147/EC, respectively) will be verified and the EIB will publish the EIAs on its website. The energy efficiency sub-projects will be implemented in compliance with the Energy Performance in Buildings Directive (EPBD) 2024/1275/EU, amending 2010/31/EU. The sub-projects will reduce the energy consumption of buildings and the associated pollutant emission.
Procurement
The promoter has to ensure that contracts for the implementation of the sub-operations will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/23/EU, 2014/24/EU and 2014/25/EU, where applicable as well as Directive 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. Information on awarded main suppliers/contractors for the implementation of the envisaged operation is not available.
Status
Approved - 19/06/2025