EIB Grants €35 Million to Enhance Water Services in Umbria Under InvestEU Program

(IN BRIEF) The European Investment Bank (EIB) has partnered with Valle Umbra Servizi to enhance water service resilience and efficiency across 22 municipalities in Perugia, Italy, with a €35 million green loan under the InvestEU program. This initiative marks the first investment in Umbria supported by InvestEU, aiming to boost Europe’s investment over €372 billion by 2027. The project will include connecting water distribution systems, constructing new wells, expanding sewer networks, and upgrading wastewater treatment facilities to reduce water loss and increase service sustainability. Additionally, the EIB will provide Valle Umbra Servizi with technical assistance to develop a decarbonisation plan aligned with global climate goals. This collaboration not only highlights EIB’s significant role in financing the Italian water sector, where Italy has received the most EIB funding in the past five years but also supports Valle Umbra Servizi’s growth and environmental sustainability objectives.

(PRESS RELEASE) LUXEMBOURG, 7-May-2024 — /EuropaWire/ — The European Investment Bank (EIB) and Valle Umbra Servizi have signed a €35 million agreement to boost water service resilience and efficiency in 22 municipalities of the province of Perugia.

The EIB green loan (a label used for loans used exclusively for projects fully contributing to the Bank’s climate action and environmental sustainability goals) will be used to implement a series of targeted operations, including the connection of distribution systems, the construction of new wells to increase water supply, the expansion of the sewerage network and improvements to wastewater treatment processes. These operations will help to cut water losses and improve the quality, efficiency and overall sustainability of the services offered in the region.

This project is also a key milestone for Umbria, as it is the first in the region to be supported by InvestEU, the European Commission programme aiming to unlock investment of more than €372 billion in Europe by 2027. The EIB Group’s commitment to Italy under InvestEU has already had a major economic impact on the country, with total financing of around €2.7 billion.

The EIB is also set to provide free technical assistance to Valle Umbra Servizi under a previous InvestEU Advisory Hub agreement. The aim is to develop a daecarbonisation plan in line with international climate change goals.

“The goal of the EIB operation is to optimise water use, improve water service quality and ensure security of supply,” said EIB Vice-President Gelsomina Vigliotti. “This consolidates our role as one of the largest financiers of the Italian water sector, while our advisory services are helping to bring InvestEU resources to Umbria for the first time.”

“The EIB support is a tangible confirmation of the company’s growth path,” commented Eng. Vincenzo Rossi, President of Valle Umbra Servizi. “The project will generate positive economic and environmental externalities as it contributes to improve services for the entire territory served. I extend my sincere thanks to all those who collaborate daily in the development of a shared corporate vision.”

Italy receives more EIB resources for the water sector than any other country

With over 1 600 projects and around €80 billion in financing provided since 1958, the EIB is one of the world’s leading lenders to the water sector. In the last five years, Italy has received more EIB resources for the water sector than anywhere else, seeing 40 operations financed for a total of €3.75 billion. This loan to Valle Umbra Servizi is the first it has received from the EIB, and comes in addition to those recently signed with Acquedotto Pugliese (€270 million), Como Acqua (€50 million), Hera Group (€460 million), ACEA (€435 million), Acque (€130 million), CIIP (€50 million) and Iren (€150 million).

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investments that can contribute to EU policy. EIB projects strengthen competitiveness, foster innovation, promote sustainable development and improve social and territorial cohesion while supporting a fair and rapid transition towards climate neutrality. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Valle Umbra Servizi group is an integrated multi-utility company, entirely publicly owned, that provides services in the 22 municipalities included in Sub-Area 3 of Umbria, located in Foligno, Spoleto and Valnerina districts. Valle Umbra Servizi S.p.A. manages the Integrated Water Service (collection, adduction and distribution of drinking water for civil use, sewerage and wastewater purification) and the Urban Hygiene Service (collection, transportation, disposal of waste and street sweeping)

Media Contact:

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SOURCE: European Investment Bank