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European Union

European Investment Bank Approves €200 Million Loan to Support Modernization of Water Infrastructure in Turin

Strategic Insights

— 2 min read

The European Investment Bank (EIB) has approved a €200 million loan to Società Metropolitana Acque Torino S.p.A (SMAT) to support its investment program for the three-year period spanning 2025 to 2027. The loan will help strengthen and modernize water and sewerage infrastructure in the province of Turin, contributing to substantial improvements in the quality and efficiency of the services available. This marks the sixth operation between the EIB and SMAT, with the overall total standing at €760 million.

Key Takeaways:

  • The EIB loan of €200 million will be used to support SMAT's investment program for the period 2025-2027, focusing on the modernization of water and sewerage infrastructure in the province of Turin.
  • The project covers the extension and renewal of water supply networks, upgrades to reservoirs and installations applying cutting-edge technologies, and expansion and maintenance work on sewerage networks and wastewater treatment plants.
  • An innovative aspect of the investment program concerns advanced remote control systems, which will make it possible to optimize infrastructure management and maintenance, increasing operational efficiency and improving the resilience of water services.
  • The project is expected to deliver long-term benefits for people and businesses, helping to cut water losses and improve the resilience of water services to future extreme weather events.
  • The EIB's loan will contribute to significant improvements in the quality and efficiency of the services available, aligning with the European Union's environmental and sustainability goals.
  • SMAT is the sixth operation between the EIB and SMAT, with the overall total standing at €760 million, demonstrating a shared commitment to quality, sustainability, and innovation in water resource management in the Turin area.
  • Italy has received more EIB funding for the water sector than any other country, with operations financed since 1958 totaling €86 billion, and investments worth over €1.77 billion in the last ten years.
  • The EIB's €200 million loan will add to the €45 million loan for BrianzAcque, €150 million for Acqua Novara.VCO, €30 million for Azienda Comprensoriale Acquedottistica S.p.A, and €340 million for ACEA, further supporting the modernization of water infrastructure in Italy.

Statistics:

  • €760 million: The overall total of EIB investment in SMAT, marking the sixth operation between the two parties.
  • €200 million: The amount of the EIB loan to support SMAT's investment program for 2025-2027.
  • €100 million: The first tranche of the loan signed in Rome, which is part of the overall €200 million loan.
  • €4.3 billion: The total amount of EIB funding for the water sector in Italy over the last ten years.
  • €86 billion: The total amount of EIB financing provided to the water sector since 1958.
  • €26.2 billion: The EU budget guarantee for the InvestEU Fund.
  • €372 billion: The minimum amount of additional investment that the EU budget guarantee will mobilize through the InvestEU Fund.
  • 293 municipalities: The number of municipalities in the Turin metropolitan area that SMAT serves.
  • 2.2 million residents: The number of residents SMAT provides drinking water supply, sewerage, and wastewater treatment services to.

Sources:

  • European Investment Bank (EIB)
  • SMAT (Società Metropolitana Acque Torino S.p.A)
  • ElB (The European Investment Bank's press release dated October 17)

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