ACEA SETTORE IDRICO IV

The operation will finance the promoter's investments in integrated water services in the territory of ATO 2, centre of Lazio region, in the period 2023-2026. In detail, investments concern the upgrade of water and wastewater infrastructure (water and wastewater treatment plants, networks, pumping stations).

The purpose is to contribute to meet the customer service standards set in the operating service agreement and the Key Performance Indicators set by the regulator ARERA. The related investments also aim at complying with all environmental requirements set by the national and EU legislation, notably the Drinking Water Directive 98/83/EC, the EU Urban Wastewater Treatment Directive 91/271/EC (UWWTD), as amended by 98/15/EC, as well as the Water Framework Directive (2000/60/EC).

The Project will support investments in water and wastewater infrastructure in Lazio Region, Italy. In doing so, it will ensure compliance with key European regulations in the water sector, and improve the quality and resilience of water and wastewater services. The Project will contribute to the Bank's policy objectives of Sustainable Energy and Natural Resources as well as Climate Action and Environmental Sustainability. The Project will address a number of market failures, including those associated with public goods, unaccounted for externalities and information failures, generating positive health and environmental benefits. The Project will also contribute to improving the efficiency of the potable water supply system while increasing its resilience against climate related risks. These benefits are not reflected in market prices and would not be realised to the same extent without public intervention.

The EIB support will bring a tangible financial value added by lowering the Project's cost of funding and offering a tenor longer than the one normally proposed by other financers. Considering the magnitude of the Project, the EIB support will also contribute to accelerate its implementation.

The value added provided by the EIB is even more tangible under the current market conditions, perturbed by the Russia-Ukraine conflict.

Investments will bring positive environmental impacts. Compliance with the EU Water Framework Directive (2000/60/EC), Urban Waste Water Treatment Directive (91/271/EEC) and EU and national environmental legislation, notably under Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by the Directive 2014/52/EU). Compliance with the Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC) will be further verified during appraisal. The project is expected to contribute to climate action and environmental sustainability objectives, in particular to climate adaptation and sustainable use and protection of water and marine resources.

The EIB will require the promoter 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, in particular: Directive 2014/23/EU, and/or 2014/24/EU, and/or 2014/25/EU, as well as Directive 92/13/EEC and Directive 89/665/EEC, as interpreted by the EU Court of Justice, with publication of tender notices in the EU Official Journal, as and where required.