ACQUE WATER INVESTMENTS

The project concerns investments into water and wastewater infrastructure located in the Tuscany Region, notably in the Provinces of Firenze, Lucca, Pisa, Pistoia and Siena.

The related investments - included in the business plan 2022-2025 - aim at rehabilitating, expanding and/or optimising: - Water mains, distribution networks and replacement of water meters - Sewer networks - Wastewater treatment plants - Other: SIG system, management software, remote control update

The project will support investments in water and wastewater infrastructure in the Tuscany Region in Italy.

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 horizontally to 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, which would not be realised to the same extent without public intervention. 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.

EIB intervention will allow the Borrower to lengthen the tenor of its debt and to contain the cost of funding, attracting other potential lenders.

The the rehabilitation and strengthening of the water supply infrastructure (aqueduct), as well as the update and development of the waste water infrastructure (sewerage and purification), are in line with the EIB's Environmental Sustainability criteria and Climate Action. The Promoter undertakes not to allocate EIB funds to project schemes that require a full Environmental Impact Assessment (EIA) until the EIA and/or the necessary nature assessment have been finalised and approved by the relevant competent authority. Once any EIA is available, the Promoter will provide an electronic copy of its Non-Technical Summary (NTS) and full copy of the EIA, for publication on the EIB website. The Promoter shall not commit any EIB funds against any scheme that impacts nature conservation sites, without receiving from the relevant competent authorities the declaration under Art. 6(3) of the Habitats Directive that there are no significant effects and informing the Bank of such declaration having been obtained. Additionally, the Promoter undertakes to provide EIB, if requested, any decision and subsequent justification that screen out project schemes from the requirement of a full EIA as well as the decisions issued by the competent authorities regarding the Habitats and Birds Directives.

The Promoter is a contracting authority falling under the provisions of the EU Public Procurement Directives. As such, they will be required to tender the contracts in accordance with the relevant applicable EU procurement legislation (Directives 2014/23/EU, 2014/24/EU and 2014/25/EU and Directives 89/665/EEC and 92/13/EEC), where applicable as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the European Unionq , as and where required, as transposed into Italian legislation. Under these conditions, the procurement procedures to be followed by the Promoter are suitable for the project and satisfactory to the EIB.

The Investment Plan will enable ACQUE to improve Non Revenue Water from 37% to 33% and extend the wastewater treatment capacity in 75 000 eq. pop.