ETRA WATER & CIRCULAR ECONOMY

The project, part of ETRA's 2023-2027 investment programme, concerns the implementation of different schemes of circular economy and solid waste, as well as water sector.

The project concerns the implementation of different schemes of the Circular Economy (CE)/Solid Waste (SW), and the water sector. The CE/SW project components include the acquisition of collection equipment (underground containers, semi-trailers, compactors, bio-methane powered trucks, etc.). It also consists of the upgrading of the Anaerobic Digestion (AD) plant located in Bassano del Grappa into biomethane; the construction of two new composting lines into the actual AD plant located in Camposampiero; the revamping of a paper recycling unit in Campodarsego; the retrofitting of a composting unit in Bassano del Grappa and another composting plant in Camposampiero; the upgrading of an existing plastic sorting plant. Moreover, it comprises also the construction of four new sorting stations dedicated to recycling material. Finally, the CE/SW project component comprises the upgrading of the gas and leachate treatment system of a closed landfill. As far as the water sector component is concerned, it consists of the maintenance of tanks and the revamping of 158 km of drinking water infrastructure. It comprises also the revamping of the "centrale di Oliero". Finally, this component includes the construction of new conveyance/water networks and the upgrading filtration system.

The Project is in line with the InvestEU objective of Environment.

By strengthening the recycling rate and increasing the renewable energy ratio in the Veneto region, the Project aligns with the European Union's legal requirements, Circular Economy Action Plan, and the Green Deal.

In addition, it supports the supply and processing of raw materials, space, oceans, water, including inland waterways, waste management in line with the waste hierarchy and the circular economy; nature and other environment infrastructure. The circular value recovery contribution of the Project, as defined in the European Commission's Categorisation system for the circular economy, makes it, alongside with other criteria, eligible for an InvestEU guarantee. 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 also contribute to improving the efficiency of the potable water supply system while increasing its resilience against climate related risks.

The Project will address a sub-optimal investment situation in water and waste infrastructure in the Veneto Region in Italy. In doing so, it will ensure compliance with key European regulations in the water sector and improve the quality and resilience of water services.

The Project will address several 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 addresses a few additional market failures by reducing greenhouse gases; by protecting the environment, public health, and saving energy as well as costs related to environmental protection. With this Project, the EIB financing will help to reduce negative externalities while strengthening the positive externalities for the targeted regions. The EIB long-term financing will be addressing a market failure in relation to the provision of finance in the size and tenors needed to carry out the investment backlog of Projects to provide water and solid waste-essential services at affordable prices for the population.

The Bank's support acknowledges the positive externalities of recycling and leverages much needed public backing, including an InvestEU guarantee, for a circular - sustainable infrastructure - public sector undertaking.

The EIB loan will provide key support, ensuring optimal funding conditions in terms of cost and tenor, diversifying the borrower's funding base and potentially attracting other co-lenders to the Project.

Given the counterpart's relatively small size and low capital levels, the EIB would not be able to provide financing support, to the same extent without InvestEU. The guarantee substantially enhances the EIB contribution in terms of loan amount, tenor, and risk structure (unsecured).

The project is in line with the main European Directives on environmental protection. As regards the solid waste component, the project complies strictly with the hierarchy of waste management methods defined in the European Economy Package, in particular the Landfill Directive 2018/850 (Directive 1999/31/EC as amended); the Waste Framework Directive 2018/851 (Directive 2008/98/EC as amended). With respect to the water component, the project is fully in line with the Directive 2000/60/EC (Water Framework Directive). The Promoter will be required to act in accordance with the provisions of the relevant EU Directives, including the EIA (2014/52/EC amending Directive 2011/92/EU), Habitats (92/43/EEC) and Birds (2009/147/EC) Directives.

The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the applicable EU procurement legislation Directives 2014/23/EU, 2014/24/EU or 2014/25/EU, where applicable, as well as Directives 92/13/EEC and 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.