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A report, developed in collaboration with Cdp, provides a comprehensive analysis of the sector, focusing on the state of infrastructure, investments, and the financing instruments available for industry
The Italian water sector is in great need of investments, totaling about 5 billion euros a year, said the Blue Book 2017 report, presented in Rome at a conference sponsored by Utitalia, the Italian association of water, energy and waste management utilities.
The report, written in collaboration between Cdp Research & Studies department and Utitalia, represents the most comprehensive picture of the integrated water sector in Italy. Cdp’s primary role in the study was the analysis of existing instruments to support infrastructure investment projects, as well as for the selection of critical issues that still characterize the sector and severely limit the support of the private financing.
Italy’s aqueducts are showing their age. Sixty percent of the infrastructure is more than 30 years old with a significant geographic divide. While the water loss rate of water networks in Italy’s north averages 25%, it jumps to 46% and 45% in the central and southern parts of the country respectively, according to the report.
In the face of widely needed upgrades and maintenance, tariffs fail to meet funding needs. In the 2014.2017 regulatory period, investments totaling only 32 euros per resident is expected for Italy’s water utilities, far below the 80 euros needed to meet the estimated 5 billion euros a year to improve system.
Cdp’s contribution to the report was discussed by Simona Camerano, head of the Cdp Research & Studies department. The Italian Authority for Electricity, Gas and Water Service (Aeegsi) also participated in the event’s debate.