Italy

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See GWI Italy country profile

 


Economics (2007)

 

GDP per capita

USD333,540

GDP per capita (PPP)

USD29,900

Agriculture (2005)

2%

Industry (2005)

27%

Services (2005)

71%

 

Water quality

 

According to the 1991-93 survey of the 13 main rivers from a total of 156 survey sites taken from the national network of the National Information System on the Environment (SINA), river quality in Italy is as follows:

 

I-II: Good – Fair

50%

III: Polluted

32%

IV: Very Polluted

9%

V: Heavily Polluted

9%

           

The Rivers Po, Tiber, Adige and Arno account for 40% of Italy’s fresh water resources, with their basins covering 35% of the surface area and 45% of the population. These four rivers are all of poor or bad quality. The water quality in natural and man-made lakes is generally poor. This phenomenon is particularly evident in Sardinia, where 40% of the capacity is subject to frequent algal blooms, and Sicily, where 51% of the waters are considered to be suffering from some degree of eutrophication. The population equivalent generated by residents, commercial and industrial users and tourists is of 99million people. 70% of the overall pollution load is subject to treatment. 80% of the industrial effluent generation is concentrated in the Paduan basin.

 

Groundwater problems are mainly caused by the intensive use of herbicides and fertilisers. Problems remain in different areas of the country with regards to the presence of nitrates in drinking water, saline intrusions into underground coastal aquifers and the problem of the presence of organic synthetic compounds such as organic chlorinates. Excess levels of nitrates in drinking water are a particular problem in Tuscany, the Marches and Campania, significantly affecting water supplies for 0.67million people. Saline intrusion into coastal aquifers in Romagna, Puglia and Sicily is also of concern. Organic compounds are at a high level in the Po Valley, Brescia, Vicenza, Padua and La Specia.

 

Algal blooms continue to be a problem in the Upper Adriatic Sea due to the discharge of untreated effluents mainly into the river Po. According to official returns, most of the beaches meet guideline as well as mandatory standards.

 

Population

 

Total (2005, million)

58.6

Total (2015, million)

58.0

In urban areas (2005)

68%

In urban areas (2015)

69%

In urban agglomerations (2015)

21%

 

Infrastructure and service provision

 

National gross water supply

                                     

 

Billion m³

Per capita

1961

5.2

297L/day

1975

5.8

324L/day

1998

6.8

352L/day

2015

10.6

548L/day

 

There was an average abstraction of 324L per day in 1975, with an average water supply of 174L per day to domestic users. Urban areas have a higher than average usage: Rome; 243L per day, Milan; 300L per day and Turin; 310L per day. Access to sewerage rose from 30% in 1980 to 62% in 1987 and 80% by 1995. The proportion of domestic sewage subject to treatment was 14% in 1971, rising to 30% in 1980, 45% in 1987 and 62% by 1995. According to Veolia Environnement (VE) in 1995, some 35% of sewage treatment works were working below par or were in fact not in operation.

 

Sewage treatment development

 

Year

1970

1995

1999

2005

Tertiary

0%

5%

24%

84%

Secondary

6%

34%

36%

10%

Primary

8%

17%

3%

0%

 

According to Eurostat, the connection rate rose from 14% in 1970 to 30% in 1980 and 61% in 1990. 

 

% of population connected to wastewater treatment plants, 1999

Rome

78%

Milan

0%

Naples

38%

Turin

96%

Palermo

19%

Genoa

56%

Bologna

99%

Florence

12%

Brescia

80%

Modena

85%

Parma

69%

 

A survey by Itstat in 2004 found that 1,165 of Italy’s 7,988 Comuni still have no sewage treatment works, with 112 of these lacking a sewerage system. Only one of the six cities with a population over 0.5million has an effective sewage treatment while in 2009, there were some 500 communes lacking secondary or tertiary sewage treatment. The table below is for planned wastewater spending by the ATOs for the rest of their concession lives from 2009.

 

Planned investment in wastewater treatment (EURmillion)

 

Region

Total

New build

Upgrading

Piemonte

1,280

55%

45%

Lombardia

11,360

38%

62%

Liguria

334

-

-

Veneto

2,270

46%

54%

Emilia Romagna

307

56%

44%

Toscana

827

-

-

Umbria

219

90%

10%

Marche

26

-

-

Lazio

1,850

44%

56%

Abruzzo

20

52%

48%

Molise

18

74%

26%

Campania

1,690

51%

49%

Puglia

1,620

46%

54%

Basilicata

10

26%

74%

Calabria

1,120

40%

60%

Sicilia

3,020

37%

63%

 

Source: Utilitatis, in ‘Italy’s wastewater nightmare’, GWI, July 2009

 

Regional water scarcity

 

25% of the overall population has inadequate water resources.  While in the north of Italy, 8.5% of the population does not have sufficient amounts of water, this rises to 18% in central Italy, 55% on the islands, and 78% in the south. These areas are considered to be under the threat of supply disruptions in drought years. Therefore, the Italian Parliament is currently examining a law proposing the reorganisation of the National Water Network with special emphasis on supplying the southern parts of Italy. In total, 9.161million people are in areas of regular water stress. In 1995, 55% of people in Sardinia faced occasional water shortages.

 

Urban Services

% Water

98%

L per cap per day

300

% Sewerage

90%

% Sewage treated

85%

 

Structure of the water market

 

Water supply in Italy is managed by a total of 8,075 municipal administrations, which work either individually or in association with other municipalities. Exceptions are three public utilities (Apulian, Sicilian and Sardinian), which operate large facilities for the abstraction and distribution of water. According to the figures of the association of Italian public water and gas utilities, 55% of the water is supplied by 184 municipal or co-operative waterworks and the remaining 45% is in the hands of 5,896 different public bodies.

 

Water and sewerage entities, 2002

 

Water supply

5,500

Water distribution

6,200

Sewerage

7,000

Sewage treatment

2,000

 

Italy’s 300 state held municipal service entities have an estimated total value of ITL50,000billion. These assets are mainly in water, sewerage, gas and energy services. A quasi-market for these activities has been developing in recent years because of the need for credit ratings to raise new debt issues. At the same time, for water and wastewater services, there has been increased political pressure to keep prices down in recent years.

 

Freshwater

Total (1998, km3)

159.4

Per capita (2000, m3)

3,336

Withdrawals (2000, km3)

44.4

For domestic use (2000)

18%

For industry (2000)

37%

For agriculture (2000)

45%

 

The 1994 Galli Law

 

The Galli Law is designed to address the inadequacies of the current operational structure in Italy when faced with a EUR25billion ten year bill for basic EU compliance work. The law seeks to rationalise various water entities into 91 more manageable entities, with the aim of these then combining water provision and sewerage. One of the central elements for attaining this is to allow the former municipal water utilities to expand their services into other regions of Italy. The Galli Law started to make an impact in 1999, when the first direct concession award (Arezzo by Suez and Amga) took place. A secondary driver has been the opening up of gas and electricity markets to competition, eliminating the scope for cross-subsidies between these activities and water and sewerage services.

 

Market structure

1995

2000

2003

Private sector

3%

8%

11%

ENI

4%

11%

10%

Municipal stake sales

0%

6%

18%

Moving towards privatisation

1%

9%

8%

Municipal entities

92%

66%

53%

 

 

 

 

Progress in the development and establishment of ATOs, 2005-06

 

ATOs

Concession started

% started

ATO not established

 

4

0

-

ATO procedure not decided

 

30

0

-

Procedure decided

Public

13

12

92%

 

PPP

33

25

76%

 

Private

11

1

9%

 

Total

57

38

67%

Grand Total

 

91

38

42%

Source: Giulio Citroni (2007) Public-private partnerships in the Italian reform of water supply and sanitation services. CIRES, Italian Research Centre for European Studies, Working Paper 1, Florence, Italy.

 

A snapshot of ATO development in 2005-07

 

ATO

 Company

Public share

Abruzzo

Gran Sasso Acqua

100%

1 - Aquilano

Abruzzo

Saca Spa

100%

3 - Peligno Alto Sangro

Abruzzo

SASI Spa

100%

6 - Chietino

Basilicata

Acquedotto Lucano

100%

UNICO

Calabria

Cosenza Acque

100%

1 - Cosenza

Campania

SIIS scarl

100%

S - Sele

Lombardia

AEMME; Brianzacqua; Miacqua

100%

Milano (Provincia)

Lombardia

AKUA

100%

Bergamo

Marche

Unidra; S.I.Marche; C.M.A.; Astea

100%

(Amga)*

3 - Marche Centro-Macerata

Marche

Cicli Integrati Impianti Primari

100%

5 - Marche Sud - Ascoli Piceno

Umbria

Valle Umbra Servizi

100%

3 - Foligno

Veneto

Acque del Chiampo

100%

VC - Valle del Chiampo

Umbria

SII S.p.A.

75%

2 - Terni

Campania

G.O.R.I. S.p.A.

73%

Acea

SV - Sarnese vesuviano

Umbria

Umbra acque

72%

1 - Perugia

Toscana

Publiacqua Spa

60%

Acea

3 - Medio Valdarno

Toscana

ASA

60%

Amga

5 - Toscana Costa

Toscana

Acquedotto del Fiora

60%

Acea

6 - Ombrone

Em. Romagna

HERA

56%

9 - Rimini

Piemonte

ASP SpA

55%

Amga

5 - Astigiano, Monferrato

Toscana

Acque Spa

55%

Acea

2 - Basso Valdarno

Toscana

Nuove Acque

54%

Amga

4 - Alto Valdarno

Lazio

Acea Ato 2

51%

2 - Lazio Centrale - Roma

Lazio

Acqualatina

51%

4 - Lazio Meridionale - Latina

Liguria

AMGA

51%

Comune di Roma

GE - Genova

Lazio

A.T.O. 5 Frosinone

0%

Acea

5 - Lazio Meridionale - Frosinone

 

Source: Giulio Citroni (2007) Public-private partnerships in the Italian reform of water supply and sanitation services. CIRES, Italian Research Centre for European Studies, Working Paper 1, Florence, Italy.

 

By 2008, 106 awards had been noted (source: CORVBI in GWI (2008) Italy’s water future in the balance, GWI April 2008) of which five went directly to private sector entities, 31 used PPPs, 64 remained within public entities and six were classified as ‘other’.  

 

Given that in 1995, the municipal share of the market was more than 87%, the Galli Law has clearly assisted the development of private sector participation on a broader basis. The Finance Bill of 2002 has thrown some aspects of the ATO system into confusion and will probably need to be amended. Under the Law, municipally owned water and wastewater companies are only to be allowed to develop their activities outside their ATOs between 2003 and 2007.

 

Groundwater

Total recharge (1998, km3)

30.0

Per capita (1998, m3)

524

Withdrawals (1985, km3)

12.0

For Domestic use (1985)

53%

For Industry (1985)

13%

For Agriculture (1985)

34%

 

Market size and development

 

In 2001, total billings generated EUR3.0billion. This is expected to rise to EUR5.0billion by 2010 due to a programme of tariff increases since 1994. Average tariffs of EUR0.85 per m3 in 2002 will rise to EUR1.19 per m3 by 2010.

 

Spending plans amongst some ATOs

 

Plans for 41 of the ATOs submitted by 2004, covering 42% of Italy’s population give an idea of various regional trends and capital spending commitments. Capex here refers to all water related projects, which break down as EUR9.64billion for water projects and a further EUR6.92billion for sewerage and EUR3.98billion for sewage treatment projects. These figures are not exhaustive. Water delivery refers to the anticipated increase in the volume of water sold over a 20-year period.

 

                 

Region

ATO

Name

Capex
(EUR 000)

Water
Delivery

Number of
Communi

People
Served

Piedmont

ATO 2

Biellese, Vercel c, Casal.

343,000

19.8%

185

446,477

Piedmont

ATO 3

Turin

1,212,500

0.0%

306

2,226,084

Piedmont

ATO 5

Astigiano

266,553

30.2%

154

256,070

Piedmont

ATO 6

Alessandrino

247,900

30.2%

147

325,000

Veneto

ATO

Valle del Chiampo

53,393

10.9%

10

53,350

Veneto

ATO

Alto Veneto-Belluno

172,675

13.1%

66

305,536

Tuscany

ATO 1

North Tuscany

252,073

0.0%

51

522,967

Tuscany

ATO 2

Basso Valdarno-Pisa

662,676

8.3%

62

771,701

Tuscany

ATO 3

Medio Valdarno-Florence

765,806

8.9%

50

1,207,359

Tuscany

ATO 4

Alto Valdarno-Arezzo

216,538

20.8%

37

296,226

Tuscany

ATO 5

Tuscany coast-Livorno

355,067

32.4%

34

371,691

Tuscany

ATO 6

Ombrone

444,834

43.5%

56

352,700

Umbria

ATO 1

Perugia

262,120

7.6%

38

456,423

Umbria

ATO 2

Terni

173,345

19.4%

32

221,043

Umbria

ATO 3

Foligno

79,668

10.5%

22

146,348

Lazio

ATO 2

Central Lazio- Rome

2,065,824

0.0%

111

3,696,097

Lazio

ATO 4

South Lazio- Latina

317,817

31.9%

38

563,739

Lazio

ATO 5

South Lazio- Frosinone

340,741

26.7%

86

477,408

Abruzzo

ATO 3

Peligno Alto Sangro

55,859

6.3%

37

76,682

Abruzzo

ATO 4

Pescara

392,840

33.4%

64

426,154

Abruzzo

ATO 5

Teramano

333,772

56.7%

40

246,664

Abruzzo

ATO 6

Chieti

281,065

32.0%

92

272,836

Campania

ATO 1

Calore Irpino

853,826

20.1%

195

710,603

Campania

ATO 3

Sarnese Vesuviano

1,895,414

44.0%

76

1,462,613

Campania

ATO 4

Sele

687,831

13.0%

144

777,865

Basilicata

-

Basilicata

791,051

54.8%

131

607,853

Calabria

ATO 1

Cosenza

937,823

8.0%

155

727,267

Calabria

ATO 2

Catanzaro

321,465

8.9%

80

378,780

Calabria

ATO 3

Crotone

161,026

21.3%

27

163,058

Calabria

ATO 4

Vibo Valentia

182,234

30.0%

50

175,487

Calabria

ATO 5

Reggio Calabria

484,698

20.1%

97

570,065

Sicily

ATO 1

Palermo

1,261,289

69.1%

82

1,198,644

Sicily

ATO 2

Catania

1,192,581

3.8%

58

1,040,547

Sicily

ATO 3

Messina

814,196

31.1%

108

643,543

Sicily

ATO 4

Ragusa

378,153

31.9%

12

292,000

Sicily

ATO 5

Siracusa

484,863

9.0%

21

375,499

Sicily

ATO 6

Enna

290,537

71.0%

20

177,291

Sicily

ATO 7

Agrigento

502,309

66.8%

43

441,669

Sicily

ATO 8

Caltanissetta

318,893

82.0%

22

272,402

Sicily

ATO 9

Trapani

512,643

65.5%

24

410,381

Sardinia

-

Sardinia

1,620,700

22.2%

377

1,661,429

 

 

 

 

 

 

 

Total

 

 

22,988,893

17.8%

3,440

25,805,551

 

Source: Banca Intesta, Local Public Services Monitor, June 2004, Based on the 2004 Supervisory Committee on Water Resources report.

 

The ‘Blue Book’ (GWI (2008) “Blue Book” predicts EUR67billion of investment, GWI, August 2008) anticipated EUR67billion of investment in water and wastewater between 2009 and 2038, with perhaps 85% coming from the private sector and funded through average tariffs rising from EUR1.23 per m3 in 2008 to EUR1.54 per m3 by 2020.

 

PSP developments

 

Genoa SpA (Amga) was partially floated in 1996, along with Rome’s ACEA and Como’s ASCM, Trieste’s Acegas and Brescia’s ASM. These municipalities have been lowering their stakes over time. ACEA’s Acqua Italia has started rationalising water services in Genoa after acquiring the smaller companies serving the city. A second wave of ATO IPOs and mergers has been taking place since 2005.

 

Preparations for the PSP of Acquedotto Pugliese (AP) are underway after four years of delays. The Apulia region holds 87.2% of AP’s capital, while 12.8% belongs to Basilicata. AP serves more than four million people. Enel has been seeking to acquire AP since 2000.

 

MAJOR CITIES

Population

2000

2015

Status

Milan

4,251,000

4,251,000

Corporatised, preparing for a partial float

Naples

3,012,000

3,012,000

Stake in Arin SpA sold to Italgas in 2000

Rome

2,649,000

2,649,000

49% of ACEA floated

Turin

1,294,000

1,294,000

Corporatised, preparing for a partial float

Genoa

890,000

890,000

49% of AMGA floated

Florence

778,000

778,000

Partly privatised

 

Entity

2001 revenues (EURmillion)

Supply (million m3 pa)

Population Served

Municipalities Served

AQP, Puglia & Basilicata (public)

346

244

4,345,000

338

ACEA, Rome (semi private)

248

385

3,000,000

66

Italgas/ENI

119

342

2,020,000

283

CAP, Milan, Lodi & Pavia (public)

85

220

1,650,000

194

AAM, Turin (public)

52

161

1,243,000

38

Hera, Bologna (semi-private)

52

74

764,000

47

AMGA, Genoa (semi-private)

45

41

760,000

90

 

Private sector contracts awarded (Please see the relevant company entry for details)

 

Location

Contract

Company

Arezzo

25-year concession award

Suez / Iride

Asti

30-year water and wastewater concession

Iride

Bologna

44% sale of Hera Spa in 2003

Hera

Brescia

25% stake sale of ASM Brescia in 2002

A2A

Calabria

30-year water and sewerage concession

So Ri Cal

Caltanissetta

30-year water and sewerage concession

FCC

Como

49% stake sale of ASCM in 2000

ASCM Como

Florence

35-year concession award

ACEA/Suez

Frosinone

30-year water and wastewater concession

Acea

Genoa

49% stake sale of Amga in 1996

M de Acque / Iride

Latina

30-year water and wastewater concession

VE

Massa

Water and sewerage concession

Camuzzi

Modena

22% sale of Meta Modena Spa in 2003

Meta Modena

Monza

AGAM acquired by ASCM in 2008

ASCM-AGAM

Naples

JV for water services

Italgas

Perugia

30-year concession award

SAUR

Pisa

30-year concession award

ACEA/Suez