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Azienda Comunale Energia e Ambiente (ACEA), the municipality serving electricity and water services to the city of Rome, was partially floated in February 1999. 51% of the equity is held by the municipality of Rome, 8.9% by Suez Environnement and the rest by a variety of private and institutional investors. A further share sale by the municipality may be considered. The company was founded in 1909 for electricity distribution, started water provision services as AGEA in 1937 and was renamed ACEA in 1945. ACEA is Italy’s largest water and electricity utility. The company believes that it provides the best quality drinking water in Italy at one of the lowest prices for a major city in Europe. In August 2007, merger talks began between ACEA and Iride, the utility which merged with AMGA in 2006, but these have not made significant subsequent progress.

 

ACEA, profit and loss account

 

Y/E 31/12 (EURmillion)

2005

2006

2007

2008

2009

Rome-Water billed (million m3)

438

442

447

455

456

Other ATOs-Water billed (million m3)

N/A

226

272

312

314

Wastewater billed (million m3)

473

485

476

494

527

Turnover

1,624.4

2,187.3

2,583.9

3,144.0

2,954.3

Water EBITDA

170.6

206.7

212.8

258.1

251.5

Operating profit

232.6

290.5

293.4

385.0

185.9

Net profit

127.9

147.4

164.0

186.3

-52.5

Earnings/share (EUR)

0.60

0.69

0.77

0.87

-0.13

 

The 2010-12 business plan anticipates capital spending of EUR579million in the water activities with the aim of expanding its population served in Italy from 8.3million (14.7% market share) to 8.7million (15.2% market share), with water delivered rising from 767million m3 in 2008 to 832million m3 by 2010, with the growth mainly taking place outside Rome.

 

ACEA – people served

 

Country

Water

Sewerage

Total

Italy

8,542,000

9,750,000

9,750,000

Peru

800,000

0

800,000

Honduras

495,000

495,000

495,000

Columbia

3,900,000

0

3,900,000

Total - home markets

8,542,000

9,750,000

9,750,000

Total – international

5,195,000

495,000

5,195,000

Grand total

13,737,000

10,245,000

14,945,000

 

Italy

 

Through a series of contract gains for ATOs, ACEA is now the leading water and wastewater company in Italy. Current year targets for building upon ACEA’s presence in western Italy are ATO1 (Lucca), ATO2 (Perugia) and ATO3 (Rieti). ACEA is seeking to merge the Florence, Pisa and Siena-Grosseto ATOs into a single entity serving 3.3million people in Tuscany. In total, 8.542million people are currently served through seven ATOs, representing a 630,000 increase on the 2008 coverage.

 

ACEA: ATO activities in Italy, 2009

 

ATO

Company name

Stake

City

People served

Communes

ATO 1

Acea ATO2

96%

Lazio-Centrale

3,700,000

112

ATO 5

Acea ATO5

94%

Frostione

480,000

86

ATO 6

Acquedotto del Fiora

80%

Siena-Grosetto

379,000

56

ATO 2

Acque

45%

Pisa

763,000

57

ATO 3

Publiacqua

85%

Firenze

1,260,000

49

ATO 3

Gori Acqua

96%

Sarnese Vesuviano

1,500,000

76

ATO 1

Umbra Acque

40%

Umbria

460,000

38

 

In the medium term, ACEA aims to gain contracts for a further 1.3million people via the ATO process and to gain some 17% of the Italian water and sewerage market (9.8million people, excluding CREA/Sigesa) by 2012, with total water delivered rising from 655million m3 in 2006 to 979million m3 in 2012. The corporate business plan is based on gaining additional ATOs in western Italy and becoming the dominant regional player. 

 

Rome

 

In 1999, 2.8million people were served with water services and 2.2million with sewerage services. This currently stands at 3.37million people through ACEA ATO 2, a 30 year concession between ACEA (96%) and 111 councils (4%) in the ATO2 Lazio region that started in January 2003 and a series of additional contracts.

 

Y/E 31/12 (EURmillion)

2004

2005

Water provision

22.85

23.52

Sewerage

33.77

33.41

Water maintenance services

1.29

1.23

Monumental fountains service

1.59

1.59

Urban water services

7.24

6.21

Concession fee

17.20

17.87

 

Expansion has been achieved through taking on services for neighbouring municipalities:

 

2003: Starting with the municipalities of Rome, Monterotondo, Tivoli, Guidonia-Montecelio, Grottaferrata, Ciampino and Fiumicino, the Simbrivio Consortium, was taken over, a system that supplies water on a wholesale basis to 45 municipalities and 2 consortia.

 

2004: The municipalities of Castel Madama, Mentana, Fonte Nuova, Marcellina, San Gregorio da Sassola, Ciciliano, Pisoniano, Rocca Santo Stefano, Montelanico and Albano Laziale, along with a wholesale water system from a consortium set up by the former Southern Italy Development Fund and previously managed by Lazio Regional Authority, which services Pomezia, Ardea and Lanuvio.

 

2005: The municipalities of Casape, Carpineto Romano, Sambuci, Affile, Arcinazzo Romano (excluding the CO.RE.CALT. Consortium) Gavignano, Gorga, Cervara di Roma, Subiaco, Castel Gandolfo, Vicovaro, Artena, Trevignano Romano and Santa Marinella.

 

2006: Doganella Consortium’s aqueduct system serving the municipalities of Palestrina, Zagarolo, Colonna and San Cesareo and the system serving the municipalities of Bellegra, Roiate, San Vito Romano, Castel San Pietro Romano and Gallicano. Waste water and sewerage services in the municipalities of Capranica Prenestina and Olevano Romano, where drinking water services are managed by another operator. Water services in the municipalities of Poli, Genazzano and Rocca di Cave from March 2007. Services in the municipalities of Fiano Romano, Jenne, Nemi (drinking water services only), Vejano, Segni, Saracinesco, Lariano, Lanuvio, Sacrofano, Tolfa, Allumiere, Pomezia (provisional management of sewerage and water treatment services), Sant’Oreste, Nazzano and Castelnuovo di Porto.

 

2007: Rocca di Cave, Poli and Genazzano (water, having already held their wastewater contracts) and Torrita Tiberina, Riano, Marino, Oriolo Romano and Ponzano Romano (water and wastewater). 

 

2008: A water and wastewater contract for Cerveteri became operational in February 2008. Other municipal contracts gained were for San Polo dei Cavalieri, Trevi nel Lazio, Pugilo and Alti-piani di Arcinazzo. 

 

2009: The Acquedotto del Peschiera Consortium was signed up with agreements from six of the municipalities (Torrita Tiberina, Nazzano, Filacciano, Ponzano Romano, Fiano Romano and San’Oreste) with two further municipalities (Cibvitella san Paulo and Capena) pending. Integrated water services for Foemello were also signed up.  

 

To date, 81 municipalities have opted for ACEA’s services in the region, accounting for 94% of the addressable population, or 3.7million people. ACEA has noted that the pace of acquisitions has slowed since 2007. 

 

Subsequent ATO awards

 

2003

Frosinone

ATO privatisation

480,000 water & wastewater

 

In April 2002, a consortium led by ACEA gained a 30 year concession for the Frosinone ATO 5. ACEA holds 65% of the consortium, with CREA being one of the secondary investors. The concession covers 460,000 people (188,000 customers). EUR361.5million will need to be invested during the concession’s life. The concession entered into service in October 2003 and covers 86 municipalities. Water coverage is 97% and sewerage coverage is 57%.

 

Three ATOs were gained in Tuscany by a consortium led by ACEA and also featuring Ondeo. With ACEA and Ondeo controlling services for 2.7million out of the 3.5million people living in Tuscany, a rationalisation of these concessions is planned.

 

During 2009, ACEA plans to acquire the concessions for the municipalities of Formello, Morlupo, Trevi nel Lazio (sewerage and water treatment alone) and Sant’Angelo Romano, following on the acquisition of the Co.R.Ec.Alt. Consortium, the Acquedotto del Peschiera Consortium and the municipalities of Valmontone and Vallepietra in 2008. These did not progress during the year.

 

2002

Pisa

ATO privatisation

763,000 water & wastewater

 

A 45% stake in Acque SpA (AI) was acquired for EUR19.2million. AI is Tuscany’s ATO-2 Basso Valdarno, serving 57 communes. The 20 year concession will generate EUR1.2billion in revenues.

 

2003

Siena/Grosetto

ATO privatisation

379,000 water & wastewater

 

A 40% equity stake in the Acquedotto de Fiora was acquired by the ACEA led consortium for EUR19.3million, with a concession life of 25 years. ATO-6 Ombrone covers 56 communes and required some EUR433million in capital spending.

 

2003

Florence

ATO privatisation

1,260,000 water & wastewater

 

The ACEA led consortium has acquired 40% of Publiacqua SpA, the holder of the 20 year concession to operate water and wastewater services for 50 communes in Tuscany’s ATO-3 Medio Valdarno. Publiacqua had a turnover of EUR104million in 2002 and net profits of EUR8million. The consortium is contributing EUR60million towards the EUR150million capital increase, with the municipalities paying the remaining EUR90million. In conjunction with the privatisation, EUR300million of Publiacqua’s revenues were securitised in order to pay for the capital increase and to retire mature debt. ACEA is currently in talks to acquire 40% of ASA SpA, Tuscany’s ATO-5 Toscana Costa-Livorno. ASA provides water to 359,000 in the Livorno municipality. 

 

2005

Sarnese Vesuviano

ATO privatisation

1,200,000 water & wastewater

 

A 30 year concession awarded to Campania-Gori SpA, serving part of Naples. This was expanded from 700,000 people to 1,500,000 in the following three years.

 

Acquisition of SIGESA

 

ACEA acquired SIGESA (Società Italiana Gestione Servizio Ambientale) for EUR21.4million in June 2005 and the acquisition was consolidated on 1st January 2006. SIGESA was founded by Bouygues/SAUR in 1986 and acquired the water services activities of Fiat SpA in 1998 along with 71% of Crea in February 2000 (the remaining 29% being held by Italmobiliare SpA). The acquisition valued Crea at EUR67million. Crea supplies water to 13 regions. In 2003, SAUR acquired 26.5% of Umbria Acque the ATO serving 460,000 people in the city of Perugia. Other activities are in Lucca, Rieti and Benevento.

 

Population served (million)

Sigesa

Crea

Combined

Water

0.35

0.85

1.20

Wastewater

0.45

1.85

2.40

Turnover increased from EUR21million in 1999 to EUR48million in 2000 and EUR58million in 2001. Consolidated revenues were EUR30.7million in 2004 after the divestment of the gas activities. ACEA acquired SIGESA for EUR19million in July 2005, a purchase price of EUR2million and the assumption of EUR17million in liabilities.

 

Sale of Acqua Italia to Amga

 

In November 1999, ACEA set up Aqua Italia SpA (AI), a 67:33 venture with Impreligio SpA. In 2000, AI acquired majority stakes in Acquedotto de Ferrari Galliera (ADF, 67%) and Acquedotto Nicolay (AN, 53%), two of the three listed water companies in Italy prior to the emergence of the municipal multi-utilities. Both companies serve the city of Genoa (see their respective company entries). ACEA has also acquired 3.7% of Amga's (see relevant company entry) equity. All three companies provide water services to the city of Genoa. In July 2005, ACEA sold its stake in Acqua Italia to Amga SpA for EUR61million and the assumption of EUR10million in debt. Acqua Italia has revenues of EUR20million in 2004, and a net income of EUR3million.

 

International activities

 

In July 2004, ACEA announced that while it would retain its existing water activities, it would not be seeking new international contracts. ACEA’s Yerevan contract was completed in 2005 and VE gained a subsequent contract serving that city. ACEA’s international activities had revenues of EUR15.8million in 2005 (2004; EUR12.9million) and an operating profit of EUR3.1million (2004; EUR2.2million).

 

Albania

 

2001

Tirana Acque

4 year management

650,000 water

 

ACEA holds 40% of Tirana Acque, an Italian consortium developed to take advantage of bilateral agreements between Italy and Albania. The contract is worth EUR10.5million. The longer-term aim was to be involved in the privatisation of Greater Tirana Water Supply and Sewerage, but this has not gone ahead and the original contract has been completed.

 

Honduras

 

2000

San Pedro

 30 year concession

495,000 water & sewerage

 

The concession was awarded to Aguas de San Pedro in August 2000 and entered service in February 2001, with ACEA holding 31% of the consortium’s equity. Service targets are for 100% water coverage in three years and 100% sewerage coverage within five. USD135million of investment is planned during the life of the concession.  

 

Peru

 

2000

Cono Norte

27 year concession

800,000 water

 

ACEA (Consorcio Agua Azul SA, 45%) teamed with Impregilo SpA (40%), Fisia Utalimianti SpA (5%) and Castalia & Cosapi SA (10%) of Peru for the Cono Norte concession that was awarded to Agua Azul SA in January 2000. After two years constructing a new water treatment works for USD50million, the operating contract runs for 25 years. Cono Norte is part of the city of Rio Chillon. Its population is currently 750,000 but is expected to rise to 2,000,000 by the end of the concession. The concession involves the supply of 44million m3 of water pa at PEN2.8million/month (USD0.8million) and involves USD80million in capital spending.

 
Colombia

 

Operations are carried out through ACEA’s 51% held Aguazul Bogota. It is understood that both contracts have been renewed as of 2009.

 

2003

Bogota

5 year O&M

2,500,000 water

 

The contract is with the municipality’s Empresa de Acueducto y Alcantarillado de Bogotà (EAAB) and covers 45% of the city’s population, based in zones 2 and 5. The contract has an annual turnover of USD10million.

 

2003

Santo Domingo

4 year O&M

1,400,000 water

 

The contract is with the municipality’s CAASD. It will run for a minimum of 4 years and is renewable.

 

Contact Details

Name:

ACEA SpA

Address:

Piazzale Ostiense 2, 00154 Rome, Italy.

Tel:

+390 6 57 991

Fax:

+390 6 57 994 146

Web:

www.aceaspa.it

 

Giancarlo Cremonesi (Chairman)

Marco Staderini (CEO)

Paolo Bassi (CFO)