EIB Backs €50 Million Water Upgrade for Italy's Modena Region

The investment programme includes replacing and extending water and sewerage pipelines, upgrading wastewater treatment plants and introducing advanced digital monitoring systems to improve network management.

The European Investment Bank (EIB) has signed a €50 million financing agreement with Italian multiutility AIMAG S.p.A. to support a major programme of water infrastructure upgrades in the province of Modena, benefiting around 200,000 residents.

Backed by the European Union's InvestEU programme, the funding will help deliver a multi-year investment plan focused on improving drinking water supply, expanding sewerage networks and modernising wastewater treatment facilities. The programme is designed to strengthen essential public services while preparing local infrastructure for the growing impact of climate change.

EIB Director of Public Sector Operations Gilles Badot said investing in water infrastructure helps communities deliver reliable essential services while improving their ability to cope with increasingly frequent extreme weather events. He added that the project reflects the Bank's commitment to supporting sustainable development and modern infrastructure across Italy.

Climate Resilience and Digital Technology at the Core

The investment programme includes replacing and extending water and sewerage pipelines, upgrading wastewater treatment plants and introducing advanced digital monitoring systems to improve network management.

AIMAG plans to use remote-control technologies that will allow operators to detect problems earlier, carry out predictive maintenance and reduce service interruptions. The works are also expected to lower water losses, improve wastewater treatment efficiency and strengthen the resilience of the network during floods, droughts and other climate-related emergencies.

The programme has been designed in line with European and Italian environmental objectives as well as local climate adaptation strategies. Operating in one of Italy's most economically active regions, AIMAG expects the investment to improve water quality, maintain service continuity and increase the area's ability to respond quickly during water-related emergencies.

Marco Malavolta, Chief Financial Officer of AIMAG, said the agreement completes a financial restructuring process that began about two years ago. He explained that the financing will support the company's 2025–2028 business plan while improving the cost and duration of its long-term borrowing. He described the EIB as a valuable partner that will help strengthen both operational performance and investment capacity.

Part of Wider Support for Italy's Water Sector

The agreement forms part of the EIB's broader strategy to modernise water infrastructure across Italy. As Europe's largest public lender for the water sector, the Bank has continued expanding its support for Italian utilities that provide essential public services.

During 2025, the EIB committed €837 million to water utility projects across the country. The funding supported investments by several major operators, including MM S.p.A., SMAT, CAP Group, BrianzAcque, Acqua Novara.VCO, Azienda Comprensoriale Acquedottistica S.p.A., ACEA and the sixth Viveracqua Hydrobond issue.

These investments are helping improve access to safe drinking water, strengthen protection against hydrogeological risks and encourage more efficient and sustainable management of water resources across Italy, reinforcing the country's long-term infrastructure resilience.