UPDATE 2-Italy moves closer to stripping Atlantia of road concession


Reuters | Rome | Updated: 03-01-2020 15:52 IST | Created: 03-01-2020 15:46 IST
UPDATE 2-Italy moves closer to stripping Atlantia of road concession
File photo Image Credit: Twitter(@GiancarloCanc)
  • Country:
  • Italy

Italy's government appeared to move closer to revoking Atlantia's lucrative concession to operate part of the country's motorways, with a cabinet decision expected in the coming days. Controlled by Italy's Benetton family and in charge of the country's biggest motorway network, Atlantia has been in the crosshairs since a concrete bridge operated by its Autostrade per l'Italia (ASPI) unit collapsed in the city of Genoa in August 2018, killing 43 people.

Adding to the group's woes, parts of the roof to a highway tunnel managed by ASPI collapsed near Genoa this week. Deputy Transport Minister Giancarlo Canceller, a member of the ruling 5-Star Movement that has led the charge against Atlantia, said in an interview on Friday that there were "no more alibis" for the company and that Rome would have to strip ASPI of its contract with the state.

"I repeat: we must give a strong signal... what else must collapse to make us understand that these people did not operate with common sense," Cancelleri told daily La Stampa. ASPI, one of the country's 26 motorway operators, manages just over 3,000 kilometers of the country's motorway network.

The leader of the 5-Star Movement, Luigi Di Maio, on Wednesday, said that a newly-introduced measure, which makes an early termination of the contract less costly for the government, was a first step in allowing Rome to strip ASPI of its concession. The decision would now cost the state 8 billion euros ($8.92 billion), down from an initial estimated 23 billion euros, a calculation supplied by financial sources showed.

A source close to the company last month said the loss of the concession without compensation could trigger a default on 16 billion euros ($17.9 billion) of debt at the company and parent Atlantia. ASPI has said that the new rule risked being unconstitutional and added it might take legal steps to protect itself and could seek multi-billion-euro compensation from the state.

Chancellor added that it was not, however, the intention of the government to nationalize the Italian motorway network, but rather hand it over to "entrepreneurs that want to respect the contracts they sign". The new rule also states that state-owned road company ANAS will temporarily manage the motorway if an operator's concession is revoked.

Shares in Atlantia were down 0.6% at 1010 GMT after opening 1.3% lower. ($1 = 0.8970 euros)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback