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EIB Signs €50M Deal to Upgrade Modena’s Water Infrastructure

Prime Highlights 

  • EIB signs €50 million deal with AIMAG for Modena water upgrades.  
  • Programme benefits 200,000 residents through pipeline and treatment upgrades.  

Key Facts 

  • EIB is Europe’s largest water sector lender.  
  • EIB committed €837 million to Italian water projects last year.  

Background 

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

The funding, backed by the European Union’s InvestEU programme, will help to implement a multi-year investment plan to improve drinking water supply, extend sewerage networks and modernise wastewater treatment facilities. The programme aims to strengthen essential public services while preparing local infrastructure for the growing impact of climate change. 

Investing in water infrastructure, according to EIB Director of Public Sector Operations Gilles Badot, helps communities provide dependable critical services while enhancing their capacity to handle more frequent extreme weather events. The project is a sign of the Bank’s commitment to supporting sustainable development and modern infrastructure throughout Italy,” he added. 

The investment programme includes replacing and extending water and sewerage pipelines, upgrading wastewater treatment plants and introducing advanced digital monitoring systems for better network management. AIMAG plans to deploy 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 cut water losses, improve treatment efficiency and strengthen network resilience during floods, droughts and other climate-related emergencies. 

Marco Malavolta, Chief Financial Officer of AIMAG, said the agreement completes a financial restructuring process that began roughly 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, describing the EIB as a valuable partner in strengthening operational performance and investment capacity. 

The agreement forms part of the EIB’s wider strategy to modernise water infrastructure across Italy. As Europe’s largest public lender for the water sector, the Bank committed €837 million to Italian water utility projects last year, supporting operators including MM S.p.A., SMAT, CAP Group, BrianzAcque and ACEA, among others.