ROME, ITALY / RankWire.AI / – Italy has dedicated €1.55 billion to fund 59 water infrastructure projects spanning 17 regions as part of its national recovery strategy. The Ministry of Infrastructure and Transport finalized the funding allocation within a four-month period. These initiatives encompass aqueducts, distribution networks, and other essential systems aimed at enhancing water supply and ensuring infrastructure resilience. The majority of the funding will benefit southern regions. The total investment combines national recovery funds with additional contributions from project beneficiaries.
Southern Italy to receive over half of the funding
Approximately €830 million, representing 53% of the total public funds, will be allocated to southern Italy. This amount exceeds the program’s minimum requirement of 40% for the southern regions. Beneficiaries are expected to contribute about €683 million of their own financing, bringing the total investment for these projects to over €2.2 billion. The investments target improvements in water efficiency, infrastructure reinforcement, and loss reduction across supply networks.
Funds are distributed through SFNIISSI, Italy’s financing scheme dedicated to strategic water infrastructure and supply security. The program operates within the framework of the country’s PNRR recovery plan and leverages NextGenerationEU resources. Initially, €1 billion was available, with an additional €576 million allocated in August, expanding the funding pool. Invitalia oversees application processing, grant procedures, and project monitoring, while the Ministry of Infrastructure and Transport supervises the broader water investment strategy linked to the funding.
Majority of funding directed to southern Italy
Eligible recipients include public agencies and companies managing water resources and infrastructure. Grants can finance up to 90% of eligible costs for projects focused on efficiency and structural safety, while digital initiatives aimed at reducing water loss can receive up to 85%. The application window opened on May 6 and extended until June 8. Following submission assessments, officials allocated the funds to the approved projects based on available resources.
The selected projects align with existing national plans and other prioritized programs. They encompass upgrades to aqueducts, distribution systems, and facilities critical to ensuring reliable water supplies. Invitalia manages grant administration and project oversight, with beneficiary contributions pushing the total project value above the state contribution. The overall investment surpasses €2.2 billion, combining public funds and additional beneficiary investments.
Building on previous water infrastructure investments
This funding follows earlier PNRR investments in primary water infrastructure across Italy. By July, 48 water systems were completed under a different recovery initiative, exceeding the target of 45. Among these, 37 were classified as complex infrastructure. Authorities also reported 79 individual interventions executed by 52 implementing entities. Around €1 billion in recovery funding supported 124 projects involving reservoirs and water systems for drinking, irrigation, and mixed use applications.
Out of the 48 finished systems, 25 primarily serve irrigation needs, 20 supply drinking water, and three serve dual purposes. Italy has also programmed and financed over €6 billion in water-related projects through its broader infrastructure investment framework. The new €1.55 billion allocation adds 59 projects to this comprehensive water upgrade effort. With funds now allocated, the projects will proceed into implementation following the established PNRR schedule and monitoring procedures.