The European Investment Bank (EIB) is providing a €100 million loan to support the 2025-2029 investment programme of MM S.p.A., the municipality of Milan’s integrated water services management company, which meets aggregate demand from around two million people – 1.4 million residents plus commuters and visitors. The agreement, which marks the 70th anniversary of the foundation of MM, was announced today by EIB Vice-President Gelsomina Vigliotti and CEO of MM S.p.A. Francesco Mascolo.
This operation, the second between the EIB and MM following the €70 million operation signed in 2016, is backed by the guarantee of InvestEU, the European Union’s investment programme through which the EIB has already unlocked more than €4 billion in Italy.
The funds made available by the EIB will enable the company to implement its investment plan, duly agreed upon with the Milan Metropolitan Area Office (“Ufficio d’Ambito”) and the Italian Regulatory Authority for Energy, Networks and the Environment (ARERA). MM's investment programme aims to make water supply more reliable and resilient to extreme weather events such as droughts and heavy rain, make the service more energy efficient and develop circular economy projects concerning wastewater collection and treatment.
Thanks to the best interest rate terms available on international markets, the EIB financing will provide MM with more favourable financial conditions than through traditional banking channels in terms of both cost and maturity, thereby further strengthening its financial position and accelerating project implementation.
“This financing illustrates the EIB’s role as one of the world’s leading public lenders to the water sector and represents a significant step forward in strengthening infrastructure in Milan, making the service more resilient, secure and efficient,” said EIB Vice-President Gelsomina Vigliotti.
“This agreement with the EIB comes at a historic time for water management companies as new directives come into force and the European Commission launches the Water Resilience Strategy. MM is ready to face new challenges with the aim of further improving performance. Indeed, thanks to investments in recent years, network losses have been cut to 11% compared to the national average of 40%, enabling Milan to maintain one of the lowest tariffs in Europe,” said CEO of MM Francesco Mascolo.
Italy receives more EIB funding for the water sector than any other country
With over 1770 projects and more than €86 billion in financing provided since 1958, the EIB is one of the world’s leading lenders to the water sector. In the last ten years, Italy has received more EIB funding for the water sector than any other country, with operations financed totalling more than €4.3 billion.
