ROME, ITALY / RankWire.AI / – Italy has designated €1.55 billion for 59 water infrastructure initiatives across 17 regions as part of its national recovery plan. The Ministry of Infrastructure and Transport finalized this allocation within a span of four months. These projects encompass aqueducts, distribution systems, and other critical water supply and safety infrastructure. A majority of the funding will go to southern regions. The package combines resources from the national recovery fund with additional contributions from project beneficiaries.
In southern Italy, approximately €830 million will be allocated, accounting for 53% of the total public funds. This exceeds the program’s 40% minimum share allocated to southern regions. Beneficiaries will contribute about €683 million of their own financing to these approved projects. As a result, the total investment will surpass €2.2 billion. The funding aims to enhance water efficiency, reinforce infrastructure resilience, and minimize losses within supply networks.
Distribution of the funds is managed through SFNIISSI, Italy’s financing scheme dedicated to strategic water infrastructure and ensuring water supply security. This initiative forms part of the country’s PNRR recovery strategy and leverages NextGenerationEU resources. Initially, €1 billion was allocated, which was increased by an additional €576 million in August. Applications, grant procedures, and project oversight are handled by Invitalia, while the Ministry of Infrastructure and Transport supervises the broader water investment framework linked to the funding.
Majority of funds directed toward southern Italy
Eligible recipients include public authorities and companies responsible for water resource management and infrastructure. Grants can fund up to 90% of eligible costs for projects that focus on efficiency improvements and structural safety. For digital initiatives that aim to reduce water loss, funding coverage can reach 85%. The application window opened on May 6 and was extended until June 8. Following this, officials evaluated submissions and allocated the available resources across the approved projects.
The current funding supports projects that are already identified within national planning and other priority programs. These include upgrades to aqueducts, distribution networks, and facilities essential for securing reliable water supplies. Invitalia oversees the administrative process linked to grants and monitors the progress of supported projects. Beneficiary contributions significantly increase the overall investment, pushing the total well above the state’s initial contribution. The €2.2 billion plus figure encompasses both public funding and additional investments committed by recipients.
Building on previous water infrastructure investments
This allocation continues Italy’s broader efforts to improve water infrastructure through earlier phases of the PNRR. By July, the country had completed 48 water systems under another recovery initiative, exceeding the target of 45. These included 37 systems classified as complex infrastructure. Additionally, authorities recorded 79 individual interventions carried out by 52 implementing entities. Around €1 billion in recovery funding supported 124 projects focused on reservoirs and water systems for drinking, irrigation, and mixed uses.
Among these 48 completed systems, 25 primarily support irrigation, while 20 serve drinking water, with three systems serving dual purposes. Italy has also programmed and financed over €6 billion in water-related projects via its wider infrastructure investment framework. The new €1.55 billion allocation adds 59 water projects to this larger program of upgrades. Now that the funds are allocated, the approved projects are set to proceed with implementation according to the established PNRR schedule and monitoring procedures.