€300 million provided to Italian province for sustainable recovery projects
Posted: 22 July 2020 | Sam Mehmet (Intelligent Transport)
EIB funding will support public infrastructure, public transport, energy efficiency and renewable energy sources, the fight against climate change and economic recovery in the Autonomous Province of Trento following the crisis caused by the pandemic.
The EU bank is backing the Autonomous Province of Trento, Italy for all sustainable public sector projects and the economic recovery from the impact of the COVID-19 pandemic. This is the goal of the agreement signed by the European Investment Bank (EIB), which will provide €300 million to the northern Italian province, with an initial tranche of €160 million already finalised.
Cassa del Trentino – the institution for supporting economic development and infrastructure construction and management within the autonomous province – will be responsible for channelling the resources to municipalities and public entities.
Projects in the sustainable transport, public infrastructure, energy efficiency and renewable energy sources, urban development, and renewal sectors together with investments in tackling and mitigating climate change will be eligible for financing.
These will be joined by any projects of municipalities and public entities in Trentino that aim to alleviate the effects of the economic and social crisis caused by the pandemic and lay the groundwork for an economic recovery, such as promoting public transport use over a car-led recovery.
The maturity of the loans can be up to 20 years, with a four-year grace period. In addition to the advantages of EIB financing – whose own AAA rated bond issues enable it to offer long maturities and favourable rates to loan beneficiaries – disbursements from Cassa del Trentino will be subject to a guarantee from the province.
“Trentino has a long history of applying EU bank financing. I am therefore very proud that it is the first in Italy to use the resources we are making available to regions and provinces for sustainable investments and to drive the recovery of the economy, which was hit hard by the halt in activity caused by the COVID-19 pandemic,” said EIB Vice-President Dario Scannapieco.