Italy Water Report 2015
BMI View: The Italian water sector remains highly fragmented and somewhat imbalanced with incoherentwater management systems and inconsistent water charges. This leads to numerous inefficiencies and a lackof clarity, which results in water wastage. It also acts as a deterrent to potential investors and would-beentrants who prefer more stable and transparent investment opportunities. In addition, it now faces punitivefines from the EU Commission due to the continued non-compliance with water pollution regulations. Thiswill, in our view, result in additional regulations and requirements of industrial water users.
We maintain that the Italian water sector is in need of modernisation and expansion in every stage of theprocess. Water extraction is fragmented and frequently not paid for, and water losses were at almost 40% in2010 due to outdated and poorly maintained infrastructure. In addition, although extensive with goodcoverage, many of the water networks are over 30 years old and in drastic need of repair, as are the sewagenetworks. Moreover, only 28% of the population is served by wastewater treatment plants and only 11% ofsewage is treated. We believe that persistent economic instability combined with ongoing uncertaintysurrounding the structure, management and privatisation of the water sector will continue to inhibit newdevelopments and investment into it. Potential government investments and the development of a morecoherent system could, however, rectify some of these issues.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook