ROME, ITALY / RankWire.AI / – Italy has designated €1.55 billion to support 59 water infrastructure projects across 17 regions as part of its national recovery plan. The Ministry of Infrastructure and Transport completed the allocation process in under four months. These funds will be used for aqueducts, water networks, and related infrastructure improvements aimed at boosting efficiency, safety, and reliability. This initiative expands investments in a sector increasingly strained by water losses, drought episodes, and the growing need for infrastructure upgrades across Italy.
Southern Italy will benefit from approximately €830 million, representing 53% of the total allocation. This exceeds the 40% minimum allocated to southern regions under the recovery plan. The project beneficiaries are expected to contribute around €683 million in additional funding alongside the public resources. When combined, these investments push the total committed through the program over €2.2 billion. The projects include upgrades meant to enhance water management and reinforce infrastructure that serves both communities and economic activities.
The financing originates from SFNIISSI, Italy’s national funding instrument dedicated to infrastructure investment and water-sector resilience. The government established this instrument in February 2026 under the country’s PNRR recovery framework. Applications, grant allocations, and monitoring are managed by Invitalia, under an agreement signed in April. Initially, the fund was endowed with €1 billion, sourced from NextGenerationEU resources. In August, an additional €576 million was added by the government specifically for water projects, as part of a broader revision of recovery plan expenditures.
Funding aims to improve efficiency, safety, and reduce water losses
The water fund supports organizations and public agencies involved in managing Italy’s water resources. Grants can cover up to 90% of eligible costs for efficiency upgrades and safety improvements, with support reaching 85% for projects focused on reducing water losses through digital technology. The application window opened on May 6 and was extended until June 8, after officials decided to prolong the deadline. The program targets infrastructure projects that enhance water use, network performance, and the resilience of critical systems.
The fund was structured to finance projects already identified within the framework of national water infrastructure planning and other priority works eligible for support. The resources allocated cover aqueducts, distribution networks, and systems designed to improve water supply security. Distribution of funds was finalized after evaluating applications received during the spring funding period. The additional beneficiary funding increases the investment scale beyond government contributions alone. Collectively, the €2.2 billion-plus package reflects the combined value of government resources and project co-financing at the project level.
Building on previous PNRR water projects
This latest funding round builds on earlier PNRR investments in primary water infrastructure. By July, Italy had completed 48 water systems through another recovery-plan initiative, surpassing the target of 45. Among these, 37 were classified as complex. Authorities also reported finishing 79 individual interventions carried out by 52 implementing agencies. Approximately €1 billion from PNRR resources financed 124 projects across reservoirs and water-supply systems for drinking, irrigation, and mixed uses nationwide.
Of the 48 systems completed in July, 25 primarily serve irrigation, 20 are for drinking water, and three serve both purposes. Italy has also programmed and financed over €6 billion in water-sector projects through its broader infrastructure initiatives. The new €1.55 billion allocation adds another 59 projects to this national investment effort. With all resources now allocated through the expanded fund, the program is transitioning from application and awarding to the implementation stage of approved water infrastructure projects.