EIB Grants €100M Loan to CAP Group to Upgrade Lombardy’s Water Infrastructure

The European Investment Bank (EIB) and CAP Group, a leading public utility in Italy's water management sector, have signed a €100 million financing agreement to strengthen and modernize water and sewerage infrastructure across Milan and several provinces in Lombardy. The investment, part of CAP Group's 2025–2030 strategic plan, will benefit 154 municipalities and improve services for more than 2.4 million residents in northern Italy.

The agreement was formally announced by Jean-Christophe Laloux, EIB Director General of Operations, and Yuri Santagostino, Chairman of CAP Group, during a joint event that underscored the shared commitment of both institutions to sustainable water management, climate adaptation, and innovation.

Building Resilience for a Changing Climate

The EIB financing will be used to upgrade water distribution and sewerage networks, modernize wastewater treatment systems, and develop digital management tools that improve the efficiency and resilience of integrated water services. The funding will enable CAP Group to accelerate infrastructure renewal, reduce leakages, mitigate flood risks, and improve service continuity during extreme weather events — all key priorities as climate change increases pressure on water systems across Europe.

"Investing in water infrastructure means investing in people's quality of life," said Jean-Christophe Laloux. "This EIB funding will help ensure a safer, more reliable, and sustainable water service for communities in the Milan metropolitan area and throughout Lombardy."

The initiative also aligns with the EU's Green Deal and the EIB's Climate Bank Roadmap, which prioritizes sustainable investment in sectors that support both environmental protection and human well-being.

Strengthening Lombardy's Water Network

Lombardy, Italy's most populous and industrialized region, faces increasing challenges from urbanization, industrial demand, and climate variability. Heavy rainfall and aging infrastructure have exacerbated sewage overflow and flooding risks, while water scarcity during summer months has strained supply systems.

With the new investment, CAP Group plans to:

• Increase reliability and resilience of the regional water network.

• Upgrade sewer systems to reduce the risk of urban flooding and environmental contamination.

• Improve wastewater treatment capacity and efficiency, ensuring compliance with EU environmental directives.

• Introduce digital management platforms for real-time monitoring of water quality, network performance, and energy consumption.

• Enhance circular water use by recovering and reusing treated water where possible.

"This funding strengthens our ability to plan and implement large-scale strategic investments," said Yuri Santagostino, CAP Group Chairman. "It will directly improve the local economy and service quality. The trust that the EIB places in us confirms the solidity of our industrial model and allows us to accelerate infrastructure upgrades, generating value for both the people and the Lombardy region."

A Longstanding Partnership in the Water Sector

The EIB's partnership with CAP Group builds on a history of close cooperation with Italian public utilities, particularly in the water and wastewater management sector. Italy has long been one of the largest recipients of EIB financing for water infrastructure, reflecting both the scale of its needs and the quality of its project governance.

Since its founding in 1958, the EIB has supported over 1,770 water-related projects worldwide, providing more than €86 billion in financing, making it one of the world's leading lenders to the water sector.

In the past decade alone, Italy has received more than €4.3 billion in EIB loans for the sector — more than any other country. The new loan to CAP Group complements several other 2025 EIB-financed operations, including:

• BrianzAcque (€45 million)

• Acqua Novara.VCO (€150 million)

• Azienda Comprensoriale Acquedottistica S.p.A. (€30 million)

• ACEA (€90 million)

These combined initiatives are part of a nationwide effort to modernize water networks, improve wastewater management, and adapt infrastructure to climate risks.

CAP Group's Vision for Sustainable Water Management

CAP Group, headquartered in Milan, is one of Italy's largest public-sector utilities, managing the integrated water service — from distribution and sewerage to treatment and reuse — across much of the Lombardy region. The company's investment plan for 2025–2030 focuses on sustainability, innovation, and digital transformation, integrating environmental and social goals into its operational model.

The EIB loan will support projects aligned with EU environmental directives and Italy's National Recovery and Resilience Plan (PNRR), particularly in areas related to green infrastructure, climate adaptation, and sustainable water management.

Beyond infrastructure upgrades, CAP Group's vision includes fostering public awareness on water conservation, promoting research partnerships, and exploring circular economy models in wastewater treatment — transforming waste into renewable energy and reusable materials.

EIB's Broader Commitment to Sustainability

As the EU's climate bank, the European Investment Bank has made sustainable infrastructure investment one of its top strategic priorities. By 2030, the EIB aims to mobilize more than €1 trillion in climate and environmental sustainability investment. Water infrastructure — a critical component of both public health and climate resilience — remains a cornerstone of that effort.

EIB-supported projects in Europe and globally are helping to ensure access to clean water, wastewater treatment, and climate-smart infrastructure, particularly in regions facing growing environmental stress.

"Our goal is to build resilient communities," Laloux emphasized. "Every euro invested in water security helps safeguard ecosystems, economies, and the well-being of future generations."

Securing Lombardy's Water Future

The new partnership between the EIB and CAP Group represents not only an investment in infrastructure, but also in people and sustainability. By integrating advanced technologies, environmental stewardship, and long-term resilience planning, the initiative positions Lombardy as a model for green urban infrastructure in Europe.

As Italy continues to confront the twin challenges of climate change and urban expansion, such investments demonstrate how financial institutions and public utilities can collaborate to deliver lasting, equitable, and environmentally sound development outcomes.