Italy: Ischia – EIB provides €1 billion for post-earthquake and landslide reconstruction

This article is published in association with European Investment Bank.

• The first €150 million tranche – part of the financial package approved by the EIB for the reconstruction of public and private buildings in Ischia – was signed today.
• The EIB financing will go to the Italian government via the Ministry for the Economy and Finance, and will help fund the operations of the Commissioner’s Office.
• The agreement follows the free EIB technical assistance that identified areas of intervention and technical specifications.

The European Investment Bank (EIB) has approved a €1 billion loan to rebuild public and private buildings in the Italian region of Ischia that were severely damaged by the 2017 earthquake and 2022 landslide. The first tranche of €150 million to support ongoing operations was signed at the Ministry for the Economy and Finance today.

In concrete terms, the EIB loan will go to the Ministry for the Economy and Finance and will help fund the operations of the Commissioner’s Office. This agreement is another step forward in the longstanding partnership between the EIB and Italy, which aims to support strategic initiatives of national importance. Recent joint projects include helping Rete Ferroviaria Italiana S.p.A (RFI) to develop high-speed rail across the country and rebuilding central Italian regions hit by earthquakes in 2016 and 2017, for which the EIB provided €4.75 billion.

The post-earthquake and landslide reconstruction operations on the island of Ischia aim to secure and enhance a wonderful yet fragile corner of Italy, while also making it more resilient. The funds will help finance operations to renovate private residential and non-residential buildings, schools and public buildings, water infrastructure and roads. All buildings renovated with EIB resources will adhere to the highest energy efficiency standards. In addition, to foster climate change adaptation and combat hydrogeological instability, financing will go to operations to shore up slopes, restore the hydraulic conductivity of riverbeds and build new structures to mitigate remaining risks.

The best interest rate terms available on international markets mean that the resources provided by the EIB will enable the Italian government to make substantial financial savings over the 25-year financing period. This financial support is further complemented by the free technical assistance agreement signed by the EIB and the Commissioner’s Office in 2022, which identified the main climate adaptation measures, investment options and technical specifications for post-earthquake reconstruction in Ischia and operations to combat hydrogeological instability, and which continues to assist the Commissioner’s Office with implementing initiatives.

“This agreement confirms the EIB role as a major financial and technical partner of Italy in addressing the challenges posed by climate change and natural disasters,” said EIB Vice-President Gelsomina Vigliotti. “The EIB loan was made possible by the free technical assistance offered to the Commissioner’s Office, which identified main areas of intervention to strengthen Ischia’s resilience to future extreme climate events, ensuring a safer future and a more sustainable island for its residents.”

“I would like to thank EIB Vice-President Gelsomina Vigliotti and Minister for the Economy and Finance Giancarlo Giorgetti for signing this finance contract. I am very pleased that this project agreement has been finalised,” added Commissioner Giovanni Legnini. “The EIB’s contribution to post-earthquake and post-landslide reconstruction on the island of Ischia is of decisive importance, both from a financial point of view and for the advisory support provided so far. Engaging in joint projects with the EIB will enable us to further strengthen compliance with environmental sustainability principles and to integrate climate change adaptation into project design. This is the first time we have done this during the reconstruction process and we are very pleased with it. It is hoped that the contract signed today will gradually be financed from the government budget.”

European Investment Bank (EIB)

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances investments that can contribute to EU policy. EIB projects strengthen competitiveness, foster innovation, promote sustainable development and improve social and territorial cohesion while supporting a fair and rapid transition towards climate neutrality. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.