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Infrastructures, not building them costs 800 billion

The results of the 2014 study were presented in Rome, the annual report of the Observatory "The Costs of Nonfare" (www.costidelnonfare.it), directed by Prof. Andrea Gilardoni of Bocconi University, now in its 9th edition - The failure to implement the priority works in Italy, in the period 2014-2030, could generate over 800 billion in costs.

Infrastructures, not building them costs 800 billion

On Tuesday 2 December 2014, in Rome, at the via Veneto di Fintecna Auditorium in via Veneto 89, the conference entitled: “The new frontiers of infrastructural development. Technological innovation and international opportunities” during which the results of the Study 2014, the annual report of the Observatory "The Costs of Not Doing" (www.costidelnonfare.it), directed by Prof. Andrea Gilardoni of Bocconi University, now in its ninth edition. Alongside the usual identification of the country's infrastructural priorities and the calculation of the costs that weigh on the community due to their failed/delayed construction, the Study extends the analysis to improve the performance of existing infrastructures, to investment opportunities for Italian companies in the global infrastructure market and the most innovative and effective models for financing works.

The main data of the 9th Report are:
– Failure to carry out the priority works in Italy, in the period 2014-2030, could generate over €800 billion of CNF (Costs of Not Doing).
– €124 billion in the environment and energy sectors, €260 billion in transport and logistics and €425 billion in telecommunications.
– In energy, not building 24.000 MW of generation plants, 5.430 km of transmission networks, 162 electricity stations and an 8 G (m3) regasification terminal could generate CNF for almost €70 billion.
– Failure to build about 28 waste-to-energy plants would cost the country more than €4 billion over 17 years.
– 1.300 km of new motorways and extensions to avoid costs of over €84 billion.
– The challenges of the railway sector: high-speed and conventional lines to speed up the country, facilitate connections, offer higher quality transport services and encourage the modal shift of goods.
– €72 billion in logistics costs without the efficient use of interports and the revitalization of the competitiveness of ports.
– An adequate plan of priority interventions to guarantee the quality and efficiency of the water resource and service. Such measures would avoid costs of €49 billion.
– Ultra-broadband priority for the country: 425 billion of potential benefits.
– The failure to improve the performance of the infrastructure through modernization, efficiency and technological upgrade interventions of the existing one generates CNF equal to approximately €18,5 billion by 2030.
– Global infrastructure market: important scenarios for Italian companies that have to look to international markets to find resources and take advantage of new growth opportunities.
– Necessary to encourage PPP and the use of Project Bonds. New players – insurance, pension funds, sovereign wealth funds, infrastructure and private equity funds – will play a key role in financing infrastructure in the coming years.

The presentation of the firm was an opportunity to discuss with the top management of the partner companies and the main operators in the sectors analysed. The event was attended by: Alberto Irace (Acea), Massimo Bruno (Enel), Giovanni Valotti (Federutility), Barbara Morgante (Italian State Railways), Stefano Venier (Hera), Marco Patuano (Telecom Italia), Matteo Del Fante ( triad).

During the workshop Franco Bassanini and Pietro Salini presented the 2014 Infrastructure Development Award, of the MUI magazine, to Carlo Malacarne, for the management of the delicate ENI-SNAM separation with a view to connecting the European gas networks, and the special recognition to Vainer Marchesini (WAM) for the post-earthquake reconstruction of 2012. Before the table concluding round, there was a brief speech by the Hon. Cristina Bargero, coordinator of the Parliamentary Intergroup The Costs of Not Doing.

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