D36: Watertim E Case Study - Rom E, Italy
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A research project supported by the European Commission FP5: Energy, Environment and Sustainable Development www.watertime.org Key Action 4: City of Tomorrow and Cultural Heritage Thematic Priority 4.1.2: Improving the quality of urban life watertime@ watertime.org Contract No: EVK4-2002-0095 D36: WaterTim e case study - Rom e, Italy Emanuele Lobina, Senior Research Fellow, PSIRU, Business School, University of Greenwich (e.lobina@ gre.ac.uk) and Daniele Iacovitti, Freelance researcher, Pescara, Italy (ittivocai@ yahoo.it) 4th March 2005 One of 29 WaterTime case studies on decision-making on water systems Watertime case studies Estonia: Tallinn Finland: Tampere, Hämeenlinna France: Grenoble Germany: Berlin, Munich Hungary: Budapest, Debrecen, Szeged Italy: Arezzo, Bologna, Milan, Rome Lithuania: Kaunas, Vilnius Netherlands: Rotterdam Poland: Gdansk, Lodz, Warsaw Romania: Bucharest, Timisoara Spain: Cordoba, Madrid, Palma de Mallorca, Gran Canaria Sweden: Stockholm UK: Cardiff, Edinburgh, Leeds www.watertime.org WaterTime partners: PSIRU, Business School, University of Greenwich, UK ERL, Universidad Complutense de Madrid, Spain Institute of Environmental Engineering and Biotechnology (IEEB), Tampere University of Technology, Finland International Water Affairs, Hamburg, Germany Eötvös József College, Hungary Coordinator: PSIRU, Business School, University of Greenwich, Park Row, London SE10 9LS, U.K. www.watertime.org Table of Contents ACKNOWLEDGEM ENTS.............................................................................................................................................3 1 INTRODUCTION....................................................................................................................................................4 2 CITY BACKGROUND ...........................................................................................................................................4 3 WATER AND WASTEWATER UNDERTAKING .............................................................................................4 3.1 BACKGROUND.................................................................................................................................................... 4 3.2 WATER AND WASTEWATER UNDERTAKING PROFILE .......................................................................................... 4 3.3 SYSTEM PROFILE ................................................................................................................................................ 5 3.4 REGION PROFILE ................................................................................................................................................ 5 3.5 PERFORMANCE INDICATORS............................................................................................................................... 5 4 ACTORS IN WATER AND WASTEWATER SERVICES PROVISION AND PRODUCTION ...................6 5 EPISODES................................................................................................................................................................6 5.1 DECISION TO EXPAND ACTIVITIES OF —AZIENDA MUNICIPALIZZATA“ ACEA, AND TRANSFORMATION OF ACEA INTO AZIENDA SPECIALE: 1975-1998............................................................................................................................... 6 5.1.1 Expansion of ACEA activities, poor governance and financial difficulties: 1975-1992...............................6 5.1.2 Transformation of ACEA into —azienda speciale“: 1993-1998...................................................................7 5.2 ACEA CORPORATISATION AND PART-PRIVATISATION: 1993-2004 .................................................................... 8 5.2.1 The referendum on ACEA privatisation........................................................................................................9 5.2.2 Acea expansion in Italian water sector and alliance with Suez, expansion of international water operations, diversification into telecommunications, write-off and back to basics: 1999-2004..............................10 5.3 AWARD TO ACEA IN ROME ATO: 1994-2004 .................................................................................................. 11 6 PARTICIPATION AND SUSTAINABILITY IN DECISION M AKING ........................................................13 6.1 PUBLIC PARTICIPATION IN ROME ..................................................................................................................... 13 6.2 PUBLIC PARTICIPATION IN WATER AT REGIONAL LEVEL................................................................................... 13 6.3 SUSTAINABILITY.............................................................................................................................................. 14 7 CITY IN TIM E......................................................................................................................................................16 8 CONCLUSIONS AND DISCUSSION OF FINDINGS.......................................................................................17 8.1 DISCUSSION OF MAIN ISSUES WITH ACEA CEO................................................................................................ 17 8.2 CONCLUSIONS.................................................................................................................................................. 17 9 REFERENCES.......................................................................................................................................................19 NOTES.............................................................................................................................................................................19 31/01/2005 Page 2 www.watertime.org Acknowledgements The authors wish to acknowledge the financial support of the European Commission. We would also like to thank the following for making the time to be interviewed and providing documents and other material: • Stefano Battilossi, Visiting Professor, Carlos III University, Madrid, Spain • Laura Colella, Press Office Head, Public Relations and Communication, Acea S.p.A. • Renato Drusiani, Director General, Federgasacqua • Andrea Mangoni, Chief Executive Officer, Acea S.p.A. • Mattia Morandi, Agenzia per il controllo e la qualità dei Servizi Pubblici Locali del Comune di Roma, Municipality of Rome • Alessandro Piotti, Dirigente Responsabile, Segreteria Tecnico Operativa, Autorità ATO2, Lazio Centrale-Roma • Carlo Ranuzzi, Gruppo Consiliare Partito della Rifondazione Comunista, Rome City Council • Stefano Zolea, Consulta Regionale degli Utenti e dei Consumatori del Servizio Idrico Integrato, Region Lazio Unless otherwise stated, the views expressed in this report are those of the authors and do not necessarily reflect the views of the European Commission, nor any of the listed stakeholders. 31/01/2005 Page 3 www.watertime.org 1 Introduction Watertime is based on 29 case studies. These case studies are expected to provide information on the interaction between a range of PESTE factors, at various levels, and the parties and processes involved in decision-making, including the constraints on decisions and objectives of decision-makers, so that models can be developed of these interactions to guide future decision-makers. In the last 20 years, a number of decisions have been taken in Rome which have affected the institutional and organisational structure of water supply and sanitation services. Initially, the municipal multi-utility (energy and water) undertaking ACEA was restructured under full public ownership and management. In a second phase, the municipal enterprise was corporatised and listed on the stock exchange, although it remained majority owned by the municipality. The company was then transformed into a water multinational, exploiting opportunities in transition and developing countries as well as in Italy, as the Galli Law was being implemented in a number of ATOs and operating contracts put out for tender. In doing so, Acea has set up an alliance with a major water and electricity multinational, Suez, which now owns a minority stake in Acea‘s own capital. The new corporate structure has certainly facilitated Acea‘s expansion strategy but has also proved to imply a number of drawbacks. For example, the municipality has been recently considering to sell another tranche of its shares and reduce its stake below 50% of the capital but has refrained from doing so due to the adverse conditions of the share market (Acea‘s shares have been trading negatively for a long period despite positive financial results). Also, the company‘s expansion and diversification strategy led Acea to invest in the telecommunications sector, a move which proved unsuccessful and led the management to write-off its activities and refocus on core energy and water operations. 2 City background As of October 2001, Rome counted over 2.6 million residents. 3 Water and wastewater undertaking 3.1 Background The municipal enterprise ACEA has provided water supply and sanitation services to the commune of Rome since 1985. In 1992, Acea‘s original legal status, that of —azienda municipalizzata“, has been changed into —azienda speciale“ and in 1998 into that of a PLC listed on the stock exchange. Following the implementation of the Galli Law, a subsidiary of Acea has been appointed as the only water supply and sanitation operator under a 30-year concession for the ATO-2 area, including Rome and other 111 municipalities