Brussels, 21 September 2023
The European Commission has approved, under EU State aid rules, a €109.9 million Italian measure to provide Sorical S.p.A. with urgent liquidity support.
Sorical, wholly owned by the Region of Calabria, has been entrusted with a concession for the provision of the drinking and waste water services in the region. It is thus the sole regional provider of integrated water services. The company has been experiencing financial difficulties.
The measure aims at providing Sorical with resources to meet its urgent and immediate liquidity needs until the end of 2023. Sorical provides an essential service of general economic interest in the Calabria region, which cannot be substituted by another concessionaire in the short term. The rescue aid will take the form of a loan. Italy committed to submit a restructuring plan of the company in order to become viable in the long-term within six months at the latest. Such possible restructuring would be subject to the Commission’s assessment and approval.
The Commission assessed the Italian measure under EU State aid rules, in particular the Commission’s Guidelines on rescue and restructuring, which enable Member States to rescue companies in difficulties, provided in particular that the public support measures are limited in time and scope and contribute to an objective of common interest. The Commission found that the measure will help ensure the continuation of the water provision services, in the interest of the Calabrian population. At the same time, the strict conditions attached to the loan will keep to a minimum any possible distortions of competition resulting from the rescue aid. On this basis, the Commission approved the measure under EU State aid rules.
The non-confidential version of today’s decision will be made available under the case number SA.108998 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission