2005 - 2006 - Pinsent Masons Water Yearbook 2012

ITALY PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
AMGA SPA
Azienda Mediterranea Gas e Acqua (Amga), is the city of Genoa’s gas and water utility. Amga is
54.1% held by the municipality of Genoa (30.7% directly and 23.4% through SPIm Spa) following the
partial privatisation in October 1996. Amga currently provides 915,000 people with water and
sewerage services in the city, and has gained contracts serving a further 2.1 million people in other
parts of Italy and a management contract in Moldova. Water and sewerage accounted for 15% of
group turnover in 2003. Amga believes it can provide water services to a total of 3.3-3.5 million
people in Italy in the medium term.
Amga has split off its local water division from the rest of its activities into Genova Acque, to ensure
that it has the maximum flexibility to develop its activities outside Genoa once the municipality sees fit
to sell off its majority holding. In 2003, Amga was granted a five year contract to manage the Genova
ATO. This contract involves capital spending of €115 million (€35 million supplied by the municipality),
designed to upgrade sewerage and sewage treatment and expand water distribution by 8million m 3 .
Genova Acque and its neighbouring companies
Acquedotto Nicolay SpA (AN) and Acquedotto de Ferrari Galliera SpA (ADFG) have been responsible
for water distribution to parts of the city of Genoa since 1853 and 1880 respectively, serving a total of
330,000 people.
In 2000, ACEA through Aqua Italia made a bid for AFDG and AN. After gaining 67.0% of ADFG’s
shares, ADFG’s management accepted the bid. AMGA’s Genova Acque held a further 27.62% of
ADFG’s equity. After gaining 53.15% of Acquedotto Nicolay’s shares, the company’s management
accepted the bid. These shares have subsequently been vested to Acquedotto de Ferrari Galliera.
AMGA’s Genova Acque held a further 33.71% of AN.
Y/E 31/12/2004 (€
Acquedotto Acquedotto
million)
Ferrari Galliera Nicolay
Turnover 31.1 9.3
Net income 4.4 1.4
People served 200,000 110,000
In 2000, Veolia acquired 20% of Genova Acque in return for its 28% and 34% stakes in Acquedotto
de Ferrari Galliera and Acquedotto Nicolay respectively. ACEA sold its 67% stake in Acqua Italia, the
holding company for its stakes in Acquedotto de Ferrari Galliera and Acquedotto Nicolay to Amga in
July 2005 for €57 million, with Amga acquiring the outstanding shares in Acquedotto de Ferrari
Galliera in a separate bid. These transactions will be subject to regulatory approval.
Amga, profit and loss account
Y/E 31/12 (€ million) 2000 2001 2002 2003 2004
Natural gas 148.8 189.0 258.9 241.0 289.8
Water 47.2 56.4 55.3 56.1 59.6
Turnover 201.8 245.4 341.2 363.0 430.4
Operating profit 26.3 28.0 35.7 44.9 45.2
Net income 16.6 20.6 19.0 36.6 25.2
Earnings per Share 0.049 0.063 0.058 0.107 0.073
In 1999, Amga was part of the Suez led consortium that gained the 25 year water and sewerage
concession for Arezzo and 36 surrounding communes. This was the first water concession awarded
in Italy, reflecting the belated impact of the 1994 Galli Law. By 2004, Amga provided water and/or
sewerage services for 915,000 people in the Genova ATO region.
In March 2000, Amga was awarded three potable water supply contracts in Sardinia for 62,000
people; Sulcis Iglesinete (11,000), Campidano (25,000) and Trexenta-Marmilia-Mandrolisai (26,000),
with a total turnover of Lira7 billion per annum. In April 2000, Amga gained two contracts in Calabria
with a Lira50 billion turnover, with Lira8.5 billion of investment in the first year and rising from then on.
309 Pinsent Masons Water Yearbook 2005 – 2006