Acea Ato5 SpA

The company manages the integrated water services in ATO 5 Southern Lazio-Frosinone, as set out in Regional Law no. 6 of 22 January 1996, under an agreement entered into with the Area Authority. The company is also responsible for all other related, resulting, associated or functional activities.

The management of the integrated water service in the territory of ATO 5 Lazio Frosinone involves a total of 85 municipalities (management still remains to be surveyed for the municipalities of Atina, Paliano and Cassino Centro Urbano as regards water services only) for a total population of around 480,000 inhabitants, about 450,000 inhabitants supplied and a number of end users equal to around 188,900.

No new purchases were formalised in the January-December 2010 period. Following organisational restructuring of technical management, aimed at rationalising resources, a new organisational structure was launched, divided into 3 operating centres called Area Nord, Area centro and Area Sud (Northern, Central and Southern Areas), each with an Area Manager under the control of a single Coordinator.

The drinking water system comprises supply and distribution plants and networks that use 6 main sources from which 6 aqueduct systems originate (Northern supply, Southern supply); minor plants serve certain local systems.
The coverage of this service amounts to about 97%.

The sewerage-purification system comprises a network of sewerage trunk lines connected to terminal treatment plants of urban waste waters.

Following the recognition and the associated assessment of the users connected to the sewerage system (as a result of Ruling no. 335/2008), it was noted that the coverage of this service is equal to approximately 68% with respect to aqueduct users.

As in 2009, special attention was focused on the drinking water and sewerage networks in 2010, resulting in some maintenance work being carried out. Despite this, the networks continue to be in an extremely poor state of repair, forcing the operator to carry out large-scale routine and extraordinary maintenance works.

Water treatment plants are in a similar state and the operator has begun systematic upgrading work.

At all waste water treatment plants, activities continued involving the routine collection, transportation and final disposal of solid and/or liquid waste on the sites, which involved the final disposal of waste of a total volume of roughly 7,100 tonnes as at 31 December 2010.

The preliminary assessment and definition activities continued to support waste disposal authorisation requests for waste water treatment plants.

As at 31 December 2010, new works were transferred, executed by the individual Municipalities, which concern both networks and plants, carried out directly by the entities with public financing and, for each one, provision was made for the drafting of specific transfer papers that were signed by the Municipality, S.T.O. and Acea ATO5 SpA.

As at 31 December 2010 – pursuant to Legislative Decree 31/2001 – quality controls (routine and inspection) were performed on the drinking water sources, tanks and networks.

During the year, a total of 1,960 samples were taken from water destined for human consumption.

Various campaigns designed to reduce leaks along the network were implemented. Leaks, which were identified following inspections using special equipment, were found in abstraction pipes (which often pass over mountainous and uneven terrain), and in municipal distribution networks. It should be noted that the widespread and consolidated old age of the networks, through almost the entire area, absorbs all resources as regards activities targeted at containing water leaks already identified on the road with respect to the research on those already fixed, with average daily work orders, expected to be in excess of 100 work orders/day.

A task force was launched, within the Abstraction Unit, dedicated exclusively to the upgrading and legislative adjustment of chlorination systems and dosage plants throughout the entire area.

For more information on the tariff applied, please refer to the appropriate section “Information on concession service arrangements” and the section “Update on major disputes and litigation” in the Notes to the 2010 Consolidated Financial Statements.

As regards Gori, 2010 was characterised by the actual launch of the extraordinary review of the current Area Plan of A.T.O. no. 3, which shall be performed in compliance with the provisions of the applicable regulations governing the Integrated Water Service and the principles and provisions of the Management Agreement in place between the Sarnese Vesuviano Area Authority and GORI.

More specifically, on 6 December 2010, the Area Authority, formally informed GORI of the launch of the relevant extraordinary review of the Area Plan, which is to be concluded as soon as possible and which should tackle and define a series of significant situations; in particular, the new Area Plan shall be reviewed so as to ensure “bankability", i.e. satisfaction of the requests of the banking system, that requires, as an irremissable condition, an adequate tariff system which ensures - among other things - the full coverage of the costs of the project.

In addition, the aforementioned extraordinary review should define the problems relating to the recovery of tariff adjustments accumulated as at 31 December 2010 (equal to 137 million euros, Group portion 50.8 million euros) due to the tariff structure adopted by the Area Authority which revealed itself to be unsuitable (due to a defect) for guaranteeing the achievement of the real average tariff established beforehand, on a yearly basis, by the Area Plan and, therefore, the corresponding revenues guaranteed by said Plan.