Formal SGs are generally not available in support of PPP projects in Italy. However, a number of instruments which exhibit some of the characteristics of an SG have been used on individual projects.
Revenue or usage guarantee - Revenue support from the public sector has been used on some transport projects where the private sector bore ridership risk, such as the EUR 505 million "Milan Metro Line 5" project which reached financial close in 2007.
Sub-sovereign creditworthiness guarantees / Residual value payments - The Cassa Depositie Prestiti (70% owned by the Italian State) is working on the implementation of a number of guarantee products to be used in support of large infrastructure projects. Under the "Fondo di Garanzia per le Opere Pubbliche" ("FGOP") the Cassa Depositie Prestiti could guarantee creditworthiness of the sub-sovereign PPP contract grantors across several sectors (e.g. transport, water & wastewater). This would be particularly used in cases where the grantor is required to make residual value payments upon PPP contract expiry (this is particularly relevant in the road sector).
Loan guarantees - SACE SpA, the Italian export credit agency owned by the Italian Ministry of the Economy and Finance, provides loan guarantees for strategic infrastructure projects in Italy, including PPPs. In this respect, SACE very much operates on a commercial basis. It provides "debt service" guarantees to senior lenders (e.g. commercial banks, EIB, other financial institutions) and charges a pricing commensurate with the risks it bears.