The NRRP and developing transport for Italy

The NRRP and developing transport for Italy (203-1, 203-2)

This current period will likely be remembered as one of the toughest in recent history, with two financial crises and a global public health emergency that caused millions of deaths along with terrible consequences for the economy, employment and production of all countries, upending every aspect of our lives and, as described earlier, disrupting the mobility system. Reluctance to travel to work and greater scrutiny of health and safety among the population, deurbanisation, less spending power and greater inequality, widespread digitalisation in all areas from daily life to smart cities, and greater awareness of creating inclusive and equal social value. These are just some of the effects and new trends provoked by the pandemic. As a result, the cornerstones of future recovery need to be upgraded and the FS Italiane group is steering its strategy towards a new model that will turn disruption into opportunity.

Thanks to the NextGenerationEU extraordinary fund19 approved by the European Council in July 2020, we now have tools to help tackle and overcome these difficulties. In the words of the President of the European Commission Ursula von der Leyen, the goal of the plan is to “not only repair and recover for the here and now, but to shape a better way of living for the world of tomorrow” . The “Italia Domani” National Recovery and Resilience Plan (NRRP) set up to implement the NextGenerationEU plan will mobilise over €191.5 billion. This will give Italy the opportunity to turn the page and overcome the economic and social impacts of the pandemic to build a new fairer, greener, more inclusive country.

The FS Italiane group has been called to play a crucial role in defining and implementing the NRRP. To date, €25.2 billion of the funds provided by the NRRP and the Complementary Fund have been allocated to FS Group companies in their role as implementers. Specifically, roughly €24.6

billion of funds earmarked for Mission 3 “Infrastructure for sustainable mobility” has been allocated to the Group, including €23.96 billion to RFI investments.

Mission 3: Infrastructure for sustainable mobility

Upgrade and expand the national high speed railway network and enhance the regional railway network, especially in the south. Upgrade freight transport services using an intermodal approach regarding the airport network. Foster the optimisation and digitalisation of air traffic.

19 Also known as the Recovery Fund.

This is in line with the role allocated to railway transport regarding the Sustainable and Smart Mobility Strategy (SSMS) goals set by the EC in 2020 to help cut CO2 emissions by 90% by 2050 and to complete the Single European Transport Area set out in the 2011 White Paper to promote cohesion, reduce regional disparity, improve connectivity and access to the domestic market for all regions. Adding resources to existing projects and speeding them up, as well as introducing new projects linked to the strategy to build up the country’s infrastructure (#Italia Veloce), the railway investments included in Mission 3 of the NRRP - integrated with those set out in the Complementary Fund as per article 4 of Decree law no. 59/2021 - aim to build and complete works that are part of European infrastructure

projects or that bridge gaps that are hindering Italy’s economic development, especially in the south and the islands

Focused on developing the main railway lines, linking them up and integrating them into the HS/HC network, speeding up and updating the entire network including the regional lines, strengthening the railways for transporting freight over long distances and improving last mile connections, the Mission 3

NRRP investments which RFI is responsible for are broken down into eight areas: 1. High speed railway connections to the south for passengers and freight 2. High speed lines in the north connecting to Europe 3. East-west connections

4. Developing the European Rail Transport Management System (ERTMS) 5. Upgrading metropolitan railway hubs and key national connections 6. Upgrading regional lines 7. Upgrading, electrifying and boosting the resilience of southern railways 8. Improving southern railway stations

The expected benefits include: • greater integration between the national railway infrastructure and regional railways; • expansion and integration of

rail/road services;

• uniform safety standards; • new passenger and freight connections to airports, ports and terminals;

• optimising services offered by integrating High Speed services and local public transport.

By 2026 the investments aim to have reached a significant milestone in the process to build a modern, digitalised, sustainable infrastructure system that can meet the decarbonisation challenge set by the European Union in the European Green Deal strategies and help reach the SDGs set out in the United Nations 2030 Agenda, especially some of them.

Mission

M3: Infrastructure for sustainable mobility

Component C1: Investments in the railway network Contribution to the SDGs of the 2020 Agenda

The sustainability factor of RFI’s investments refers to both the purpose of the works once they are up and running and the planning and building choices and methods. As per the Recovery and Resilience Facility (RFF) for all measures included in NRRPs, for the first time, compliance was checked with the “Do no significant harm” principle set out in Regulation (EU) 2020/852 (the Taxonomy Regulation) which decrees that an economic activity is sustainable if it contributes to at least one of the six environmental objectives set out in the Regulation without causing any harm to the remaining environmental objectives. See the RFI Business Plan for more details on the projects and commercial benefits of the main investments that RFI will roll out over the next five years (2022-2026) thanks to the resources allocated by the NRRP.

The planning was completed for the main railway works with funds of €4.3 billion

By sending the project for upgrading the Potenza-Metaponto section of the Battipaglia-Potenza-Metaponto-Taranto line to the Special Committee of the Superior Council of Public Works, RFI completed all the technical and financial feasibility projects funded by the NRRP on time and using the set methods. These projects are included in Annex IV to Law no. 108/2021, containing the ten strategic national works voted by parliament, for which there is a special assessment and approval procedure.