Will Italy compensate Silk Road Fund for Autostrade concession?

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Italy Will Offer Compensation to Silk Road Fund for Autostrade Concession

The Italian government has communicated to the Silk Road Fund, a Chinese shareholder in Autostrade per l’Italia, that compensation will be provided if the decision is made to revoke the toll-road operator's motorway concession. This assurance was conveyed by Industry Undersecretary Michele Geraci during discussions, emphasizing that the process would be regulated and would not involve expropriation, thereby preserving the rights of all stakeholders.
Procedure for Concession Revocation Underway

The Italian government has initiated a formal procedure to revoke the concession contract with Autostrade, citing severe negligence in bridge maintenance following the deadly bridge collapse in Genoa on August 14. This procedure is anticipated to last a minimum of five months, during which Autostrade is afforded the opportunity to present its defense against the allegations.
Compensation for Investments Expected

Should the government ultimately revoke the concession and prevail in any subsequent legal appeals, it is estimated that compensation for investments made in the motorway network would range between €15 billion and €20 billion. This figure reflects the significant capital expenditure associated with maintaining and developing the extensive motorway infrastructure managed by Autostrade.
Emphasis on Regulated Procedure Over Punitive Action

Industry Undersecretary Michele Geraci explicitly stated that the government's approach would not be punitive but rather a regulated procedure. He assured the Silk Road Fund that while nationalisation of the motorways is being considered, it does not equate to expropriation, and all stakeholders' rights would be upheld throughout the process.

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Will Italy compensate Silk Road Fund for Autostrade concession?

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