ITALY’S MEZZOGIORNO: Valuable Opportunities in Infrastructure Development
by Albina Parente
U. S. & Foreign Commercial Service, Naples, Italy

The south of Italy is rugged and beautiful with breathtaking scenery, picturesque beaches, charming seasides and rural villages. Major cities such as Naples and Palermo have been famous for millennia for their attractive locations, warm breezes and friendly people. Italians call the land south of Rome the "Mezzogiorno d’Italia," which simply means "the south," and since ancient times it has been at the crossroads of trade and commerce. Now, for American companies, the Mezzogiorno offers a new set of opportunities, particularly in the infrastructure development area.

Historically, the Mezzogiorno was agricultural land, and today, it is rightly famous for the lemons, vineyards and olive groves dotting its countryside. Local conditions, together with these agricultural traditions, meant that, for the most part, the Mezzogiorno missed out on many aspects of the Italian economic "miracle" of the 1950s and 1960s. Heavy and medium industries changed the economic reality of the region, with large aerospace, automotive, computer, chemical and other manufacturing concentrations leading the way. However, with the decline in the early 1990s of Italian Government development funds and the lack of export-generating industries as found in the north, the Mezzogiorno saw a period of economic stagnation. The people of the Mezzogiorno are ready to leave this period behind and join in the economic growth of other parts of Italy and elsewhere in Europe.

A NEW FOCUS ON TOURISM AND INFRASTRUCTURE

The natural beauty of the south, combined with year- round pleasant temperatures, has led the Italian and local authorities to focus development efforts on the travel and recreation sectors. There are plans to construct marinas, high- quality hotels and holiday villages for family tourism, as well as introduce new types of tourism such as Eco- tourism, adventure travel and virtual reality parks. Parallel development of highways, roads, airports, railways and other basic infrastructure must take place to realize tourism objectives.

The Italian Government is still a driving force in southern Italy's economy and continues to provide incentives for tourism infrastructure projects. In addition, the European Union has allocated structural funds — grants up to 60 percent of a project's value — for infrastructure development in various regions of Italy, including the Mezzogiorno. Regional governments will administer these funds for viable, approved projects. In certain cases, the Italian Government will provide matching grants. In a major infrastructure project, the Italian Development Agency (Sviluppo Italia) can serve as a minority shareholding investor. In addition to development, there are many opportunities for U. S. companies in feasibility studies, marketing, franchising, management services, architectural conservation and tourism infrastructure- related services.

EDUCATING PARTNERS, CREATING BETTER CONSUMERS

The relative lack of expertise among local organizations and businesses in designing, presenting and negotiating projects remains a major constraint. Consultants and others with experience in project management are encouraged to take serious consideration of the Mezzogiorno.

The U. S. Mission to Italy has made a major goal of helping American companies get a share of business opportunities in the south, including development of Mezzogiorno infrastructure. The U. S. Commercial Service in Italy and its Mission partners provide technical assistance to Italian businesses on developing business plans and partnerships with U. S. companies. By helping Italian firms and local governments to partner with U. S. firms on promising projects, the Mission seeks to expand American exports. Former U. S. Ambassador to Italy, Thomas M. Foglietta’s "Initiative for the Mezzogiorno" has been the centerpiece of efforts to expand mutually beneficial opportunities for U. S. and Italian businesses in this region. The Mission is working to increase the American business presence in southern Italy by improving project planning by local governments and addressing bureaucratic barriers.

RECENT OPPORTUNITIES, FUTURE POSSIBILITIES FOR U.S. BUSINESSES

In early 1999, a delegation from 20 southern Italian communities and businesses, recruited by the U. S. Commercial Service and Consulate General in Naples attended the International Tourism Infrastructure Conference (ITIC) in Athens. Because of the enthusiastic response of the Italian participants, a follow- up infrastructure trade mission visited Naples from October 30- 31, 2000. As follow-up to these missions, numerous

American developers and service providers have visited the region to conduct site surveys for hotels, golf courses and marinas, among others things.

Major projects are now in the works at many sites around southern Italy such as the Neapolitan Aqueduct Project, the Grazzanise Regional International Airport development and design and numerous holiday village infrastructure projects in Puglia, Calabria, Sicily and Camania. These are all opportunities that American exporters can use to their advantage. Relevant contact information for each of these projects can be found in the sidebar.

CAPITALIZING ON STRENGTHS OF SMALL AND MEDIUM-SIZED AMERICAN FIRMS

In addition to the tourism initiatives, U. S. Commercial Service Italy is working with the U. S. Small Business Administration to plan an Information and Communications Technology matchmaker trade mission to southern Italy in May 2001. Sviluppo Italia, the Italian Development Agency, has agreed to serve as a local facilitator. The trade mission will visit two southern Italian cities, Naples and Catania, both with active and growing information and communications technology industries. This will be the first mission of its kind in Italy, setting the stage for similar missions focusing on other sectors.

TAKING ONE STEP AT A TIME…

Although U. S. firms may prefer to start operating in Italy on a smaller scale, success in initial ventures can have a significant multiplier effect — that is, open up opportunities for a larger market presence in the future. In the end, the possibility of working side- by- side with Italian local businesses and government entities provides the opportunity to showcase advanced U. S. experience, technology and services.

CONTACT INFORMATION

U. S. businesses wishing to know more about the exciting commercial opportunities in Italy are encouraged to contact
U. S. Commercial Service at the American Embassy in Rome
Tel: (39 06) 4674-2382;
Fax: (39 06) 4674-2113;
Email: Rome.Office.Box@mail.doc.gov or

The Commercial Service at the American Consulate General in Naples
Tel: (39 081) 583-8206;
Fax: (39 081) 761- 1592;
Email: Naples.Office.Box@mail.doc.gov

Trade specialists are ready to assist in U.S. business efforts.

The following are also valuable sources of information on export opportunities in Italy.

The Neapolitan Aqueduct Project
Prof. Mario Rosario Mazzola
Executive President SOGESID-
Waterworks Management Company
Via S. Nicola da Tolentino, 5
Tel: (39 06) 4878-5306
Fax: (39 06) 483574
Email: sogesid.p@ntt.it

The Grazzanise Regional International Airport
Ing. Antonio Crispino
President Industrialists Union
Via Roma, 17 Caserta
Tel: (39 08) 2332-5422
Fax: (39 08) 2332-6337

Holiday Village Infrastructure Projects
Dr. Eutimio Tiliacos,
Director- Sviluppo Italia S. P.A.
Via Calabria 46, Rome
Tel: (39 06) 4216-0901
Email: etiliacos@sviluppoitalia.it

Sviluppo Italia is the Italian National Development Agency for the Mezzogiorno. The agency may be contacted via Email: info@sviluppoitalia.it or by the web address www.sviluppoitalia.it

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