Project Finance in Theory and Practice, 2nd Edition

CASE STUDY 4

Milan Metro Line 5¹

Stefano Gatti and Simone Mauro

C4.1 Background of the Deal

The Milan Metro Line 5 is one of the infrastructure projects of major public interest included in Law N° 443 dated 21 December 2001 (Legge Obiettivo 2001). This particular project involves the creation of a new metro line in the northern part of the City of Milan, between the Porta Garibaldi and Bignami stations, following a route from Viale Zara to Viale Fulvio Testi.

A public transportation system linking Viale Zara and Viale Fulvio Testi was an idea that dated back to the 1920s. In the early 1990s, however, the city opted to build a tram line rather than an underground line. The proposal to build the Metro Line 5 was advanced only in 1999, subsequent ...