Institutional portal - Municipality of Milan

Milan, July 20 2021 – The City Council approved the modification of the art. 4.1 of the Statute of MM SpA and the guidelines for the entrustment of the management of the city's green assets to MM Spa starting from the second half of 2022. The assignment envisages a start-up phase of the service with characteristics similar to those envisaged today by the global service contract in terms of performance, managed square footage and guaranteed standards. We will then move on to a second phase which includes, in addition, the pursuit of innovative objectives of valorising and improving the quality of the city's green areas, with energy requalification interventions, circularity of materials and development of dedicated systems, in addition to the creation of green infrastructures.  

Management will require the acquisition of human and instrumental resources, the provision of a dedicated corporate structure and detailed controls for the Municipalities. The hiring of approximately 200 resources with specialist skills is expected, supported by a further 50 seasonal operators to manage the peaks of activity linked to the summer season. The assignment will have a time horizon of 25 years and provides for a fixed fee of 12,8 million euros per year for ordinary maintenance, and up to 3,5 million for extraordinary maintenance. To this, a variable fee can be added for a maximum amount of 320 thousand euros based on the performance recorded.

Furthermore, the current approach aimed only at verifying compliance with the required standards will be overcome, with the application of a penalty mechanism in the event of total or partial non-compliance with the standards themselves. MM SpA will gradually take over the management of the municipal green assets, with a start-up phase in which the company will take over from the current operator.

Article 41 of the Statute of MM SpA, necessary for the award, is therefore modified through the insertion, at the end of point a) of the phrase "the management of green areas, including all redevelopment and maintenance interventions of the aforementioned areas". 

The municipal administration reserves the right to proceed with the termination of the Agreement for the assignment of the city greenery management service to MM SpA, if there is a change in the shareholding structure of the same company or other corporate change such as to eliminate the nature of MM SpA as company operating under the in-house providing regime for the Municipality of Milan. This provision is aimed at protecting the public nature of the city greenery management activities as well as the direct assignment model to MM SpA, under the inter-organisational delegation system.