L 129/30 Official Journal of the European Communities 22.5.1999 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 16 September 1998 authorising subject to conditions, aid granted by Italy to Societa Italiana per Condotte d’Acqua SpA (notified under document number C(1998) 2858) (Only the Italian text is authentic) (Text with EEA relevance) (1999/338/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having given notice to the parties concerned to submit their comments ('), in accordance with the aforemen- tioned provisions, Whereas: Societa Italiana per Condotte d’Acqua SpA (Condotte) is a company operating in engineering and civil infrastructure construction (roads, railways, etc.); it was previously the property of Iritecna SpA (Iritecna), a wholly owned subsidiary of IRI SpA (IRI), which was in its turn wholly owned by the Italian Treasury. In 1993 IRI, which wished to restructure its engineering and construction activities, decided: — to put Iritecna into liquidation, at a total cost of ITL 4 490 billion (ECU 2,3 billion), and () OJ C 327, 29.10.1997, p. 4. — to set up a subholding company, Fintecna (Fintecna), which was to privatise Iritecna’s profitable businesses. Condotte recorded losses totalling ITL 152 billion over the period from 1991 to 1994. Its gross profit margin fell from 11 % of turnover in 1991 to 4,5 % in 1994, with a low point of 2 % in 1993. The shareholders repeatedly had to make up the company’s losses, at a total cost of more than ITL 118 billion (ECU 61 billion). Despite its losses, Condotte was considered to be poten- tially attractive to private investors, largely because of the size of its order-book; the main items in the order-book derived from Condotte’s membership of the Iricav 1 and Iricav 2 consortia, the contractors for the Rome-Naples and Verona-Venice stretches of the projected Italian high- speed rail network. Iritecna’s controlling stake in Condone, which amounted at that time to 91,7 %, was accordingly transferred to Fintecna, with a view to privati- sation. The restructuring measures which Condotte now under- took, reducing its workforce from 1 500 to less than 1 000, writing down the value of work in hand, etc, together with the prospects generated by the resumption of work on the high-speed rail network, led Fintecna to