€350 million EIB loan for sustainability investments in Flemish water

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€350 million EIB loan for sustainability investments in Flemish water

De Watergroep agrees €350 million EIB loan for sustainability investments in Flemish water distribution network

(AGENPARL) – gio 14 novembre 2024 JOINT PRESS RELEASE2024-446-EN
Luxembourg/Brussels, 14 November 2024
De Watergroep agrees €350 million EIB loan for sustainability investments in Flemish water distribution network
Flemish water company De Watergroep has agreed a €350 million loan with the European Investment Bank to fund its 2023-2038 investment programme.
The financing will be used to thoroughly renew drinking water infrastructure in Flanders, to ensure the sustainable management of the water cycle.
By improving the network, De Watergroep aims to reduce leakages and energy consumption, supporting the environmental sustainability of its operations.
The European Investment Bank will support De Watergroep in rehabilitating and expanding its network of water supply infrastructure. Watergroep signed a €200 million loan today, as a first part of a €350 million lending availability for the coming five years.

The EIB loan will fund nearly half of de Watergroep’s 2023-2028 investment programme, which focuses on renewing old pipes to minimise leakages, and extending the network by some 800 kilometres to serve new clients. The rehabilitation of the drinking water network will also allow Watergroep to better adapt to climate change risks such as more frequent and longer dry periods.

EIB Vice-President Robert de Groot said: “In Belgium, water is one of the core sectors for our support. We are happy to engage with De Watergroep as a new counterpart. The EIB has made water security and climate change adaptation a priority. Within this ambition we are committed to supporting the efforts of De Watergroep. Our water supply needs to be adapted to a changing climate, notably if very dry and extremely wet periods become more frequent and more extreme. We are happy to join De Watergroep in ensuring that the people of Flanders continue to have reliable access to safe and clean drinking water.”
“This loan enables us to thoroughly modernise our infrastructure and make it future proof.” Said De Watergroep CEO Hans Goossens, “Not every drop of drinking water we produce will also come out of the tap. Leakages and broken pipes cause losses of water along the way. Thanks to this funding we will not only strengthen the resilience of our distribution network, but we also ensure that our over 3.3 million clients can rely on a sustainable and high-quality drinking water supply.”

De Watergroup manages over 34.600 kilometres of distribution pipes, in which the company invested some €136 million last year alone. Investments for renewing the infrastructure have risen sharply in recent years as De Watergroep carries out a policy of proactively renewing waterpipes that have a high chance of leakage. The rehabilitation and upgrading of the network concerns some 3.000 kilometres of pipes throughout the four Flemish regions where De Watergroep is active. De Watergroep will also increase the number of sensors deployed in the network, and increase connectivity of these sensors, to detect leakages and intervene promptly.

Background information:
The European Investment Bank (EIB) is the EU institution for long-term loans. Its shares are held by the 27 EU Member States, with 5.2% owned by Belgium. The EIB makes long-term financing available for sound investments that contribute towards the EU’s policy objectives. In 2023 the EIB provided over €2.1 billion in financing for Belgian projects.

De Watergroep is responsible for the supply of drinking water in large parts of Flanders, and is wholly owned by the regional government, and by the municipalities in which it delivers drinking water. The service area of the Watergroep has a combined population of about 3.3 million inhabitants, covering 177 municipalities in four of the five Flemish provinces. In 2023, drinking water production was about 125 million m3, coming from 91 different production locations. Through Riopact, the company is a partner for municipal waste- and rainwater management, whereas subsidiary Azulatis offers innovative tailor-made water solutions to businesses.

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