Irish Water Plans €5.5bn Spend in Next Five Years

Irish Water plans €5.5bn spend in next five yearsmhas borrowed €200m and seeks 500,000 boxes for water meters

The loan, which is to the company's parent Ervia, was approved in December with contracts expected to be signed over the coming months.

A spokesman for the EIB said the loan was approved because the EIB saw Irish Water as a company with the "technical and financial strength" to repay.

The move comes as the utility continues work on the water network despite political uncertainty as to whether it will be abolished as a condition of Fianna Fáil entering government.

The utility has also sought tenders to provide 500,000 meter boxes from late next year, which would allow the company to continue the metering programme.

The so-called boundary boxes are installed in the ground before meters are placed in them.

Due to take effect from the beginning of 2017, the contract covers domestic, non-domestic and mixed-use customers.

Mixed-use customers live in a business premises, for example farmers or people living above the shop.

The contract notice, which was published on the State's e-tenders website, is looking for suppliers to provide the boxes over four years.

A total of 500,000 units will be needed over the course of the contract, up to 200,000 per year. The likely cost is not provided.

A spokeswoman for Irish Water said the contract was for all boundary boxes needed for water installation.

"Current frameworks will expire from end 2016 so this is to have suppliers in place for when they do," she said.

"Boundary boxes will be for domestic, non domestic and mixed use customers. For example we estimate 20,000 to 30,000 non domestic mixed use customers are yet to be metered."

Irish Water plans to spend €5.5bn between 2013 and 2021 on the network, including upgrading and replacing plants, water mains and sewers, and eliminating leaks and lead piping.

The EIB loan was approved because there was a need for "long-term investment" in the sector, a bank spokesman said, adding that more funding could be approved at future dates.

Some €200m will be provided, to part-fund works totalling €520m.

"We are one of the world's largest lenders to water, and we are the largest lender to the UK," he said.

"Over the last five years, we've provided €21bn in water investment worldwide. Of that, €18.3bn is across Europe. And €5.4bn in the UK since 2010.

"In Ireland, there is an investment need on the water networks, but also flood related investment. Basically, from our side as a long term lender, water is a very obvious sector for us to be engaged with.

"We are aware of the sensitivities in Ireland around water charges, but recognise the importance of long-term investment. The principle has been approved and the amount. We expect that to be distributed later this year."

The EIB supported investment in the water sector in the 1980s and 1990s, and the most recent loans totalling €200m were issued in 2012 and 2014.

The EIB has an AAA credit rating, meaning it can borrow money at competitive rates. The spokesman said these rates were passed onto clients.

The EIB is limited to providing up to half the project cost, and the spokesman said that more funding could be sought at a later date.

"We could lend €100m now, and more when it's needed. There will be an ongoing investment programme which we can look at. From our side, we see it as a sound investment and we recognise the clear need for water infrastructure across the bloc and Ireland.

"There is technical strength and financial strength of the model, so we can be paid back."

Source: Independent

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• Water Utility
• Water Management
• Governance & Planning