National Investment in Water and Waste Water Infrastructure, Funding

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National Investment in Water and Waste Water
Infrastructure, Funding Pricing

• Mid-West Regional Authority Annual Conference 2009

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Purpose of the Water Services Investment
Programme (WSIP)

• The largest component of the Water Services
  Programme and it delivers the investment for all
  major public water waste water infrastructure
  schemes
• Department is responsible for prioritising,
  approving, scheduling and financing individual
  schemes

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Purpose of the Water Services Investment Programme

• Water Services Authorities (WSAs) are responsible
  for design, procurement, contract supervision and
  post-completion, for operation and maintenance
• WSAs also responsible for collecting non-domestic
  capital contributions

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Objectives of the WSIP

• WSIP is a major element of the Government
  strategy for environmental sustainability (esp.
  re water quality)
• Compliance with Urban Waste Water Treatment
  Directive
• Compliance with Water Framework Directive

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Objectives of the WSIP

• Conservation and leakage reduction
• Improving drinking water quality to ensure
  compliance with EU Drinking Water Directive (and
  the ECJ Ruling against Ireland)
• Targeted investment for EPAs Remedial Action
  List (RAL) of quality deficient drinking water
  schemes which will require capital investment for
  upgrading and increasing treatment capacity

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Past Achievements

• 3.6 billion was spent between 2000-2006
  (including 500 million non-Exchequer)
• 357 major water and waste water schemes completed
  (inc. Ringsend)
• Infrastructure supported residential and economic
  development
• River and lake water quality improved
  significantly highest ever number of Blue Flags

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WSIP 2007-2009

• Current WSIP made up of 955 projects, with
  overall capital value of 5.8 billion.
• Particular measures include
• Dealing more efficiently with cryptosporidium
• Meeting the e-coli standard in a small number of
  public water supplies
• More pro-active mains leakage control and
  rehabilitation and other water conservation
  measures

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Future Investment Pressures

• Many public water supply networks have little or
  no spare capacity
• Continuing weaknesses in water distribution
  networks leading to significant losses through
  leakage
• Increasing need to protect water quality in our
  rivers and lakes
• Existing waste water treatment systems require
  upgrading to meet national and EU standards

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Future Investment Needs Assessment

• Request for needs assessment for new WSIP to
  issue later this year, based on
• Continuing need to ensure compliance with EU and
  national requirements
• Focus on the NSS Gateways and Hubs
• Contributing to economic recovery and job creation

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Future Investment Needs Assessment

• Environmental sustainability, e.g. conservation
  and leakage reduction
• Ongoing investment to address the EPAs RAL list
• Need to take account of licences being issued by
  the EPA under the Urban Waste Water Discharge
  Regulations

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Strategic Planning

• Section 36 of the Water Services Act 2007
  provides for the making of Strategic Plans (SPs)
  for water services to
• Protect human health and the environment
• Facilitate the provision of sufficient water
  services for domestic and non-domestic
  requirements
• Support proper planning and sustainable
  development

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Strategic Planning

• SPs should include information regarding the
  following
• Drinking water quality
• The prevention of risk to human health or the
  environment
• Current and projected demand for water services
• Arrangements in place or planned for the
  provision of water services

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Strategic Planning

• Any shortfalls in the provision of water services
• Water conservation measures
• Monitoring arrangements
• Asset management
• Financial matters

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Funding Future Water Investment

• Government's commitment to capital funding
  evident from 2009 allocation
• Development contributions fall-off will be a
  factor in the future
• Essential that pricing policy (requiring
  non-domestic sector to pay marginal capital cost)
  is fully implemented

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Funding Future Water Investment

• LAs will need to be rigorous when planning new
  investment capacity - are population projections
  realistic?
• Reduced tender prices should have a positive
  benefit
• LAs should engage with industries discharging to
  sewer to establish realistic design capacities
  and ensure industry is fully aware of the costs
  involved

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Water Charges Meeting the Cost of Service
Provision

• Government policy domestic customers cannot be
  charged for water services
• Policy requires that for all other customers the
  cost of providing service to be recovered in full
  
• Metering of non-domestic sector nearing
  completion

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Water Charges Meeting the Cost of Service
Provision

• Average charge in 2008 was 2.07 per cubic metre
  average in 2007 was 1.71
• EU average in 2007 was 3.25 (and some exceeded
  5)
• Exchequer funding from the Local Government Fund
  for domestic sector?
• Collection rates for non-domestic charges,
  conservation and demand reduction

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Water Services Future Issues

• WSIP to be subject of a Value for Money Study
• Long-term water supply issues (GDA, Forfas)
• Water conservation need to reduce leakages
• Water Framework Directive improving water
  quality, River Basin Management Plans

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Water Services Future Issues

• Urban Waste Water Discharges compliance with
  EPA licences and conditions therein
• Protection of public health incident management
  planning
• Responding to ECJ Cases (Septic Tanks)
• Funding capital and current?

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• Thank You
• Ivan Grimes
• Water Services Policy
• Department of the Environment,
• Heritage and Local Government