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Irish Water Funding

Dáil Éireann Debate, Wednesday - 26 November 2014

Wednesday, 26 November 2014

Questions (56)

Michael McGrath

Question:

56. Deputy Michael McGrath asked the Minister for Finance the amount Irish Water has drawn down from its loan facility with the NPRF; the full amount of the loan facility; the period of time over which it will be repaid; the interest rate that applies to the loan; if penalty clauses apply in respect of the facility; and if he will make a statement on the matter. [45545/14]

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Written answers

In July 2013, in order to meet expected costs arising,  Irish Water entered into a €250 million bridging loan facility with the National Pensions Reserve Fund Commission (NPRF), which is repayable in September 2015.  This facility was part drawn at the end of 2013 and was fully drawn down during 2014.  Earlier this month, the NPRF agreed to increase the amount available under this facility to €300 million, which has also been drawn down.  As the loan facility was entered into prior to the introduction of full water legislation and the water regulatory regime, the facility was guaranteed by the Minister for Finance in accordance with Section 13 of the Water Services Act 2013. Under the terms of the facility, interest and commitment fees on the loan are rolled-up and added to the amount repayable by Irish Water at the end of the loan's term these rolled up amounts are expected by Irish Water to be approximately €14 million by September 2015.  A fee is also payable by Irish Water to the Minister for Finance under the terms of the guarantee provided by the Minister. To date Irish Water has paid €4.8 million with a further circa €5.6 million expected to be paid over the remainder of the loan's term.  The loan documentation deals with any payment default in a market standard manner.

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