Dáil Éireann Debate, Thursday - 27 November 2014
208. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the annual interest costs Irish Water will incur on loans taken out to cover the cost of water meter installation; and if he will make a statement on the matter. [45756/14]
View answerThe first phase of the metering programme, covering over 1 million properties is expected by Irish Water to cost €539m excluding VAT.
In July 2013, Irish Water and the National Pensions Reserve Fund Commission (NPRF) entered into a two year €250m bridging loan facility, which benefits from a State Guarantee. The NPRF has recently agreed to an increase in the amount of this facility by €50m to €300m. The provision of the loan allowed Irish Water to progress its establishment, award the meter installation and equipment contracts and to commence and accelerate phase one of the metering programme which began in July 2013 and is expected to be completed in 2016.
The bridging loan facility with the NPRF is repayable in September 2015. This facility was part drawn at the end of 2013 and was fully drawn down during 2014. As the loan facility was entered into prior to the introduction of the Water Service (No. 2) Act 2013 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 approx. €14m 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 and to date Irish Water has paid €4.8m with a further c.€5.6m expected to be paid over the remainder of the loan’s term.
Irish Water is also in the process of raising committed debt facilities from a number of Irish and international banks, the terms of which have not yet been finalised.
Irish Water has established a dedicated team to deal with representations and queries from public representatives and has contacted all Oireachtas members to provide details of an improved level of service which it is aiming to provide. The team can be contacted via email to oireachtasmembers@water.ie or by telephone on a new dedicated number, 1890 578 578.
