Dáil Éireann Debate, Wednesday - 21 January 2015
222. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if he will provide a breakdown of the repayment schedule for the National Pensions Reserve Fund loan used to finance the roll-out of water meters. [3039/15]
View answerThe first phase of the metering programme, covering over a 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 agreed to an increase in the amount of this facility by €50m to €300m late last year. 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. This facility was part drawn at the end of 2013 and was fully drawn down during 2014. As a bridging loan, the loan facility with the NPRF is short term, and will be repayable in a single bullet payment in September 2015 (being two years from the first drawdown). The refinancing of this borrowing is being considered by Irish Water as part of its wider funding strategy. 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.
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. A fee is payable quarterly by Irish Water to the Minister for Finance under the terms of the guarantee provided by the Minister. The guarantee fee is expected to amount to €10.4m over the life of the loan.
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.
