National Investment in National Investment in Water and Waste Water Water and Waste Water Infrastructure, Funding & Infrastructure, Funding &

PricingPricing

Mid-West Regional Authority Mid-West Regional Authority Annual Conference 2009Annual Conference 2009

Purpose of the Water Services Purpose of the Water Services Investment Programme (WSIP)Investment Programme (WSIP)

The largest The largest component of the Water Services component of the Water Services Programme and it Programme and it delivers the investment for all delivers the investment for all major public water & waste water infrastructure major public water & waste water infrastructure schemesschemes

Department is responsible for prioritising, Department is responsible for prioritising, approving, scheduling and financing individual approving, scheduling and financing individual schemesschemes

Purpose of the Water Services Purpose of the Water Services Investment ProgrammeInvestment Programme

Water Services Authorities (WSAs) are Water Services Authorities (WSAs) are responsible for design, procurement, contract responsible for design, procurement, contract supervision and post-completion, for operation supervision and post-completion, for operation and maintenanceand maintenance

WSAs also responsible for collecting non-WSAs also responsible for collecting non-domestic capital contributionsdomestic capital contributions

Objectives of the WSIPObjectives of the WSIP

WSIP is a major element of the Government WSIP is a major element of the Government strategy for environmental sustainability (esp. re strategy for environmental sustainability (esp. re water quality)water quality)

Compliance with Urban Waste Water Treatment Compliance with Urban Waste Water Treatment DirectiveDirective

Compliance with Water Framework DirectiveCompliance with Water Framework Directive

Objectives of the WSIPObjectives of the WSIP

Conservation and leakage reductionConservation and leakage reduction

Improving drinking water quality to ensure Improving drinking water quality to ensure compliance with EU Drinking Water Directive compliance with EU Drinking Water Directive (and the ECJ Ruling against Ireland)(and the ECJ Ruling against Ireland)

Targeted investment for Targeted investment for EPA’s Remedial Action EPA’s Remedial Action List (RAL) of quality deficient drinking water List (RAL) of quality deficient drinking water schemes which will require capital investment for schemes which will require capital investment for upgrading and increasing treatment capacityupgrading and increasing treatment capacity

Past AchievementsPast Achievements

€€3.6 billion was spent between 2000-2006 3.6 billion was spent between 2000-2006 (including €500 million non-Exchequer)(including €500 million non-Exchequer)

357 major water and waste water schemes 357 major water and waste water schemes completed (inc. Ringsend)completed (inc. Ringsend)

Infrastructure supported residential and Infrastructure supported residential and economic developmenteconomic development

River and lake water quality improved River and lake water quality improved significantly & highest ever number of Blue Flagssignificantly & highest ever number of Blue Flags

WSIP 2007-2009WSIP 2007-2009

Current WSIP made up of 955 projects, with Current WSIP made up of 955 projects, with overall capital value of €5.8 billion.overall capital value of €5.8 billion.

Particular measures include:Particular measures include: Dealing more efficiently with cryptosporidiumDealing more efficiently with cryptosporidium Meeting the e-coli standard in a small number of Meeting the e-coli standard in a small number of

public water suppliespublic water supplies More pro-active mains leakage control and More pro-active mains leakage control and

rehabilitation and other water conservation rehabilitation and other water conservation measuresmeasures

Future Investment PressuresFuture Investment Pressures

Many public water supply networks have little or Many public water supply networks have little or no spare capacityno spare capacity

Continuing weaknesses in water distribution Continuing weaknesses in water distribution networks leading to significant losses through networks leading to significant losses through leakageleakage

Increasing need to protect water quality in our Increasing need to protect water quality in our rivers and lakesrivers and lakes

Existing waste water treatment systems require Existing waste water treatment systems require upgrading to meet national and EU standardsupgrading to meet national and EU standards

Future Investment – Needs Future Investment – Needs AssessmentAssessment

Request for needs assessment for new WSIP to Request for needs assessment for new WSIP to issue later this year, based on:issue later this year, based on:

Continuing need to ensure compliance with EU Continuing need to ensure compliance with EU and national requirementsand national requirements

Focus on the NSS Gateways and HubsFocus on the NSS Gateways and Hubs Contributing to economic recovery and job Contributing to economic recovery and job

creationcreation

Future Investment – Needs Future Investment – Needs AssessmentAssessment

Environmental sustainability, e.g. conservation Environmental sustainability, e.g. conservation and leakage reductionand leakage reduction

Ongoing investment to address the EPA’s RAL Ongoing investment to address the EPA’s RAL listlist

Need to take account of Need to take account of licences being issued licences being issued by the EPA under the Urban Waste Water by the EPA under the Urban Waste Water Discharge RegulationsDischarge Regulations

Strategic PlanningStrategic Planning

Section 36 of the Water Services Act 2007 Section 36 of the Water Services Act 2007 provides for the making of Strategic Plans (SPs) provides for the making of Strategic Plans (SPs) for water services to:for water services to:

Protect human health and the environmentProtect human health and the environment Facilitate the provision of sufficient water Facilitate the provision of sufficient water

services for domestic and non-domestic services for domestic and non-domestic requirementsrequirements

Support proper planning and sustainable Support proper planning and sustainable developmentdevelopment

Strategic PlanningStrategic Planning

SPs should include information regarding the SPs should include information regarding the following:following:

Drinking water qualityDrinking water quality The prevention of risk to human health or the The prevention of risk to human health or the

environmentenvironment Current and projected demand for water Current and projected demand for water

servicesservices Arrangements in place or planned for the Arrangements in place or planned for the

provision of water servicesprovision of water services

Strategic PlanningStrategic Planning

Any shortfalls in the provision of water servicesAny shortfalls in the provision of water services Water conservation measuresWater conservation measures Monitoring arrangementsMonitoring arrangements Asset managementAsset management Financial mattersFinancial matters

Funding Future Water InvestmentFunding Future Water Investment

Government's commitment to capital funding Government's commitment to capital funding evident from 2009 allocationevident from 2009 allocation

Development contributions fall-off will be a factor Development contributions fall-off will be a factor in the futurein the future

Essential that pricing policy (requiring non-Essential that pricing policy (requiring non-domestic sector to pay marginal capital cost) is domestic sector to pay marginal capital cost) is fully implementedfully implemented

Funding Future Water InvestmentFunding Future Water Investment

LAs will need to be rigorous when planning new LAs will need to be rigorous when planning new investment capacity - are population projections investment capacity - are population projections realistic?realistic?

Reduced tender prices should have a positive Reduced tender prices should have a positive benefitbenefit

LAs should engage with industries discharging LAs should engage with industries discharging to sewer to establish realistic design capacities to sewer to establish realistic design capacities and ensure industry is fully aware of the costs and ensure industry is fully aware of the costs involvedinvolved

Water Charges & Meeting the Cost Water Charges & Meeting the Cost of Service Provisionof Service Provision

Government policy – domestic customers cannot Government policy – domestic customers cannot be charged for water services be charged for water services

Policy requires that for all other customers the Policy requires that for all other customers the cost of providing service to be recovered in full cost of providing service to be recovered in full

Metering of non-domestic sector nearing Metering of non-domestic sector nearing completioncompletion

Water Charges & Meeting the Cost Water Charges & Meeting the Cost of Service Provisionof Service Provision

Average charge in 2008 was €2.07 per cubic Average charge in 2008 was €2.07 per cubic metre – average in 2007 was €1.71metre – average in 2007 was €1.71

EU average in 2007 was €3.25 (and some EU average in 2007 was €3.25 (and some exceeded €5)exceeded €5)

Exchequer funding from the Local Government Exchequer funding from the Local Government Fund for domestic sector?Fund for domestic sector?

Collection rates for non-domestic charges, Collection rates for non-domestic charges, conservation and demand reductionconservation and demand reduction

Water Services – Future IssuesWater Services – Future Issues

WSIP to be subject of a Value for Money StudyWSIP to be subject of a Value for Money Study

Long-term water supply issues (GDA, Forfas)Long-term water supply issues (GDA, Forfas)

Water conservation – need to reduce leakagesWater conservation – need to reduce leakages

Water Framework Directive – improving water Water Framework Directive – improving water quality, River Basin Management Plansquality, River Basin Management Plans

Water Services – Future IssuesWater Services – Future Issues

Urban Waste Water Discharges – compliance Urban Waste Water Discharges – compliance with EPA licences and conditions thereinwith EPA licences and conditions therein

Protection of public health – incident Protection of public health – incident management planningmanagement planning

Responding to ECJ Cases (Septic Tanks)Responding to ECJ Cases (Septic Tanks)

Funding – capital and current?Funding – capital and current?

Thank YouThank You

Ivan GrimesIvan Grimes

Water Services PolicyWater Services Policy

Department of the Environment,Department of the Environment,

Heritage and Local GovernmentHeritage and Local Government