1. National Investment in Water and Waste Water Infrastructure, Funding & Pricing Mid-West Regional Authority Annual Conference 2009

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. Future Investment – Needs Assessment  Environmental sustainability, e.g. conservation and leakage reduction  Ongoing investment to address the EPA’s RAL list  Need to take account of licences being issued by the EPA under the Urban Waste Water Discharge Regulations

11. 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

12. 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

13. Strategic Planning  Any shortfalls in the provision of water services  Water conservation measures  Monitoring arrangements  Asset management  Financial matters

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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?

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