1. 1 Water Services Training Group 17 th Annual Conference Creating a new Irish Water Industry INEC, Killarney, 5 th September 2013

2. Creating a new Irish Water Industry Capital Programme Transition Plan Barry Ryan Principal Officer Water Services, DECLG

3.  Overview of the Water Services Investment Programme to date  Review of the work of the Capital Programme Workstream under the overall Reform Programme  A look ahead to the Capital Programme 2014 -2015 – being led by Irish Water Today’s Presentation

4. Water Services Investment Programme  Comprehensive review of Priorities in 2009 followed by publication of WSIP in 2010  Review conducted in 2011 and schemes added on a case by case basis during 2012 and 2013.  In total – 794 contracts now in Programme – value of some €6.5bn  Has involved 80-100 contracts under construction on an annual basis  Programme contains some 419 contracts to start at a value of almost €1.8bn and  Some 236 schemes in planning (value of €3.6 billion)

5. WSIP Current Status  Since Programme commenced 242 contracts have been completed – value of almost €1.4bn (Water Con 65 – Water Supply 83 – Waste Water 94)  85 Contracts are in construction – value of about €450m (Water Con 33 – Water Supply 26 – Waste Water 26)  Almost 60% of the contracts to start (value of over €1 billion) have not yet commenced.  Programme was rolled over into 2013.

6. Schemes/Contracts in WSIP 2010 - 2013 Status at Q2 2013

7. Exchequer Funding Under the WSIP  Capital Funding 2000-2012  €5.9 billion Exchequer Spend 2000-2012 [€ 356m in EU funding in period 2000-2006]  Further €1 billion by local authorities  Capital Funding 2013 amounts to €326m (includes funding for RWP)

8. Impacts – capacity and compliance

9.  One of the 13 Workstreams established under the Water Sector Reform Programme  Participants - Irish Water Programme, DECLG, WSTO  Key Issues/deliverables included  Development of a high level transition Plan  Development of a detailed transition Plan  Development of the 2014-2015 Capital Investment Programme Capital Programme Workstream under the Reform Programme

10.  High Level Principles/Assumptions  Irish Water responsible for the delivery of capital investment from 1 January 2014  contracts associated with capital programmes will transfer to Irish Water from 1 January 2014  The small schemes programme which is currently part of the Rural Water Programme (RWP) will be also be deliver by IW from 1 January 2014 Transition Plan

11.  Existing schemes fall into four broad categories  Planning Phase – some 236 schemes/contracts  Procurement Planning – some 219 schemes/contracts  Construction Phase – some 85 schemes/contracts  Completed – some 242 schemes/contracts  All will transfer to equivalent categories – Irish Water ‘Gateways’ Transition Plan

12. Department CategoriesIrish Water Gates Planning PhaseGate 1 – Approval to start Concept Design Procurement Planning Gate 2 – Approval to start Detailed Design Gate 3 – Approval to Start Construction Construction Phase Gate 4 – Project Closure Approval Complete Gate 5 – Post Investment Review Approval

13. Irish Water Priorities Investment Drivers Enhancement Enhancement / Growth Enhancement Enhancement / Growth Enhancement Capital Maintenance

14. Investment Planning – 2014-2015 Project Sources WSIP RAL AER Small Capital Strategic Studies Project Decision Trees First stage filter Project Readiness + WSIP in-flight  Potential cashflow Investment Need by Driver Project lists to be prioritised by driver First Draft of Investment Plan 2014 - 2015 Business Case Review with LAs Finalise WSIP Committed Q3 + Q4 2013 Finalise Project Review and Prioritisation Finalise 2014 –15 Investment Plan against Drivers and Funding Constraints Engagement with EPA Maximise environmental benefit within funding constraint Funding constraints will impact progress in 2014-2015 However, it is important to continue the planning of major capital projects to enable investment in 2016-2021

15. Water Quality Priorities Going Forward:  Address parametric exceedences in order of risk (microbiological, chemical, indicator, process efficiency)  Support completion of Water Safety Plans  Resolve issues using interim solutions and cost effective measures Drinking Water Quality and Availability Emerging Priorities

16. Water Availability Priorities Going Forward:  Complete Stage 1 & 2 Projects  Gather all leakage data (pressure, flows, models, leak databases, water audits)  Active leakage management  Customer Side Leakage Policy  Focus where leakage reduction defers capital investment and improves plant performance Water Availability

17. Environmental Compliance:  Urban Waste Water Treatment Directive  EU Pilot Infringement Case  EPA Conditions on Licences:  Water Framework Directive  Sludge Compliance  Infiltration & Ex-filtration Wastewater Availability:  Treatment Plants over current design capacity  Network agglomerations surcharging/ flooding catchments/ properties  Asset Resilience Wastewater Compliance and Availability Emerging Priorities