Michael McGrath (Cork South Central, Fianna Fail)
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208. To ask the Minister for 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]

Alan Kelly (Tipperary North, Labour)
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The 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 or by telephone on a new dedicated number, 1890 578 578. 

Michael McGrath (Cork South Central, Fianna Fail)
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209. To ask the Minister for Environment, Community and Local Government the estimated gross cost of water services including operating expenses and capital investment in 2015; and if he will make a statement on the matter. [45758/14]

Michael McGrath (Cork South Central, Fianna Fail)
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213. To ask the Minister for Environment, Community and Local Government the cost to the projected capital investment by Irish Water in each year from 2014 to 2019; and if he will make a statement on the matter. [45762/14]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 209 and 213 together.

The establishment of Irish Water is an integral component of the Government’s water sector reform strategy and involves major organisational change. The establishment of a high performance utility will lead to lower costs and improved services in the future, providing much better outcomes for customers and the environment.

Details of Irish Water’s costs are outlined in their revenue and water charges plan which was reviewed by the Commission for Energy Regulation (CER). Details of the review and the CER’s decision are available at .

The CER imposed an annual efficiency challenge of 7% on Irish Water’s costs as submitted and following the Government announcement of 19 November, an adjustment to operational costs will be made to reflect the proposal that water services infrastructure will be exempt from commercial rates. A note on the financing of Irish Water in 2015 and 2016, reflecting this position, has been published on my Department’s website - .

Irish Water has published its Capital Investment Plan 2014-2016 and this is available online at .

The plan identifies where Irish Water considers investment in infrastructure is necessary for the effective performance of its functions, including compliance with Water Framework Directive requirements, improving sewage treatment and collection infrastructure in accordance with the Urban Wastewater Treatment Directive, responding to judgments of the European Court of Justice and achieving environmental and public health objectives arising from various regulations and EPA reports dealing with water quality.

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 or by telephone on a new dedicated number,1890 578 578.