Michael McGrath (Cork South Central, Fianna Fail)
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198. To ask the Minister for Environment, Community and Local Government the level of debt Irish Water will take on; and if he will make a statement on the matter. [47686/14]

Alan Kelly (Tipperary North, Labour)
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The Water Services Act 2013 and the Water Services (No. 2) Act 2013 provide that Irish Water may borrow money for the purposes of carrying out its functions but before borrowing any money, the consent of the Minister for the Environment, Community and Local Government, the Minister for Finance, the Minister for Communications, Energy and Natural Resources and the Minister for Public Expenditure and Reform is required.

Consent for Irish Water to enter into a two year €250 million bridging loan facility with the National Pensions Reserve Fund was provided in July 2013 and this loan facility was recently extended by €50 million to €300 million by further ministerial consent. Ministerial consent was also given to Irish Water to enter into an overdraft facility with a commercial bank in the amount of €50 million on 8 October 2014.

In accordance with the Water Charges Policy Direction 2014, the Commission for Energy Regulation has included a figure of €200 million for the transfer of balances from local authorities to Irish Water in Irish Water’s opening Regulated Asset Base (RAB).

This estimate of €200m includes both financial and non-financial amounts, and is subject to further verification and due diligence by Irish Water. To the extent that any local authority financial balances transfer to Irish Water in 2015, it is anticipated that it will be less than the €200 million estimate.

It is anticipated that significant levels of debt with be raised by Irish Water over the years ahead to underpin a strong programme of investment in water services infrastructure. To this end, Irish Water is currently 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.