Michael McGrath (Cork South Central, Fianna Fail)
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616. To ask the Minister for Environment, Community and Local Government the current level of borrowing undertaken by Irish Water; its approximate cost of funds; and if he will make a statement on the matter. [45960/15]

Michael McGrath (Cork South Central, Fianna Fail)
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617. To ask the Minister for Environment, Community and Local Government the approximate level of borrowing Irish Water will have to undertake over the next ten years to fulfil its capital investment programme; and if he will make a statement on the matter. [45961/15]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 616 and 617 together.

The Water Services (No. 2) Act 2013 requires Irish Water to seek the consent of the Minister for the Environment, Community and Local Government (and the Minister for Communications, Energy and Natural Resources, the Minister for Finance and the Minister for Public Expenditure and Reform) to borrow money. Following the commencement of Section 35 of the Water Services (No. 2) Act 2013, the Minister for Finance can no longer guarantee any debts of Irish Water and there is no guaranteed debt in issue.

Ministerial consent has been granted to Irish Water to enter into revolving credit facilities in the amount of €810 million with various commercial banks. Irish Water has informed me that the weighted average margin on these facilities is in the order of 1.5%.

Ministerial consent has also been granted to enter into loan facilities of €450m with the Ireland Strategic Investment Fund on terms broadly similar to its commercial borrowing.

Section 35(1)(b) of the Water Services (No 2) Act 2013 limits Irish Water’s borrowing to €2bn. Irish Water’s current forecast of total borrowing at end 2016 of €1.7bn is within this limit.

Irish Water’s capital investment in the period 2014 to 2021 will be funded by a mix of debt and equity (including capital transfers from Government) with the investment programme for the period after end 2016 being subject to future review by the Commission for Energy Regulation, with Government funding subject to future budgetary decisions. Irish Water’s detailed business plan for the period 2015 to 2021 is available at .