Michael McGrath (Cork South Central, Fianna Fail)
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620. 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. [45977/15]

Alan Kelly (Tipperary North, Labour)
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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 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 for loan facilities of €450m with the Ireland Strategic Investment Fund on terms broadly similar to its commercial borrowing.

Irish Water have confirmed to me that the all inclusive annual interest cost on loan facilities taken out to cover the cost of water meter installation is currently less than 2%.