The European Investment Bank (EIB), the long-term lending arm of the European Union, is lending £100 million to Dwr Cymru Welsh Water for a series of water supply and wastewater treatment schemes across Wales.

The EIB is supporting the second phase of Welsh Water’s 2005-2010 investment programme which will ensure continued compliance with EU and domestic standards. The EIB-funded projects which will be undertaken by Welsh Water in the period 2008-2010 will improve living standards for Welsh citizens thanks to essential upgrades in water treatment and improved sewage and wastewater infrastructure.

“Water and wastewater projects are a priority for the EIB”, said Simon Brooks, EIB Vice President responsible for lending activities in the UK; “so much so that in August 2008 we renewed our water lending policy to ensure it remains in touch with the ongoing developments and challenges of this important sector. Over the past 17 years the EIB has enjoyed a successful relationship with Welsh Water and we look forward to supporting the environmental improvements and measurable benefits to the quality of customer drinking water that this investment programme will provide.”

Chairman of Dwr Cymru Welsh Water Lord Burns said, “I’m delighted that the European Investment Bank has agreed to provide a further £100 million financing of our water and wastewater improvement programme. The EIB continues to be a very important source of secure finance for Welsh Water, especially in these times of turmoil in the financial markets. We look forward to continuing to work with the EIB in the future.”

The project will consist of the rehabilitation or construction of numerous wastewater treatment schemes and a comprehensive water mains replacement programme across Wales. New water pipes and upgraded water treatment plants will improve drinking water and receiving coastal and inland water bodies will no longer be at risk from untreated discharges.