Dr Len O’Hagan, NI Water Chairman is warning that NI Water is ready to meet the challenges that lie ahead, but without the necessary funding, the infrastructure is ready to burst at the seams.

The stark message was outlined in a speech by Dr Len O’Hagan, NI Water Chairman, at the launch of the company’s Annual Report for 2018/19 and the company’s Draft Strategy 2021-2046.

According to Dr O’Hagan, since NI Water was established in 2007, the recommended level of funding from the independent Utility Regulator has been met by Government in just three of the intervening years.

Underfunding of the company’s PC15 business plan 2015-21 (£990m actual versus £1.7bn required) has already resulted in curbs to economic development - new housing and businesses have been unable to get connected to the sewerage system in around ninety-nine areas throughout the province.

The NI Water Chairman warned his audience that the growth of Belfast City, the primary economic engine of Northern Ireland, would struggle unless the £1bn investment in strategic drainage, under the Living with Water Programme, is supported.

“The City Deal risks not realising its full potential. Put bluntly, no drains means no cranes.

“However, there is a window of opportunity to invest properly in our water and sewerage infrastructure. To remain fit for purpose, we calculate that the sum is £2.5bn, including £1bn to address used water, flooding and drainage problems in Belfast alone.

“Funding at this level will not solve all of the issues, but it will allow us to address 70% of our used water capacity problems whilst protecting drinking water and enhancing environmental protection.”

Dr O’Hagan called for the Department for Infrastructure and the Department of Finance to develop options on how to provide good governance and sustainable financing solutions for water security in Northern Ireland by engaging with industry experts.

Northern Ireland is unique within the UK as being the only part where the regulated water utility is unable to fully implement the economic regulator’s final determination due to public expenditure constraints.

Commenting on the issue, the Annual Report says :

“NI Water is in the unique position of being the only publicly funded, regulated utility in the UK. While this has some benefits in relation to access to low cost debt financing for example, it is posing challenges in relation to being able to support a sustainable funding model.”

“As a Government Owned Company and a Non-Departmental Public Body, NI Water is subject to public expenditure cuts and uncertainty over funding. While this may be manageable for a short period, the continued underfunding of the Utility Regulator’s regulatory settlements places progress on efficiencies at risk and could result in tangible impacts on service delivery, the local economy and the environment.”

Over the past 15 years the capital budget made available for investment in sewerage services has not been able to keep pace with the investment required to provide increased capacity to facilitate growth or achieve more stringent standards to achieve water quality targets.”

“As a result, many of our sewerage networks and treatment plants are now having to operate at or beyond their design capacity, limiting opportunities for new connections and constraining economic development. We are working with principal stakeholders to agree a capacity framework against which future applications for new connections will be assessed. This includes communicating these constraints spatially so that this can inform development plans by others.”