NI Water has repeated its concerns over the impacts that underfunding over many years has had on aging water and sewerage infrastructure and again emphasised the need for full funding of its 2021/22 to 2026/27 investment programme.
NI Water met with Mid Ulster District Council representatives on Thursday last week to provide an overview of NI Water’s planned infrastructure investments, challenges and development constraints going forward for the Council area.
In its local development plan, Mid Ulster District Council has anticipated that it will need 11,000 new homes by 2030. The towns of Cookstown, Dungannon and Magherafelt will be the main Hubs for growth, with predictions that 8,500 new jobs will be created.
At the meeting, NI Water outlined that it is looking at how these plans may be accommodated, and also explained they will look at ways to help where they can in the short to medium term. NI Water emphasised its commitment to finding solutions and exploring all available options to work with Councils and developers to progress the Council’s ambitions for the people in their area.
NI Water’s Head of Investment Management, Stephen Blockwell, said:
“NI Water’s goal is to ensure we have a modern, efficient service today and in the future. While Investment is needed urgently, NI Water has a plan in place and we are ready and capable to deliver.”
At the meeting, NI Water explained its goal is to help progress and facilitate future economic development and the necessity of funding NI Water appropriately to allow the NI Government / Executive to meet its medium and long term objectives for economic growth.
Dr Blockwell continued:
“NI Water is ready to provide engineering solutions to short term constraints where possible. However, the full funding identified by the Utility Regulator in its Final Determination (PC21) is required, to fulfil the vision of economic expansion for the people in our towns and cities.
“This is not a ‘wish list’ or a ‘nice to have.’ This is the blueprint that will help us ensure NI Water can deliver in a strong, modern regional economy.
“Our infrastructure plans over the 2021 – 2027 period (known as PC21) for the Mid Ulster District Council area requires ca £90 million pounds of investment to upgrade wastewater assets. This is over and above essential base maintenance investment associated with our assets during PC21. This investment will begin to address the sewer and wastewater capacity issues. However, we recognise that significant further investment will be required within the Council area during future Price Control periods to allow new housing and business development to proceed in some areas.”
“Funding levels made available to NI Water in recent price controls have not been sufficient to stem the degradation of assets"
NI Water’s Business Plan for the PC21 Price Control period (April 2021 to March 2027) set out what it described as the step change in investment required - a capital investment of around £2.5 billion. NI Water commented in its Plan:
“Funding levels made available to NI Water in recent price controls have not been sufficient to stem the degradation of assets.
“As a result, our infrastructure is having widespread detrimental impact on the economy, by severely limiting development across the country in 25 of the 27 economic hubs identified by local councils for growth in the future.”
The Northern Ireland Utility Regulator in its Final Determination on the water company’s PC21 Business Plan allowed NI Water an increase in capital investment to £2.1 billion - an increase of 74% from the previous PC15 price control period.
Dr Blockwell added:
“NI Water has highlighted the impact underfunding has had on our Economy and the Environment for many years and that this will take a number of price controls to rectify (18+ years). The message is clear. NI Water has an ambitious plan and significant and sustained investment is needed for wastewater and water infrastructure across Northern Ireland."
The Utility Regulator is currently in the process of conducting a Mid-Term Review of its PC21 Final Determination. The consultation version of its draft report will be published on 18 December 2023 with the deadline for responses of 19th January 2024. The Utility Regulator will publish its final report w/c 19 February 2024.
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