Transcript WSTG Annual Conference 2012

Water Services Training Group
16th Annual Conference
Water Sector Reform
Programme
Implementation
INEC, Killarney, 8th November 2012
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Water Sector Reform
Programme Implementation
Capital Programme –
Transition and Funding
Barry Ryan
Principal Officer
Water Services Investment Section,
DECLG
Water Services Investment Programme

Comprehensive review in 2009 with a review
of Priorities, and review conducted in 2011
and schemes added on a case by case
basis during 2012.

In total – 730 contracts now in Programme –
value of some €6bn

Has involved 80-100 contracts under
construction on an annual basis

Programme contains some 386 contracts to
start at a value of €1.9bn and

Some 215 schemes in planning (value of €3
billion)
Water Services Investment Programme - Progress

Since Programme commenced 169 contracts have been
completed – value of almost €900m (Water Con 34 – Water
Supply 61 – Waste Water 74)

83 Contracts are in construction – value of about €758m (Water
Con 22 – Water Supply 32 – Waste Water 29)

Almost 70% of the contracts to start (value of €1.4 billion) have not
yet commenced.

Programme has been rolled over into 2013.
Summary of WSIP at end Q3 2012
Status WSIP
Funding over past decade under WSIP

Capital Funding 20002011
 €5.6 billion
Exchequer Spend
2000-2011 [€ 356m
in EU funding in
period 2000-2006]


Further €1 billion by
local authorities
Capital Funding 2012
amounts to €371m
Impacts – capacity and compliance

Impacts


Waste water Treatment capacity + 3.9m pe, Water Treatment Capacity
+ 1.4m pe
Compliance

Urban Waste water Treatment Directive - 25% (2000) – now over 93%; drinking water compliance:
89.5% for group water schemes - now 97.5%/98.7% depending on whether private or public group
water supply.
Future Needs
Enterprise/Jobs
Compliance with
Statutory
Standards
Water Framework
Directive
Climate Change
Population
Growth
Exchequer Capital – Medium term projections

Profile of available Exchequer capital resources would see
investment falling from €371m in 2012 to €296m in 2016

Future investment requirements (including Investment requirements
flowing from Water Framework Directive) – up to €600m per annum
capital investment required (Independent Assessment).
Capital Programme Work-stream – Milestones and
Deliverables

Transition plan for the management of the capital programme in
the interim phase (by end year)

Development of plan for investment in 2013 integrating WSIP and
RWP (small schemes) - end year

Development of capital investment programme for 2014-2015 (Q2
2013)

Inventory of water services assets (Q2,2013)

Development of an Asset Management Plan for Irish Water
(Q2,2013)
Capital Programme – transition to Irish Water
Guiding



Principles
Establishment of Irish Water is being progressed to increase capital
investment in medium to long-term;
Irish Water will be developing capacity through best practice asset
management systems to exploit economies of scale, thereby improving
VFM and accelerating investment;
Reform process must not create uncertainty in the delivery of planned
projects
Rural Water Programme
Rural Water Programme
Group
Schemes
Water
Small schemes
miscellaneous
Total
&
2000-2011
2012
(Estimate)
2000-2012
€752m
€32.5m
€784.5m
€315m
€10.5m
€325.5m
€1,067m
€43m
€1,110m

Separate work-stream will look at issues for the group water sector

Rural Water Programme (Small Schemes) will become the responsibility
of Irish Water

From 2013, small schemes will be rolled into the multi-annual WSIP
Developing a transition plan

Approach for



Final accounts
Contracts currently under construction
Contracts that have advanced through the planning stages but have not yet
commenced



2013 Departmental Funding
2014-2015 Irish Water developing plan.
Interaction between plans to ensure smooth transition
2013 investment priorities

Criteria to be considered when approving schemes will include:

Economic recovery –



industrial and commercial development needs, IDA support.
Job creation – immediately in the construction of plant and long term in
relation to satisfying needs of industry etc.
Environmental compliance –

EPA RAL list, waste water license requirements, ECJ cases

Water Conservation

Capacity of Local authority to deliver – financial and HR resources in
place

Small schemes to follow the same approach as for 2012
Determining Future investment priorities

Water Services Strategic Plan will outline the long term investment
plans for Irish Water, having regard to:



Delivering on programme of measures in River Basin
Management Plans;
Supporting the implementation of the National Spatial Strategy,
Regional Planning Guidelines and core strategies of City and
County Development Plans
Supporting economic and balanced development.

Corollary of this approach, is that regional planning guidelines,
county and city development plans will have need to take account of
the water services strategic plan.

The strategic plan, will be reflected in Irish Water capital investment
plans forming part of the revenue submissions to CER as part of the
economic regulatory cycle.
Conclusion

Collaborative approach to progressing work on the capital work
stream - Department, input from Transition Office and local authority
experts, with certain work progressed by Bord Gáis (Irish Water);

The focus will be on ensuring momentum of delivery of critical
projects is maintained during the transition.

The aim is to have a robust capital planning function within Irish
Water, with efficient delivery which matched with new funding
sources will accelerate and expand investment in the sector.
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