1 June 2006
EIB loan for water infrastructure improvements
The European Investment Bank (EIB) has signed a loan of £59 million in support of Water Service’s large-scale investment programme to upgrade and expand Northern Ireland’s water infrastructure. The project will improve the quality of drinking water, in accordance with EU legislation. Under the first major Private Public Partnership (PPP) in the drinking water sector in Northern Ireland, the EIB will provide funding alongside RBC Capital Markets and ING to the private sector partner, Dalriada Water Ltd, a special purpose company selected following an international call for tender. Dalriada is owned by Kelda Water Services Ltd, a subsidiary of Kelda Group and Earth Tech. It will design, build, finance and operate four upgraded water treatment works, under a 25-year contract granted by the Department for Regional Development Water Service. The project will provide about 50% of Northern Ireland’s water capacity and ensure full compliance with two EU directives on drinking water.