Water & Wastewater Treatment

Q: What are the most pressing priorities for improving water infra- structure in Ireland? A: Ireland has abundant surface water and groundwater resources and has a relatively low "water stress" level relative to some other European countries. Water quality in Ireland generally compares favourably with other European Countries. Translating this compara- tive advantage into the sustainable develop- ment of the sector and thereby contributing to economic recovery, has been constrained by a number of inefficiencies in the previous organisational model and the lack of a sustain- able funding model. While there have been considerable improvements in the infrastructure over the past decade, the legacy of historical under-in- vestment in the sector has led to uneconomic levels of unaccounted-for water in the public water system; risks to a significant number of water supplies which need to be addressed through upgrades; deficiencies in some areas in drinking water capacity; and inadequate waste water treatment in a number of towns. An essential ingredient in improving the public water infrastructure is the move to a public utility model which can gain economies of scale, adopt a national asset management approach, introduce efficiencies in operation and source additional funding from capital markets, leveraging the new source of revenue from domestic water charges. This is why Irish Water has been established. The Government has o en cited the need for €600M a year in capital investment over the coming decade to address infrastructural defi- ciencies. This will require a significant increase from the circa €300M level we've seen in recent years, but Irish Water is well positioned to do this. This year will see a significant in- crease in investment. €410M represents a 21% increase last year's investment level. Q: How is your department sup- porting Irish Water during the cur- 28 | MArCh 2015 | WWT | www.wwtonline.co.uk In the know Q&A: water management in Ireland A unified approach Ahead of her appearance at WWT's Water Ireland conference, Maria Graham discusses the progress of Ireland's water sector reforms rent period of transition? A: The first capital plan for Irish Water was ap- proved as part of the first regulatory cycle. The regulator, the Commission for Energy regulation (CEr), approved the overall plan of €1.77BN for 2014-2016, and funding has been identified at this stage for some €1.3BN of this plan. The Govern- ment is supporting the utility in achieving this programme in a number of ways, including in the form of capital contributions by the Minister for Finance, to the value of €645M, which are being made over the period to end 2016. Irish Water has been interacting with banks with a view to borrow- ing, which represents an important move towards delivering on the additional investment required over the period ahead. The early implementation of the Irish Water capital plan reflected the fact that Irish Water had taken over responsibility for a series of inflight projects which had been included in the Depart- ment's multi annual Water Services Investment Plan for 2010-2013. As we move forward into 2015, the focus will shi to projects selected and developed through Irish Water's asset manage- ment approach. Q: How will the new model for water provision in Ireland ensure better asset management happens? A: One of the benefits of the utility model is that we now have a single national utility planning infrastructural delivery, in contrast to the old system of 34 local authorities submitting plans to the Department for inclusion in a national plan. Taking a long-term, national approach, combined with a whole-life cost perspective when prioritising investments, should help ensure better value-for- money. New approaches to asset management should also optimise the life spans of assets as well, leading to greater value for money. Even over the past year, we have seen how the regula- tory model matched with appropriate asset man- agement systems can lead to savings based on modular approaches to upgrading plants, at lower cost than previously planned approaches. The combination of economic and en- vironmental regulation – from the CEr and the Environmental Protection Agency (EPA) – should provide a strong impetus to Irish Water to deliver the best outcomes from its asset base. In its monitoring of water services, the EPA has encouraged a risk and outcome focus to addressing environmen- tal compliance. This provides an important platform to guide investment by Irish Water. Central strategic planning based on accurate asset performance data and full control of all investment decisions will be the hallmark of the new model. Q: How long will it take before the transformation is complete and what is the next phase? A: It is important to recognise the scale of the transformation which has already occurred. It is not quite three years since the announcement to establish Irish Water within the Ervia group. Since that time, legislation has been enacted, the company established, service level agreements with local authorities agreed in a manner which has ensure continuity of service throughout a period of significant organi- sational change. At the same time, a major programme of domestic metering has been rolled out with approximately 600,000 meters installed since August 2013. There have been significant achieve- ments, but the transformation continues. The Government's water sector reform im- plementation strategy envisaged a 'steady state' environment for the new utility by 2017. By 2017 significant progress should have been made in delivering infrastruc- ture, improving asset management, and providing a more efficient water service. With the commencement of billing of the domestic sector from April this year, the quality of engagement with customers will be critical. Customers need to be assured that they are getting a good quality service and that quality investment decisions are being made. Maria Graham is speaking at WWT's Water Ireland Conference on 19th March 2015 at the Pillo hotel in Ashbourne. For details and to book your place visit www. wwt-ireland.net MarIa GraHaM ASSISTANT SECrETAry For WATEr AND PlANNING, DEPArTMENT oF ThE ENvIroNMENT, CoMMuNITy AND loCAl GovErNMENT

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