The
European Investment Bank – EIB, has agreed to provide GBP 100 million
to improve water supply and waste water treatment in the Southern Water
region.
The new 10 year loan represents the first ever loan to
Southern Water by the world’s largest lender to the water sector and the
first support to any UK water company for investment in the 2015-2020
regulatory investment period, AMP 6. The new EIB loan will support
capital investment by Southern Water to ensure reliable a constant
supply of high quality drinking water and effective treatment of waste
water, and improve the quality of bathing water along the south coast.
The
new support was announced during a visit to the Peacehaven Wastewater
Treatment Works by Jonathan Taylor, Vice President of the European
Investment Bank and Matthew Wright, Chief Executive Officer of Southern
Water to see at first-hand how a recently completed GBP 300m facility
treats 95 million litres of wastewater a day from Brighton and Hove. "Our
Business Plan for 2015 to 2020 sets out how we will further improve
water and wastewater services to our 4.6 million customers across Kent,
Sussex, Hampshire and the Isle of Wight. During this period we will be
investing GBP 1.5 billion in looking after the environment, maintaining
and improving our water supply and wastewater treatment works, and
expanding and maintaining our network of water mains and sewers. The
European Investment Bank is an important provider of the finance we need
for the successful delivery of our plan," said Matthew Wright, Chief Executive Officer of Southern Water.
"Long-term investment in water infrastructure is crucial to ensure a
secure supply of safe drinking water and effective treatment of
wastewater for years to come. The impressive scheme at Peacehaven sets a
benchmark for water treatment across Europe and shows how challenges
can be successfully tackled. The European Investment Bank is pleased to
support significant new investment by Southern Water that will benefit
millions of people across the region. We look forward to working with
other UK water companies in the new regulatory period." said Jonathan Taylor, Vice President of the European Investment Bank.
Proceeds of the loan from the EIB will include supporting the GBP 63
million redevelopment of the wastewater treatment works at Woolston (in
Southampton) which will ensure improvement in treated wastewater from
this site meets new standards set by the Environment Agency. Upgrades to
water and wastewater treatment works meet the challenge of a growing
population in the South East, deliver improvement to bathing waters, and
contribute to the mitigation and adaptation of climate change.
Last
year the European Investment Bank provided a record GBP 6 billion for
long-term investment in key infrastructure across the UK, including
support for new hospitals, better water and sewerage infrastructure,
renewable energy and energy transmission and private sector investment.