The European Investment Bank has agreed to support ambitious
investment by United Utilities that will improve water supply and
wastewater management that will take account of predicted climate change
and demographic developments. Agreement for GBP 400m (EUR 465m) funding
from the European Union’s long-term lending institution was signed in
Manchester by Russ Houlden, United Utilities’ Chief Financial Officer
and Simon Brooks, European Investment Bank Vice President for the United
Kingdom.
The European Investment Bank is the largest lender to the UK water
sector and this funding will benefit 6.8 million people across
North-West England through individual schemes to improve drinking water
quality and enable more energy efficient treatment of wastewater. The
funding will include support for projects that take account of the
potential impact on water and wastewater of extreme weather events and
climate variability over a 25 year period and form the first phase of
United Utilities’ capital expenditure programme for the 2010-2015
regulatory programme.
"Large-scale specialist investment that addresses risks from a
changing climate is essential to ensure clean tap water and safe
wastewater management for future generations. The European Investment
Bank is committed to ensuring that long-term investment by UK water
companies can best prepare for climatic uncertainties, alongside
increasing energy efficiency in the sector." said Simon Brooks,
European Investment Bank Vice President responsible for the United
Kingdom. Russ Houlden, Chief Financial Officer at United Utilities,
added: "Our current investment programme is the largest we have ever
undertaken, and funding like this is vital to secure the improvements
that our customers expect and that the environment deserves. The EIB is
the biggest single investor in United Utilities and this is
cost-effective funding that provides real value for money for our
customers. Given the present financial climate, it is really encouraging
to see European money helping to deliver the essential new
infrastructure that will improve the quality of life for everyone here
in the North West of England."
One of the projects to benefit from the funding is the GBP 100m SBAP
project at Davyhulme wastewater treatment works in Manchester. The
scheme will provide enhanced sludge digestion, resulting in a cleaner
soil conditioner that can be recycled to farmland, plus large volumes of
biogas that will be used to generate green energy via combined heat and
power engines at the site. The electricity generated will be used to
power the entire plant, one of the biggest in the UK, and any excess
will be transferred into the National Grid. Wastewater treatment plants
at 12 locations including in Blackburn, Burnley and Sandon Dock in
Liverpool will also be upgraded to generate heat and electricity through
combined heat and power engines. In Penrith and Irthington treatment
capacity will be increased to meet local population growth and ensure
compliance with new environmental standards. The funding will also
support flood alleviation schemes, by increasing the capacity of sewers
during heavy rainfall, helping remove flood risk for nearly 800
properties. In addition, the programme will improve water quality in
rivers and along the coastline by upgrading sewer overflow points and
building 101 new storm water detention tanks.
Over the last 5 years the European Investment Bank has provided nearly
GBP 3 billion to water companies across the United Kingdom.
EIB – 03-11-2011