EIB provides £230m loan to Dwr Cymru Welsh Water for infrastructure development

European Investment Bank (EIB) has approved a £230m loan facility to water and wastewater service provider Dwr Cymru Welsh Water (DCWW).

The 15-year loan will help improve DCWW’s services by financing its extensive capital expenditure programme.

The loan will be partially used to fund DCWW’s £120m investment programme, which is likely to improve potable water quality after rebuilding, refurbishing or upgrading 12 water treatment works.

The programme also involves development of new schemes, including DCWW’s special surface water management approach named ‘RainScape’.

The £15m RainScape investment will be completed at Llanelli and Gowerton in Wales, which will improve sustainable urban drainage systems for controlling the rate at which rainwater enters the sewer network.

The approach is expected to prevent flooding or pollution caused by overloaded sewers after heavy rain.

DCWW chief executive Chris Jones said: "As a company without any shareholders, our sole focus is on providing the best possible service to our customers at the most affordable price.

"To deliver this, we must manage challenges such as accessing funding for our investment programmes at a competitive rate, as well as the tight management of costs.

"We are therefore delighted to have secured this loan facility as it helps us deliver higher investment and lower bills for our customers."

EIB vice-president Jonathan Taylor said: "Continued investment in UK water infrastructure is essential to allow customers to access clean drinking water and sanitation that is amongst the best in the world.

"The new EIB engagement with Welsh Water announced today is the largest it has agreed with the company in more than two decades of doing successful business together.

"The impressive project seen in Llanelli demonstrates a clear commitment to protecting rivers across the Welsh Water area from pollution."

After being acquired by Glas Cymru in 2001, Welsh Water has received more than £500m in loans from EIB.

The funding is said to have helped in funding more than £1bn of capital expenditure for improving water and wastewater services across its operating areas.

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Image: RainScape programme by Dwr Cymru Welsh Water. Photo: courtesy of European Investment Bank.