IRISH WATER MUST pay over €14 million in interest and fees on a loan it took out from the State’s National Pension Reserve Fund.
The State has underwritten a loan of €300 million for Irish Water, which was originally €250 million but was increased by €50 million.
The interest figure was revealed in a parliamentary question in the Dáil.
Repayment
Fianna Fáil’s Barry Cowen asked the Minister for Finance Michael Noonan what interest payments Irish Water is paying per annum on the National Pensions Reserve Fund loan to finance water meters this year and each year from 2015 to 2019. He also asked when the loan will be fully repaid and the total costs of the loan.
Noonan explained that in July 2013, in order to meet expected costs arising, Irish Water entered into a €250 million bridging loan facility with the NPRF, which is repayable in September 2015.
This facility was part drawn at the end of 2013 and was fully drawn down during 2014. Earlier this month, the NPRF agreed to increase the amount available under this facility to €300m, which has also been drawn down.As the loan facility was entered into prior to the introduction of full water legislation and the water regulatory regime, the facility was guaranteed by the Minister for Finance in accordance with Section 13 of the Water Services Act 2013.
Under the terms of the facility, interest and commitment fees on the loan are rolled-up and added to the amount repayable by Irish Water at the end of the loan’s term, explained the minister, who said these rolled up amounts are expected by Irish Water to be approximately €14 million by September 2015.
“A fee is also payable by Irish Water to the Minister for Finance under the terms of the guarantee provided by the Minister. To date Irish Water has paid €4.8 million with a further €5.6 million expected to be paid over the remainder of the loan’s term,” said Noonan.
To embed this post, copy the code below on your site
have your say