UU taps European bank for £400m
THE European Investment Bank (EIB) has agreed to provide Warrington-based United Utilities (UU) with a £400m loan to invest in projects to improve the water supply.
The deal, signed by UU’s chief financial officer Russ Houlden and the EIB’s UK vice-president Simon Brooks, will provide long-term funding to schemes that will enable wastewater to be treated more efficiently as well as improving water quality.
It will also include support for projects that take account of the potential impact on water and wastewater of extreme weather events and climate variability. These projects form the first phase of United Utilities’ five-year capital expenditure programme to 2015.
Houlden said: “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.
“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.”
Brooks said: “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.”
One of the projects to benefit is a £100m project at United Utilities’ major Davyhulme wastewater treatment works in Manchester, where it is providing 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.
Wastewater treatment plants at 12 locations including in Blackburn, Burnley and Sandon Dock in Liverpool will also be upgraded to generate green energy, while treatment plants in Penrith and Irthington will be upgraded to improve capacity.
