In a strategic move which brings back into NI Water ownership all clean water production in Northern Ireland, the company has announced the acquisition of Kelda Water Services’ holdings in four treatment plants that provide almost half of the treated water in the province.

The move followed the decision by the Kelda Group to put the non-regulated businesses of Kelda Water Services (KWS) up for sale. This included the Project Alpha Public Private Partnership (PPP) contract operated by KWS.

Len O’ Hagan, Chairman of NI Water said:-

“We are pleased to announce the completion of the purchase of the Project Alpha companies.  This brings back into NI Water ownership all clean water production in Northern Ireland.  This represents a strong fit with NI Water’s strategy to provide clean safe drinking water to our customers and to do so in a way that secures efficiencies for our customers and for the public purse.”

NI Water has paid £28 million to acquire all of the equity in the project from Kelda Water Services’ and will also assume responsibility for associated debt finance. NI Water said the acquisition will allow it to generate value from the project that will feed through to customers by way of reduced water tariffs, reduce resource DEL budgetary requirements and enable it to consider further efficiencies as to how the project will operate going forward.

NI Water CEO Sara Venning, said:

“A strong dedicated local team of approximately 30 staff operates project Alpha and we look forward to working with them even more closely as part of the NI Water group.

“The completion of the sale with the support of both the Department for Infrastructure, and the Department of Finance will allow us to continue to improve the service we provide and the cost at which it is provided to all our customers. I am grateful to both Departments for their support for NI Water in completing this transaction, along with the support provided by the Strategic Investment Board.”

Welcoming the announcement Mr Peter May Permanent Secretary at the Department for Infrastructure said:-

“When Kelda took on this contract in 2006, there was a need for substantial investment to upgrade the treatment of water to meet EU standards which was over and above what Government was able to commit to at that time.

“When the opportunity arose to bring the contract back into Government, the Department, in consultation with NI Water and DoF, carefully considered the value for money against the benefits to be gained. The outgoing Minister indicated that where affordability and value for money were proven, purchase of the contract could proceed.  The completion by NI Water of this transaction will allow them to secure further value to the public purse and will also create an opportunity to free up significant additional operating resource. We welcome the initiative taken by the Board at NI Water in pursuing the opportunities created by the acquisition”.