1. Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009 Water Services Training Group 13 th Annual Conference 10 th September 2009

2. Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009 Future direction for the Water Services Investment Programme Maria Graham Principal Officer Water Services, DoEHLG

3. Water Services Investment Programme (WSIP) Funding of major water services infrastructure (schemes > €1 million); High level Goal: Ensure that the timing & scale of water services infrastructure investment facilitates:- Economic and other development; Compliance with statutory requirements; Achieves environmental sustainability objectives. Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009

4. Investment €3.35m on WSIP 2000-2008; €500m overall budget for 2009; €400m WSIP; 2007-2009 WSIP: 955 projects valued at €5.8 billion; Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009

5. WSIP outcomes – 2000 to 2008 442 Projects completed 120-150 in progress at any time in recent years 118,000 sites under Serviced Land Initiative Waste Water Compliance with UWWTD from 25% in 2000 to 90% Increase in treatment to capacity equivalent to population of 3.6 million Water Overall compliance with chemical standards good (99.1%) Capacity increases Treatment capacity 855,000 population equivalent (pe) Pumping capacity 1.3 m pe Storage capacity1.5m pe Emergence of the Remedial Action List (RAL) Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009

6. Challenges Continuing infrastructure deficits Environmental Compliance Capacity Constraints and planning for future growth Leakage Changed economic situation…. Public finance constraints Affordability of projects from LA perspective Need to re-examine priorities Optimising value for money Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009

7. Key VFM considerations Overall strategic direction - selecting the right objectives & projects Quality issues: addressing public health and environmental compliance (EPA reports, ECJ etc) Capacity – rigorous examination of population projections/engagement with industry/role of water conservation Scale and timing Focus on delivery Programme management Project management

8. Value for Money Review Study being undertaken under Government Programme Steering Group with Independent Chair & CCMA participation Overall objective - Review of efficiency & effectiveness of programme investment & delivery and inform the implementation of the next multi-annual rolling programme of WSIP. Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009

9. WSIP 2010-2012 Assessment of Needs currently underway- due back 23 October 2009 Programme to be realistic in level of ambition – affordability and deliverability Investment focused on key priorities Environmental compliance issues Fully support economic and employment growth Offer best value for money Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009

10. Number of key changes… Review of existing schemes which are not sufficiently advanced; Phasing of components – prioritisation in construction phase based on contracts rather than schemes; Integration of water conservation into overall programme; Need to strengthen strategic overview and regional perspective – parallel work on River Basin Management Plans.

11. Category 1Water Conservation Proposals Category 2Works to respond to ECJ judgments Category 3Environmental/Public health objectives Category 4Works to support sustainable development in gateways and hubs, developing areas & support employment creation Prioritisation is key…. Meeting the Challenges of the Changed Economic Environment Annual Conference September 2009

12. Identifying proposals.... Issues to Consider Scope and phasing Affordability Deliverability Regional dimension Prioritise the Priorities! delineate proposals into those for immediate advancement, and those to pursue thereafter.

13. Returns by 23 October… Submit programme with two components: Preface - strategic context Projects priorities in four categories Construction stage to focus on priority contracts to advance under the four categories of priorities Planning stage to focus on schemes with time horizon beyond 2012 Consultation

14. WSIP Delivery Programme/Project Management Need to focus on achieving outcomes Important role of Project Steering Group Need to expand use of WebPCS. Annual Review of WSIP 2010-2012 Small Schemes Programme Approvals Approval regime seeks to balance delegation with Departmental accountability. Circular L5/09 – some changes to 2008 procedures in light of changed financial circumstances and the need to schedule commitments.

15. Conclusion WSIP has important role to play in economic revival Need to respond to environmental & economic challenges within available resources - prioritise Continuing need to pursue VFM at programme and project level Investment programme – must be targeted, clearly focused, realistic in ambition and strong impetus on delivery Investment must be sustained by operational performance.