The European Investment Bank has agreed to provide US$717 million to support investment across the north-west of England by United Utilities. The 18 year loan from Europe’s long-term lending institution will be used to finance improvements to the region’s water and wastewater networks as part of United Utilities’ GBP 3.5 billion capital investment program for the 2015 to 2020 regulatory period.

Local schemes being supported by the new European Investment Bank loan include the proposed pipeline to link West Cumbria to Thirlmere and the rest of the regional water network; work in Blackpool to increase the capacity of the sewer network and reduce the impact of storm overflows on bathing waters; and a major scheme to upgrade and replace half of the treatment process at the company’s largest wastewater treatment works at Davyhulme.

The first US$359 million of the new loan was signed last week and the second half is expected to be signed as the United Utilities capital investment program progresses.

Russ Houlden, Chief Financial Officer at United Utilities, said:

 “In 2015-20 we are delivering an investment program of around US$5 billion for the benefit of customers and the environment and to improve our ability to cope with climate change. We aim to do this at the lowest sustainable cost possible in order to keep bills down and this low cost funding from the EIB helps us to give our customers excellent value for the bills they pay.”

Jonathan Taylor, European Investment Bank Vice President, said:

“The European Investment Bank has provided US$3,2 billion over the last 12 years to support investment by United Utilities that benefits customers, the environment and the north-west regional economy. We are pleased to continue this strong engagement with United Utilities that will ensure that water infrastructure can cope with the region’s growing population and business sector, help customers to save money and ensure services are maintained during dry spells or heavy rain. As the largest lender to the UK water sector since before privatization the European Investment Bank recognizes United Utilities’ commitment to offer graduate and apprenticeship schemes and work with local suppliers to maximize the impact of their ongoing investment.”