The 18-year loan from the lending institution will be used to finance improvements to the region’s water and wastewater networks as part of UU’s £3.5 billion capital investment programme for the 2015-20 regulatory period.
The first £250 million of the new loan was signed earlier this week and the second half is expected to be signed as the investment programme progresses.
Local schemes being supported by the 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.
VIDEO: UU investment in NW England gets £500m European Investment Bank backing
Source: United Utilities
UU chief financial officer Russ Houlden said: “In 2015-20 we are delivering an investment programme of around £3.5 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.”
EIB is the world’s largest international public bank and is 16 per cent owned by the UK government.
It has provided more than £12.6 billion for investment in water and waste water infrastructure across the UK since 1976, including expanding reservoirs, reducing leaks and protecting against flooding.