DUBLIN: The Government gave Irish Water nearly €100 million in working capital last year to help it bridge the shortfall left by the non-payment of bills, Department of Finance papers revealed last night.
They also showed Irish Water paid the State €6.2 million in interest and guarantee fees on loans that helped the utility fund the installation of water meters around the country.
Minister for Finance Michael Noonan last year converted €54 million worth of debt owed by Irish Water to the State into equity in the company, according to the Department of Finance’s official accounts. They show that Irish Water had paid the State €669,000 in interest on the convertible loan beforehand and €5.5 million in guarantee fees, relating to a €300 million facility extended to the utility by the Ireland Strategic Investment Fund (ISIF).
The terms of the loan issued by the ISIF, which succeeded the National Pension Reserve Fund, required the minister to issue a guarantee for the debt.
The State then charges Irish Water a fee of 2 per cent a year on the amount of the loan that is drawn down.
