AQW 29012/22-27

Mr Andrew McMurray
Alliance Party
South Down

Tabled Date: 19/06/2025
Answered On Date: 03/07/2025
Priority Written: No

Question:
To ask the Minister for Infrastructure to detail why her Department's loans to NI Water were not structured to include principal debt repayment.

Answer:

The department’s loan agreements with NI Water were developed under The Water and Sewerage Services (NI) Order 2006, which enables my department to provide loans for the purpose of financing NI Water’s capital investment programme. The loan instrument is structured to provide a return to the department from the interest accruing on borrowings issued.

While the return does not include an ongoing repayment of the principal debt, the 2006 Order provides the department with powers to address the repayment of the loan, either by write off the principal and interest of any loans, or to enter into an arrangement for the conversion into share capital of the principal and interest of loans so made. My officials are currently working with NI Water to progress the options for addressing the first loan agreement, the redemption of which is due March 2027. These options include the refinancing of the existing debt for a further period, or for the conversion of debt to share equity.