UK utilities firm Welsh Water has landed a multimillion pound loan facility with European Investment Bank in order to rebuild and refurbish its current premises.

Dwr Cymru Welsh Water, which provides wastewater services to over three million people, and is known for its not-for-profit model, has landed a £230 million loan facility after having the highest credit rating in the UK’s utilities sector. The money will fund the development of 12 water treatment works.

Commenting on the loan, Chris Jones, Chief Executive of D?r Cymru Welsh Water, said: “As a company without any shareholders, our sole focus is on providing the best possible service to our customers at the most affordable price.

“To deliver this, we must manage challenges such as accessing funding for our investment programmes at a competitive rate as well as the tight management of costs. We are therefore delighted to have secured this loan facility as it helps us deliver higher investment and lower bills for our customers.”

As well as spending £120 million in its investment programme to refurbish or upgrade its water treatment works, it will also be launching new schemes, such as RainScape.

The RainScape investment, which includes £15 million of the pot, will be used to retrofit sustainable urban drainage systems in Llaneli and Gowerton. This is in order to slow the rainwater rate, so it takes longer to meet the sewage system, and therefore reduces the risk of flooding and pollution.

Welsh Water has gained over £500 million worth of loans from the European Investment Bank since 2001, which in turn, has helped fund over £1 billion of capital expenditure.

Jonathan Taylor, Vice President of the European Investment Bank, also commented: “Continued investment in UK water infrastructure is essential to allow customers to access clean drinking water and sanitation that is amongst the best in the world. The new European Investment Bank engagement with Welsh Water announced [on the 8th January] is the largest it has agreed with the company in more than two decades of doing successful business together.

“The impressive project seen in Llanelli demonstrates a clear commitment to protecting rivers across the Welsh Water area from pollution. The European Investment Bank is committed to supporting long-term capital investment in water, energy, education, healthcare and other crucial sectors, across the UK.”

The European Investment Bank has been the biggest provider of UK water and sewerage infrastructure since before privatisation and has lent over £3.2 billion for water company investment in the last five years.

Carwyn Jones, First Minister of Wales, concluded: “We’re pleased that Welsh Water are working with local communities and delivering their innovative RainScape project. The significant improvements being made to urban drainage in Llanelli and Gowerton will make a real difference in reducing the risk of environmental damage and flooding during periods of heavy rainfall which I’m sure the local communities involved will welcome.”