Waterdog Water Water Woos Investors with “Guaranteed Income” as you are looking for £ 50 million

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The United Kingdom Water Watchdog has promised the guarantees of investors’ income, without competition and minimum risk, as it seeks to overcome more than 50 million pounds for projects to address water shortage.

Investors will have the “right to collect” customer revenue, “opportunities for the reverse”, “covered liabilities” and “positive investment” support from the Government, according to an ORWAT informative document seen by the Financial Times.

The document, presented to investors at a conference at the London offices of the Jefferies Investment Bank last Friday, adds that there is “no exposure to competitive or market risks”, referring to the fact that there is unlikely change in water demand. infrastructure.

It takes an investment of up to 50 million pounds to support about 30 new projects to improve the Britain’s infrastructure for the next 15 years. Already approved by FearThe projects include deposits, treatment works and water transfer schemes. Most will be delivered by private financing schemes and will be largely paid through an additional surcharge to customer bills.

This is controversial because water companies have become lightning for public anger after an outbreak Financial problemsWastewater leaks and supply interruptions, as well as a strong increase in household invoices.

OFWAT, which oversees the 16 private water and sewer companies in England and Wales, has a legal duty to protect the interests of consumers, “wherever it is adapted by promoting effective competition.” It is also commissioned to ensure that water companies can finance their activities.

The new infrastructure aims to address a Projected hydrian decline About 5 million liters a day by 2050, according to Offat. The Environment Agency has warned that the driest spring of 69 years has left the country at risk of drought this summer.

According to Offat, investors, including Agilia, Equitix and Aviva infrastructure members, attended the Friday conference.

The projects will sit outside the usual five -year bill regulating process, will have their own management teams and, in some cases, will be paid throughout the construction period. Investors will be paid by a surcharge from the client’s invoices for a license period of about 25 years or for the lifetime of the project.

OFWAT argues that there are measures to protect customers and that the creation of separate vehicles from private funding will reduce their costs. But additional charges are likely to be worried about consumers, who have already faced The invoice increases With an average of 26 percent per home from April 1, the largest annual increase since privatization 36 years ago.

Mathew Lawrence, responsible for common wealth, a think-Tank, said that new schemes were a “prisons free card for water companies”.

“They have not built enough water infrastructure and they cannot be allowed now, so they are told to configure many more debt balances, which will also be paid by customers.”

Some of the schemes, including the new Abingdon and Fens deposits, are shaped in the new Thames Thames Wastewater Tunnel, for which the London people have paid an additional surcharge (currently £ 26 annually) to their bills since the construction began. They will continue to pay the tunnel during their 125 -year lifetime.

OFWAT argues that the new PFI schemes are needed to foster competition and provide experience because “many of these projects have a size and complexity that water companies have not delivered since privatization, and third-party suppliers and investors may be better located.”

Martin Young, an independent water and energy consultant who attended the Friday conference, said that “the size and scale of the projects was such that he would create a class of completely new assets and that he would be fine with investors of pension infrastructure and suppliers that seek to invest in long -term assets with predictable cash flows”.

There have been no new deposits built for 36 years since privatization. The new projects include 10 tanks, eight water recycling schemes, two desalination plants and nine transfer schemes that will provide water from the wettest parts of the north to the drier south.

OFWAT said: “Relating with investors and the supply chain is essential for competitive hiring, the assessment of money for clients. This type of commitment activity of the interested parties is important to optimize the delivery of projects and we will work with companies to expand the market commitment in the coming months.”

Jefferies refused to comment.