| Low likelihood of privatization but RMI side to grow Privatising Ireland’s major water and wastewater treatment plants is an unlikely proposition to 2011 although the move is likely to be considered by a cash strapped Irish republic. Meanwhile, water services Repair, Maintenance and Improvement (RMI) output is likely to reach higher levels than previously seen. RMI output was estimated at €439 million for 2008 by economic consultants DKM, representing an average 11% increase year on year since 2004. Our conservative estimate is that growth will exceed the 3% mark for 2011 (to the seven-year average of 9%) thanks to the deployment of costly pipe replacement (or Stage 3) water conservation projects. Furthermore, with Environmental Protection Agency (EPA) statistics showing that rural water schemes continue to underperform with regards to Water Framework Directive (WFD) standards, the enforcement agency is to start issuing more penalties for non-compliance thanks to the powers granted under the Water Services Act of 2007, a move likely to further foment RMI growth. Due to “sub-standard” rural water supplies around the country, the Department of the Environment earmarked €100 million for the deployment of regional upgrades in 2009 in response to the formal EU proceedings charged against Ireland. |
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