Financing Multi-Sector Water Supply Assets
The water sector in England & Wales is facing significant challenges to its ability to maintain resilient supplies of water resources, particularly from climate change and population growth. Innovative solutions to financing and delivering water infrastructure may help meet these challenges. Collaboration between statutory water companies and other water users, such as power companies and farmers, to develop multi-sector solutions may have the potential to deliver significant benefits for customers, the environment and contribute to a more resilient water sector in the future.
Anglian Water is working with other statutory water companies, other water users and the Environment Agency (EA) to address these challenges in the East Anglia region as part of the Water Resources East Anglia (WREA) initiative. As part of its work, the WREA initiative is considering the desirability and practicality of developing multi-sector water supply assets (MSWSA s). These assets would provide both public water supplies (PWS) and supplies to other water users (non-PWS) to help address the challenges faced by the water sector. If it is decided to proceed with one or more MSWSA projects, then a key issue for the sector, and for the statutory water companies, will be how best to finance such projects.
Against this background, FTI Consulting LLP (FTI) has been commissioned by Anglian Water Services (AWS) to identify and describe the different options that may be available for financing Multi-Sector Water Supply Assets, to undertake an initial evaluation of which of these options might be most appropriate and to identify any barriers to implementation from existing regulatory arrangements applicable to the sector.