Scottish Water announces £3.5bn investment

River Clyde, Glasgow Image copyright PA
Image caption A project to improve water quality in the River Clyde in Glasgow was among the schemes announced

Scottish Water has announced a £3.5bn investment programme to improve water mains and drinking water supplies.

The publicly-owned company's six year investment programme is expected to support 5,000 jobs.

The programme is supported by £720m in borrowing from the Scottish government.

Scotland's Deputy First Minister, Nicola Sturgeon, said she expected the company to deliver the investment without raising customer bills above the level of inflation.

The Scottish government said Scottish Water had planned projects including:

  • more than £280m in improvements to water mains and water treatments works
  • over £100m for a Glasgow waste water tunnel to improve water quality in the River Clyde and reduce flooding
  • £45m to address 400 external sewer flooding problems
  • over £60m to reduce the impact of discharges to the River Clyde from Daldowie and Dalmarnock Wastewater Treatment Works
  • drinking water improvements including at Glenlatterach, Aberdeenshire, Fair Isle and South Uist.

'Financial pressure'

A Scottish government policy statement said water charges must remain stable.

It also announced an extension of assistance to charities to help them pay for water services.

Ms Sturgeon said: "Water and sewerage services are vital to our everyday lives.

"It is important that we continue to invest to ensure that these keep on meeting the needs of customers, the environment and economic development.

"I recognise that households and businesses are under financial pressure.

"That is why I expect Scottish Water to continue to deliver this £3.5bn investment programme without the need for inflation-busting charge increases."

Scottish Water's chief executive, Douglas Millican, said: "I am delighted that we are announcing the start of this major investment programme for 2015-21 which will enable Scottish Water to continue to provide first-class customer service, while supporting the Scottish economy and creating jobs in the construction industry."

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