NI Water warns wastewater constraints are holding back housing and growth
NI Water has warned that wastewater capacity constraints have become one of the most significant barriers to housing development and economic growth across Northern Ireland.
The utility raised the issue during a presentation to Derry City and Strabane District Council’s Governance and Strategic Planning Committee, where it outlined ongoing investment in the council area and warned of the consequences of insufficient long-term funding.
NI Water said ageing infrastructure is operating at or beyond its intended capacity in many areas, with pressure on the sewerage network contributing to restrictions on some new housing and business connections.
NI Water says sustained investment is needed
Dr Stephen Blockwell, NI Water’s Head of Investment Management, said modern and resilient water and wastewater infrastructure was essential for economic growth, environmental protection and new housing.
He said wastewater capacity constraints were now among the most significant barriers facing development across Northern Ireland.
NI Water said its original PC21 investment programme envisaged more than £2 billion of investment in water and wastewater services.
However, funding pressures since 2024 have resulted in annual capital allocations being significantly lower than originally planned, limiting the delivery of wastewater treatment upgrades and improvements to the wider network.
Major projects progressing in Derry and Strabane
Several infrastructure projects are continuing in the Derry City and Strabane area.
The £9.5 million Strathfoyle Sewerage Siphons Replacement Project is being completed, with more than £6 million being invested during the current year.
NI Water is also progressing the £3.2 million Corrody to Creggan Transmission Main Replacement Project, which is intended to safeguard water supplies to around 35,000 properties.
Nearly £20 million is planned for wastewater pumping station projects at Lenamore and Skeoge and associated sewer infrastructure, with the investment expected to help facilitate future housing and economic development.
NI Water preparing £3 billion investment plan
NI Water is now developing its PC28 Business Plan covering 2028 to 2033.
The company expects to submit proposals worth approximately £3 billion, covering essential services, public health, economic growth and wastewater infrastructure.
Blockwell said addressing capacity constraints and improving environmental performance would require sustained investment over several years.
He said the issue required a shared response involving government, regulators, developers and other stakeholders, with securing sufficient funding now the key challenge.