'Outdated' sewage systems stall building in 23 towns
An outdated and at capacity sewage network is stalling construction of new homes, businesses and public buildings in 23 towns across Northern Ireland, according to NI Water.
Of 37,000 properties waiting to be connected to the sewage network, utility provider NI Water has confirmed that 19,000 applications for development cannot go ahead.
In a statement, NI Water said the system is at capacity "due to historical underinvestment" and that it is "currently working through" its budget allocation from the Department for Infrastructure (DfI).
NI Water added it "remains committed to collaborating with developers".
The poor condition of the sewage systems has been affecting the number of buildings being completed, according to some of those working in the sector.
Joe McGinnis is the managing director of Braidwater Group, which builds private and social homes.
They are currently working on two sites in Londonderry and one in Carryduff, where construction work has slowed down due to different "complex issues".
"Our business, like any business relies on a reasonable degree of certainty and we don't have that," Mr McGinnis told BBC News NI.
'Stopper on development'
Elsewhere, 400 homes in Mallusk are stalled due to a lack of funding in NI Water, according to drainage management specialist Kenny Elliott.
"That generally is the picture that is being painted to developers across the country where NI Water had planned to upgrade an asset, without the funding those capital upgrades are no longer happening and that's what is putting the stopper on a lot of the development here," Mr Elliott said.
Conor Mulligan is the managing director of Lagan Homes and said he was aware of 40 to 50 foreign investment projects being held back because of issues around sewage.
"Pipeline work is pretty devastating. We have to seriously ask ourselves if we can continue to invest in Northern Ireland," Mr Mulligan said.
'Vital measures'
In a statement, the DfI said the board of NI Water "confirmed that it will live within" the budget provided.
However, even if fully funded, the independent Utility Regulator’s final determination only allowed for connecting 4,500 properties in the period 2021-2027, the department added.
The Chartered Institute of Housing said "vital preventative measures" need to be taken by the DfI and the Department for Communities (DfC) to "prevent further escalation of the housing and homelessness crisis".
The chief executive of the Construction Employers' Federation, Mark Spence, said the number of houses built last year was 5,418 when the executive has a target of 10,000 a year.
"The Utility Regulator agreed with NI Water in 2021 that they they needed around £600m a year to deliver these essential upgrades, that's near a third of our entire capital budget just on sewage," Mr Spence said.
"We don't appreciate it because we can't see it, we just expect it - until it goes wrong or until your family can't afford that starter home or the social home that they need," he added.
NI Water is facing a funding shortfall of £185m in 2024/25.
Experts have been calling for a change in how NI Water is funded but the infrastructure minister has ruled out a model which, he said, would lead to water charges for households.
In a statement, NI Water said Northern Ireland’s wastewater system is at capacity "due to historical underinvestment".
"DfI have provided NI Water with a total indicative budget allocation of almost £0.5 billion for 2024/25, representing just under 40% of the total non-ring-fenced budget for the department," it added.
The company said that by collaborating with developers, it has "identified ways in which 18,000 properties may be able to connect to the wastewater system", however these properties would require developers to "incur additional expenditure".
"NI Water is currently working through its budget allocation from DfI and remains committed to collaborating with developers to identify if it is possible to find innovative ways to address the constraint," it added.
