Northern Ireland Water, the state-owned company which provides water and sewerage services, has been publicly accused by a leading property development firm of “stalling new-build” projects in the North because of, it has been claimed, “excessive”charges.
Jamesy Hagan, managing director of Hagan Homes, which on Wednesday announced plans for a new £9.5 million (€11 million) development project in Ballyclare, said NI Water was charging “excessive and, in our opinion, unjustified amounts for sewer bonds”.
All builders must apply to NI Water for “approval and adoption of sewers and facilities” for any new housing development and as part of the process must sign a “161 agreement” with NI Water, which then collects a guarantee or cash bond from the developers.
Mr Hagan said: “They are the most expensive bonds of any UK region and this cost is being ultimately passed on to the homebuyer.
“Due to the large amounts involved it is also stalling new-build starts. The Construction Employers Federation has in recent years requested justification of how Northern Ireland Water calculates their bonds and why they impose them on builders in Northern Ireland but have yet to clarify.”
Planning applications
He was also highly critical of the “length of time” that some statutory agencies are taking to respond to planning applications as Hagan Homes announced details of its plans to build 78 new homes and create 50 construction jobs at its latest site in Ballyclare. The family-owned business has built almost 3,300 homes across Northern Ireland since it was established more than 29 years ago.
NI Water has hit back at Mr Hagan’s accusations and said bond securities are put in place primarily to protect the customer, particularly those buying new-build homes.
“The bond ensures developers have enough financial cover to fulfil their obligations to complete sewer connections to the standard required by NI Water for adoption. A bond security is mandatory under the terms of the Water and Sewerage Services Act (Northern Ireland) 2016. They are completely refundable upon completion of the work,” NI Water said in a statement.
The company said that the bonds are also based on a percentage of the estimated cost of the works.
“Both NI Water and Department for Infrastructure have undertaken a significant review of the bond requirements and has found them to be comparable with other UK water companies. The department engaged with relevant stakeholders, including CEF, during that review process,” NI Water added.
It said it was also important to remember that the bond security, which can be provided by a third-party financial provider, can be used by NI Water to ensure that the sewers in any new development are constructed to “meet the standards required and mitigate the risk to the homeowner”.
