Crowd barriers in readiness on Kildare Street ahead of the water charge protest at Leinster House. Photo: Tom Burke

Hundreds of anti-water charge campaigners protest outside the Irish Water HQ. Similar protests took place in Galway, Cork and Limerick. Photo: Tony Gavin

THE Government has quietly changed the law to allow Irish Water borrow up to €2bn - four times the previous limit.

The Irish Independent has learned that the company expects to exceed a €500m borrowing cap previously in place and has been given permission to quadruple the amount of money it can source from banks and private lenders.

The move comes as tens of thousands of people are expected to descend upon Dublin today to protest against the imposition of charges.

Organisers expect at least 30,000 to show up, despite it being a working day.

The Government is hoping the numbers are far less, indicating a tacit acceptance of the charging regime.

The upper borrowing limit was included in legislation published last year, but the changes were only enacted in recent weeks.

The official commencement order was published in State gazette 'Iris Oifigiuil' last Friday.

The funding will be used to pay the €540m cost of installing meters; fund a €1.77bn investment plan to the end of 2016; and meet some of the €171m establishment costs involved in setting up the company.

Irish Water was originally given an upper borrowing limit of €500m, which was guaranteed by the State.

This was put in place to help pay the start-up costs and begin installing 1.05 million meters in homes, which was funded by €300m sourced from the National Pension Reserve Fund (NPRF) on commercial terms.

The funding guarantee was put in place because at the time, Irish Water had no source of income beyond Government subvention.

However, from next January it will have a number of income streams - Government subvention amounting to an average of €537m a year and annual domestic and commercial water charges of some €500m.

But plans to upgrade the network will require at least €600m a year until 2020 to bring it in line with international standards and tackle leaks.

Irish Water said it has existing borrowings of €300m from the NPRF, and another €50m from a "commercial banking institution". It said that its investment programme would be funded through a combination of Government money and debt, and that it expected to finalise further loans shortly.

"The debt funding environment remains positive and there is significant interest in providing external commercial debt funding to Irish Water.

"Irish Water has had extensive discussions with a variety of domestic and international banks, who have expressed an interest in providing debt facilities," it said.

"Irish Water has already secured its first commercial bank facility and is expecting to finalise further commercial bank facilities in the coming weeks and months."

The borrowings will remain off the Government's balance sheet - assuming the commercial semi-State passes the so-called Market Corporation Test.

Changes to the charging structure announced last month mean Irish Water will be more reliant on State funding than under the previous regime when higher customer fees were expected.

The changes include a capped charge for single person households of €160 a year, and a maximum charge of €260 for a house with two or more adults.

In addition, each homeowner in the State will receive an annual €100 'Water Conservation Grant' to help reduce bills.

This compares with a previous capped charge of €175.68, and €278.16 with no grant.

Workers asked to conceal occupation

Irish Water staff are being encouraged to conceal their occupation today, as tens of thousands of protesters are expected to descend upon the capital from early morning.

An internal memo was sent to staff last night encouraging them "not to wear branded clothing" outside of the office. They are also being asked to remove their ID cards while they are in public today, as the 'Right2Water National Assembly' is set to take place in Dublin city centre this afternoon.

The health and safety guidelines issued stipulate that staff "must not engage with the demonstrators" in the event of a protest outside the Irish Water headquarters on Talbot Street in the city centre. Staff members are also being asked to remain within the building throughout the day.

All external entrances to the building will be locked, and cannot be accessed by staff or visitors. Workers are being asked to follow the instructions of security personnel. Despite issuing this "personal safety and security email", bosses are confident that it will be "business as usual".

Emma Jane Hade

Irish Independent