Why is water management work becoming more and more expensive?

Water authorities have the legal responsibility to manage and control surface water in our country; in other words, to maintain and monitor it:

• This way, we can continue to live safely with water in the Netherlands.
• Our water is becoming cleaner and healthier.
• Water authorities treat wastewater from households and businesses.
• Water authorities contribute to sufficient water in every season.

After all, none of us want too much water, and certainly not too little.
It all seems pretty straightforward. However, these tasks are changing rapidly:

• Climate change is causing sea levels to rise. Water authorities have to do more to ensure that we can continue to live safely with water. For example, kilometres of dyke along the Wadden Sea coast have already been reinforced. That work will continue for some time. Dykes and quays inland must also meet stricter standards. Pumping stations need ever greater pumping capacity to be able to pump away more water when necessary.
• The quality of surface water must improve so that we can live in a healthy environment. Far-reaching agreements have been reached in Europe to this end. Water authorities face a major task. The measures are complex. Water quality depends on many factors, such as the amount of oxygen or waste. That is why improvements in quality are sometimes slow. In addition to patience, money is also needed to make water cleaner and healthier:
  • in treating wastewater;
  • in reducing the use of crop protection products along waterways;
  • in a more natural design of watercourses for greater aquatic life and biodiversity;
  • The requirements for treated wastewater from households and businesses are becoming stricter. Agreements have also been reached in Europe on this subject. Microplastics, drug residues, and other emerging substances must be removed better from wastewater by water authorities.
  • We are facing increasingly extreme weather conditions. Sometimes there is too much rain in a short period of time. Sometimes it stays dry for too long. To deal with these situations effectively, we are setting up areas where we store excess water temporarily. We then gradually discharge it into the sea. We are also trying to retain water better and for longer in order to prevent drought as much as possible.
  • Our country has concluded nationally and internationally binding agreements to achieve climate targets. This means that water authorities have to adapt their work too: emit far fewer greenhouse gases, generate their own energy, and increasingly reuse raw materials. 

Therefore, water authorities have to make greater efforts to ensure their activities comply with national and international requirements. That costs more money too.

The areas where the 21 water authorities in the Netherlands manage the water have their own regional characteristics: 

• For example, an area may be very urban in design. Or it may have plenty of space for water, nature, and open landscapes.
  • The Noorderzijlvest region encompasses urban areas and open landscapes with water, nature, and agriculture. And everything in between.
• Some water authorities manage sea dykes, others do not.
  • Noorderzijlvest manages 70 kilometres of Wadden Sea dyke from Lauwersoog to Delfzijl.
• The water authority also manages the dykes and quays inland.
  • For Noorderzijlvest, this involves almost 450 kilometres. These must comply with legal standards. This requirements high levels of investment from the water authority.
• In some parts of the country, water can flow freely from higher areas to lower-lying land. In many other places, technology helps to move water, either when it enters the area or when it is drained away.
  • In the Noorderzijlvest area, both of these things are happening. A network of weirs, inlets, and pumping stations ensures that the agreed water levels are maintained. Noorderzijlvest has to drain the area 26% more than the average in the Netherlands so that residents can continue to live there safely and there is sufficient water in every season.
• Urban areas in particular are growing. This means more houses and buildings and more wastewater that Noorderzijlvest has to treat.
  • Noorderzijlvest manages part of the city of Groningen and the planned expansions on the west side of the city.
• Water authorities manage dozens of large and small facilities in order to manage and control surface water. These range from sewage treatment plants and pressure pipes to pumping stations, weirs, locks, and inlets. These facilities require maintenance or sometimes need to be replaced completely. Some water authorities manage relatively new facilities or have already completed major maintenance cycles, while others are currently planning major interventions.
  • Noorderzijlvest is investing heavily in modernising treatment systems for example and, where necessary, increasing the capacity of pumping stations. Our facilities often have a long service life. At some point, it becomes time for major maintenance, renovation, or total replacement.

Noorderzijlvest has already started a lot of work and carried out projects in recent years to create a climate-proof living environment. These include the following projects:

• Noorderzijlvest manages the 70-kilometre-long sea dyke between Lauwersoog and Delfzijl. Major reinforcements are needed on two sections: the now completed work on the Eemshaven-Delfzijl section and the work already started on the Lauwersmeerdijk-Vierhuizergat section.
• Investments in improving the quality of surface water are substantial everywhere. Noorderzijlvest has opted for careful preparation with area processes. This is important in order to be able to take measures that you and the residents can support. These area processes take time.
• The treatment plants must be future-proof. In Westerkwartier, Noorderzijlvest is constructing a new treatment plant that will replace three old ones. The large treatment plant in Garmerwolde is in need of a major overhaul on several fronts. The transport of wastewater through the pipe system becomes more vulnerable over time and requires maintenance.
• Noorderzijlvest is constructing balancing lakes to temporarily collect excess water. Noorderzijlvest is also working on retaining water for longer periods for later use. Retaining water for longer periods requires changes, such as different land use, different water levels, greater focus on improving soil structure, and a different, more natural layout of the area.

How quickly all this needs to happen is a political and administrative decision. When making that decision, it must be clear:

• what we are all willing to do to ensure a climate-proof living environment;
• which risks we are willing to accept;
• how much it may cost to achieve the goals. 

The board of Noorderzijlvest recognises that the goals are ambitious, extending well beyond the term of this board, which runs until 2027. The board also realises that not everything can be achieved at once. That is why choices have to be made. The order, planning, implementation deadlines, and the capabilities and scope of the organisation require close attention.

Noorderzijlvest's budget amounts to approximately €90 million. This covers the water authority's annually recurring costs of materials, maintenance, personnel, chemicals, and much more. Part of the investments is also paid from this budget.

Noorderzijlvest invests more than just its own money in order to continue to fulfill its statutory tasks. Investments are increasing because Noorderzijlvest has to carry out more work. The additional work required costs approximately €64 million per year. The Water Management Programme for the period 2022-2027 sets out the work that Noorderzijlvest will carry out. This work requires more money than comes in through water rates. That is why Noorderzijlvest borrows money. Borrowing costs interest and repayments each year. These costs are reflected in the budget when larger and more expensive projects have been completed and enter the maintenance phase. These costs are an essential part of the water authority's financial management. 

Noorderzijlvest cannot pay for everything by using only its own funds. Doing so would necessitate even faster increases in water rates. Higher and essential expenditure must be balanced with income. Borrowing money incurs costs. However, we can spread those costs over a longer period. This allows us to do what is necessary in the area.

No, there is no such limit. Of course, it is important that there is enough money to cover the costs. This is monitored. It is not healthy if borrowed money represents too large a proportion of the annually available funds. The current budget is balanced. It has to stay that way.

Yes, you have to assume that. The developments in our climate are urgent. We cannot avoid taking action and persevering. When determining the actions to be taken, Noorderzijlvest looks far ahead to future developments in order to determine what is needed now.
There are many international, national, and regional agreements that Noorderzijlvest must and wants to comply with. The challenges are great. More money is needed to:

• keep the organisation in order and adapt it to changing requirements;
• eliminate backlogs;
• take necessary measures now and not pass them on to future generations;
• significant improvements in water quality;
• prevent disasters and flooding caused by climate change in a timely manner;
• treat wastewater in line with new and future European regulations.

In the years up to and including 2022, rates could still rise at a reasonably moderate pace. In 2023, the Noorderzijlvest board had to abandon that wish due to the greatly changed situation in the world. Costs rose rapidly everywhere in a short period of time. In the coming period, Noorderzijlvest will face major and expensive water challenges, certainly for the next 10 to 15 years. That is why we will all have to accept a significant increase in water rates.