Two significant milestones have been reached in New Zealand's water reform programme, with Waikato Waters Limited (WWL) becoming the first water services council-controlled organisation (CCO) to join the New Zealand Local Government Funding Agency (LGFA) borrowing programme, and Selwyn Water Limited (SWL) quickly following suit.

Simpson Grierson advised the council shareholders on both transactions, covering debt transfer arrangements and council involvement in each organisation's accession to LGFA.

Waikato Waters Limited: a first for the sector

WWL is the first water services CCO to access LGFA's borrowing programme, a milestone that signals real momentum in the Government's Local Water Done Well policy. Through LGFA membership, WWL can now access long-term, cost-effective financing to support water services and infrastructure investment across the Waikato region.

WWL is jointly owned by six district councils: Hauraki, Matamata-Piako, Ōtorohanga, South Waikato, Waipā, and Waitomo. Simpson Grierson Partner Josh Cairns led the team advising those council shareholders on the LGFA accession and debt transfer arrangements.

WWL is the first of up to 18 water CCOs anticipated to join LGFA as the Local Water Done Well framework takes shape across the country.

Selwyn Water Limited: the sector's first CCO reaches another landmark

Selwyn Water Limited holds the distinction of being the first water services CCO established in New Zealand. Wholly owned by Selwyn District Council, SWL has also now completed its accession to the LGFA borrowing programme. Simpson Grierson advised Selwyn District Council on the LGFA accession and debt transfer arrangements.

Simpson Grierson Banking & Finance Partner, Josh Cairns says: "These are nationally significant transactions because they’re the first of their kind under the Local Water Done Well framework and precedent-setting for how councils can respond to water reform while retaining local ownership and accountability. 

“It's genuinely exciting to see the financing infrastructure now in place to support these new entities," says Josh.

What this means for the sector

After a period of significant reform and uncertainty in New Zealand's water sector, these transactions demonstrate that the Local Water Done Well framework is operational and financing is flowing. LGFA access is a critical enabler for new water entities because it provides the financial foundation to fund long-term infrastructure investment on competitive terms.

For the councils and communities involved, these milestones represent tangible progress toward financially sustainable, fit-for-purpose water service delivery.

Our team continues to work with councils and new water entities across New Zealand navigating water reform, from structuring new water entities to financing arrangements and governance. 

Read our background on the Local Water Done Well framework and Water Service Delivery Plans here.

To find out more about our work in this space, get in touch with one of our team.