Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


HBRC gives conditional agreement to Ruataniwha Scheme

HBRC gives conditional agreement to investing in Ruataniwha Water Storage Scheme

Hawke’s Bay Regional Council has today voted 6-3 in favour of investing up to $80 million in the Ruataniwha Water Storage Scheme.

The decision was made in front of a full public gallery at today’s council meeting, following a public consultation phase last month which attracted close to 200 submissions.

The investment is subject to a number of conditions including farmers signing up to take at least 40 million cubic metres of water from the scheme, securing investors, gaining a workable environmental consent for the scheme and a viable design & construction contract.

The motion was moved by Councillor Debbie Hewitt (Central Hawke’s Bay Councillor) who said the water storage scheme is a legacy project for Hawke’s Bay. She said irrigation is a proven enabler which deals with the issue of not enough water and is an intergenerational gift that keeps on giving for the entire region.

The councillors who voted in favour of the investment were:
· Fenton Wilson (Chairman)
· Christine Scott
· Alan Dick
· Debbie Hewitt
· Dave Pipe
· Peter Beaven
The councillors who voted against the investment were:
· Tom Belford
· Rick Barker
· Rex Graham

The notice of motion from today’s Council meeting was:
That Council:
1. Notes the proposal to invest up to $80million in the RWSS was submitted for public consultation through the Council's Special Consultative Procedure which revealed majority support for RWSS amongst public respondents.
2. Notes the Deloitte Peer Review of the current business case supports it in principle but that material elements of the case remain to be finalised, including the construction contract, capital structure and water user uptake, and therefore the final version of the business case upon which Financial Close is predicated could differ from the current case.
3. Notes Deloitte's view that investment by both HBRC and Crown Irrigation Investments Ltd (CIIL) in RWSS is critical to it proceeding, and that terms for CIIL investment have yet to be agreed.
4. Notes Deloitte confirms that there are no circumstances under the current business case where HBRC would be called upon to fund returns to other equity investors.
5. Notes Nimmo Bell's view that RWSS is likely to generate a greater benefit for the regional economy and higher financial returns to HBRC than other available alternative investments.
6. Notes the Draft Decision of the EPA Board of Inquiry grants consents for RWSS but the final conditions set for Plan Change 6 may impact adversely on affected farmers and the viability of RWSS. A Final Decision is expected from the Board of Inquiry by 28 June 2014.
7. Notes HBRIC Ltd has extended Financial Close and the requirements for satisfaction of its Conditions Precedent to 30 September 2014.
8. Resolves to invest up to $80 million in RWSS subject to Council being satisfied with:
8.1. its own legal advice on the RWSS documents and all related legal matters;
8.2. a further review of the final RWSS business case as at the new Financial Close and Council being satisfied with its advice and the steps taken (if any) by HBRIC Ltd to resolve key issues of concern (if any) then identified in the course of Deloitte's review;
8.3. advice from HBRIC Ltd that all Conditions Precedent to Financial Close of the investment by all investing parties in the Ruataniwha Water Storage Scheme Limited Partnership (RWLP) have been either satisfied or waived by agreement of the parties. These Conditions Precedent are:
8.3.1. The EPA granting satisfactory resource consent conditions for RWSS infrastructure and operations, which in turn are recommended as being workable by all investors;
8.3.2. Agreements to purchase a minimum of 40 million cubic metres of water per annum (Water User Agreements) and that the RWLP has committed to supply a minimum of 40 million cubic metres;
8.3.3. Securing the funding required to build and operate the RWSS infrastructure; and,
8.3.4. Obtaining a bankable construction contract which adequately addresses construction risk allocation through a fixed-time, fixed-cost arrangement.
8.4. a Certificate issued by HBRIC Ltd's legal advisers:
8.4.1. summarising the terms of all executed Water User Agreements;
8.4.2. identifying the water user parties who executed the Agreements; and,
8.4.3. explaining the enforceability or otherwise of the Agreements.
8.5. HBRIC Ltd increasing its annual distributions to HBRC to provide a 6% return to HBRC on the funds HBRIC Ltd draws down from HBRC from time to time to invest in the RWSS, up to a maximum investment of $80 million.
9. Requires HBRIC Ltd to keep the Council informed on progress toward meeting the conditions stipulated in Recommendation 2 over the period to the new Financial Close.
10. Advises all submitters to the Special Consultative Procedure of its decisions, in writing, and thanks them for their input.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder.

”Stocks of dairy commodities are building across the globe due to Russia’s current ban on importing dairy products from many Western nations, and a lack of urgency from Chinese buyers, while at the same time global milk supplies are expanding,” AgriHQ dairy analyst Susan Kilsby said in a note. More>>

 

Slippage: NZ Universities Still In Top 3% Globally

This year the University of Auckland ranked 175 (down from 164 last year); the University of Otago ranked 251-275th (down from 226-250), both Victoria University of Wellington and the University of Canterbury held their ranks (at 276-300thand 301-350 respectively), while the University of Waikato dropped from 301-350 to 351-400. More>>

ALSO:

Gordon Campbell:
On The Last Rites For The TPP

The Trans Pacific Partnership trade deal is one of those litmus issues that has always had more to do with one’s place on the political spectrum than with any imminent reality... For the TPP’s friends and foes alike though, the end now seems nigh. More>>

Gordon Campbell: On The Farcical Elevation Of David Seymour

With the election won, it’s time to find jobs for the boy. David Seymour is the Act Party’s latest scrounger to be rewarded by the National Party, and not only with a seat in Parliament. More>>

ALSO:

As Key Mulls Joining ISIS Fighting: McCully Speech To UN Backs Security Council Bid

It is an honour to address you today on behalf of the Prime Minister and Government of New Zealand. Our General Election took place last week - our Prime Minister Rt Hon John Key is engaged in forming a government and that is why he is unable to be here in New York... More>>

ALSO:

Labour: Cunliffe Triggers Party Wide Leadership Contest

David Cunliffe has resigned as Labour Leader, but says he will seek re-election... If there is any contest the election will have to go through a process involving the party membership and union affiliates. More>>

ALSO:

Flyover Appeal: Progress And Certainty, Or Confusion And More Delays?

Lindsay Shelton: The Transport Agency, embarrassed by the rejection of its flyover alongside the Basin Reserve, says it’s appealing because the decision could “constrain progress.” Yet for most clear-sighted Wellingtonians a 300-metre-long concrete structure above Kent and Cambridge Terraces would in no way be seen as progress… More>>

ALSO:

Gordon Campbell: On Cunliffe’s Last Stand

Right now, embattled Labour leader David Cunliffe has three options. None of them are particularly attractive for him personally, or for the Labour Party... More>>

ALSO:

Key Seeking 'New Ideas': Look To Children’s Commissioner On Poverty - Greens

John Key should not reinvent the wheel when it comes to ideas for tackling child poverty, and instead look to the recommendations of the Children’s Commissioner’s Expert Group on Child Poverty, Green Party co-leader Metiria Turei says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news