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

Gordon Campbell:
On The Inadequate Response To Sexual Violence Prevention

On combatting sexual violence, the government has finally begun to undo some of the problems that were of its own making. Early in March, ACC launched the Integrated Services for Sensitive Claims scheme – a package aimed at improving the attitudes of ACC staff towards sexual violence victims, and offering them more substantive support.

Hopefully, this will help to reverse the damage done with the insensitive, punitive ACC policy put in place by the incoming Key government in 2009, which in some parts of New Zealand, saw 90 per cent of sexual violence victims being turned away by ACC. More>>

 

PARLIAMENT TODAY:

"To Help Families Get Ahead": April 1 Changes Kick In

Prime Minister John Key says Paid Parental Leave, the parental tax credit, the minimum wage and Superannuation will increase, while average ACC levies will fall, and more people will be helped in to home ownership... More>>

ALSO:

Climate: Ministers Exclude Emissions From ‘Environment Reporting'

The National Party Government has today revealed that the national environmental report topics for this year will, incredibly, exclude New Zealand’s greenhouse gas emissions, the Green Party said today. More>>

ALSO:

No Retrial: Freedom At Last For Teina Pora

The Māori Party is relieved that the Privy Council has cleared the final legal hurdle for Teina Pora who was wrongfully convicted of murder and sent to prison for 22 years. More>>

ALSO:

Germanwings Crash: Privacy Act Supports Aviation Safeguards In New Zealand

Reports that German privacy laws may have contributed to the Germanwings air crash have prompted New Zealand’s Privacy Commissioner to reassure the public that the Privacy Act is no impediment to medical practitioners notifying appropriate authorities to a pilot’s health concerns. More>>

ALSO:

Treaty: Taranaki Iwi Ngāruahine Settles Treaty Claims For $67.5mln

The settlement includes a $13.5 million payment the government made in June 2013, as well as land in the Taranaki region. The settlement also includes four culturally significant sites, the Waipakari Reserve, Te Kohinga Reserve, Te Ngutu o te Manu and Te Poho o Taranaki. More>>

ALSO:

Gordon Campbell: On A Funeral In Asia, The Northland By-Election, And News Priorities

Supposedly, New Zealand’s destiny lies in Asia, and that was one of Foreign Minister Murray McCully’s rationales for his bungled reforms at MFAT. OK. So, if that’s the case why didn’t Prime Minister John Key attend the state funeral on Sunday of Singapore’s founding leader Lee Kuan Yew? More>>

ALSO:

Werewolf Satire: Not Flag-Waving; Flag-Drowning

The panel choosing the flag options has no visual artists at all. Now, I’ve kerned the odd ligature in my time and I know my recto from my French curve so I thought I’d offer a few suggestions before they get past their depth. More>>

ALSO:

IPCA Reports: Significant Problems In Police Custody

In releasing two reports today, the Independent Police Conduct Authority has highlighted a number of significant problems with the way in which Police deal with people who are detained in Police cells. More>>

ALSO:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news