HBRC approves extra funding for Ruataniwha Water Storage Scheme

Hawke’s Bay Regional Council has given its investment company HBRIC Ltd approval to borrow up to $2 million so it can continue to investigate the Ruataniwha Water Storage Scheme.

Ongoing delays in the consenting process has meant HBRIC Ltd has been unable to finalise the overriding conditions which will ultimately determine whether or not the scheme will go ahead. These are farmers signing up for more than 40 million cubic metres of water from the scheme, a viable construction contract, investors to back the scheme and workable consents for the scheme.

While the scheme’s consents have been granted and beyond appeal, HBRIC Ltd needs to wait until the Board of Inquiry releases its review of an element of Tukituki Plan Change 6 and whether that in turn means amendments to the consent conditions for the scheme. If the Board does make changes to the consent conditions, those changes can’t prevent the scheme from operating.

After lengthy discussions, in a majority decision today’s Regional Council meeting voted in favour of giving its investment arm, HBRIC Ltd approval to borrow up to $2 million for operational expenses up until financial close, which is now set at four months after the scheme has workable consents which can’t be appealed.

HBRIC Ltd had asked the Council for a further $2 million to undertake pre-construction geotechnical work, but the Council agreed that if HBRIC Ltd wanted to undertake the work before financial close it must return to Council with a separate proposal for it to consider for the funding.

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