Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Deloitte says Ruataniwha assumptions "reasonable"

Deloitte says Hawke’s Bay council’s Ruataniwha scheme assumptions are ‘reasonable’

By Suze Metherell

April 24 (BusinessDesk) – A Deloitte review of the Hawke’s Bay Regional Council’s proposed $80 million investment in the $265 million Ruataniwha Water Storage Scheme is satisfied with the business plan, provided uptake by users is timely.

The Deloitte peer review of Hawke’s Bay Regional Investment Company’s business plan found the proposed up front capital infrastructure investment, overall cash flow and ownership model and risk management to be reasonable, but flagged the risk of slow customer uptake in the irrigation scheme as “the key risk.”

“Deloitte has identified the key risk to the project as the length of time being taken to get to full uptake of water, although they recognize that demand will eventually outstrip availability as the demand for water continues to increase,” the regional council said in a statement. The interim Deloitte report comes ahead of a final version, to be discussed at the council’s May 28 meeting.

Last month Trustpower, the electricity company controlled by Infratil, terminated its memorandum of understanding with HBRIC and fellow backer Ngai Tahu Holdings, which would have seen it invest between $50 million and $60 million of the total cost of the project. At the time Trustpower said the scheme wasn’t within its risk and return framework.

Ngai Tahu has since expressed reservations about its continued involvement. Funding is required from the government’s Crown Irrigation Investment Company under the plan for the scheme, but this will not be forthcoming without sufficient private sector backing.

Earlier this month the Tukituki Catchment Proposal Board of Inquiry granted 17 resource consents in a draft decision, allowing the proposed Ruataniwha dam to go ahead in principle.

The regional council receives the final Deloitte report next week and will vote on Wednesday on whether to start public consultation on the investment proposal.

The regional council’s investment arm argues the scheme has the potential to supply water for irrigated farming and horticultural uses to between 25,000 and 30,000 hectares of land, and would create about 2,520 jobs for the region.

“Deloitte has identified the key risk to the project is the length of time being taken to get to full uptake of water, although they recognize that demand will eventually outstrip availability as the demand for water continues to increase,” the council statement said.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news