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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news