29 January 2016

HBRIC Ltd Update

Finalising the investor mix for the Ruataniwha Water Storage Scheme is the current focus for the Hawke’s Bay Regional Investment Company Limited.

In its monthly report to the Hawke’s Bay Regional Council on Wednesday, HBRIC Ltd Chief Executive Andrew Newman said it was making good progress with potential investors, including two institutional investors, Crown Irrigation Investments Ltd and banks re debt funding. HBRIC Ltd hopes to be in a position to announce a preferred investor soon.

Water Uptake
Work on the water uptake work stream has been in a holding pattern over the holiday period awaiting sufficient clarity around the investor mix before gearing up again.
To date there has been 31 million cubic metres of water signed up with a further 11 million cubic metres in the contracting phase. The water uptake will be the final condition to be met.

Funding
HBRIC Ltd has received $575,000 from the Government’s Irrigation Acceleration Fun to help fund early geotechnical works at the proposed reservoir site. This was less than applied for and HBRC has given HBRIC Ltd approval to increase its borrowing level from $2.5 million to $3 million to enable the work to continue.

DOC Land Exchange Judicial Review
HBRIC Ltd continues to wait for a decision on Forest & Bird’s judicial review of the Department of Conservation land exchange. Forest & Bird believe the Department of Conservation should have reviewed the conservation values of the 22 hectares of Ruahine Forest Park to be exchanged in isolation, then considered the exchange proposal. A decision is expected at any time.

ends