Council approves advance of funding to Investment Company

Hawke’s Bay Regional Council has voted to approve an advance of $3.1 million to the Hawke’s Bay Regional Investment Company Ltd (HBRIC Ltd) to cover the period until financial close on the Ruataniwha Water Storage Scheme.

The decision was made in a public excluded session of Wednesday’s council meeting and supported by all councillors present.

All investment funds contributed by the Hawke’s Bay Regional Council in this development phase are part of its overall financial contribution to the Ruataniwha Water Storage Scheme. The Council resolved in June to invest up to $80 million, subject to HBRIC Ltd meeting certain conditions.

Of the total development costs incurred by HBRIC Ltd, $1.93 million was for the Board of Inquiry process for the Council’s Plan Change 6. These costs would otherwise have to be met from Council’s own operating budget.

Given the lodging of appeals to the High Court on the proposal, financial close for the scheme will no longer occur by 30 September 2014, with the best estimate now 31 March 2015.

While provision for $3.1 million has now been made, the bulk of these costs will be incurred after the High Court decisions on Appeals to the Board of Inquiry.

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