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

 

Crucial irrigation project seeks external investment

Crucial irrigation project seeks external investment to progress

The much-needed Hurunui Water Project (HWP) irrigation scheme for the drought-stricken areas of Hurunui in North Canterbury is seeking further financing to get the project to a commercial-ready stage.

HWP is behind the Waitohi Irrigation Scheme which has been hampered by unexpected and extraordinary delays due largely to the changing legislative and regulatory environment over the last seven years (see History of Scheme Development attached).

HWP Chief executive Alex Adams says shareholders have invested $10 million to date but a further $1 million external financing is required to move the project to a commercial-ready stage and be able to access $1.1 million available from the Government’s Irrigation Accelerated Fund (IAF) scheme.

“Our farmer shareholders face compounding challenges with drought and lower dairy returns, so external investment is now required to allow the scheme to proceed to the next important phase,” says Adams.

The scheme had nine consents granted in 2013. Two appeals were lodged and are awaiting a final Environment Court ruling, following a mediated agreement in February this year. There were no appeals of an environmental nature.

“We are ready to proceed with further investigation work followed by engineering and economic modelling to have the first stage commercial-ready when the consents become unencumbered but further investment is required,” says Adams.

He says the development of the scheme has been impacted by the introduction of a new legislative and regulatory regime related to fresh water management but the operating company remains confident about its future.

“While it’s undoubtedly great for the long-term fresh water management of New Zealand, the timing of new policies and regulations, including the introduction of the 2010 Environment Canterbury Act, relating to improved water management, and the introduction of nutrient load limit regulation, has caused unanticipated delays to this particular project,” says Adams.

“There’s a lot at stake, not only the original investment and the wellbeing of those in the Hurunui District but also a significant $100 million economic boost to the regional economy and an estimated 680 jobs that could be lost if the initial scheme cannot continue apace.”

Adams says HWP is in discussion with some parties regarding the required financing, including Government, and seeking interest more widely.

“For the benefit of the wider community and our shareholders who have already made a significant outlay, we’re hopeful that there can be an exceptional response to our requirement for external financing because of the extraordinary set of circumstances surrounding the project’s development,” says Adams.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

DoC: A Tale Of Two Halves For Rock Wren/Tuke
It’s a tale of two halves for rock wren/tuke with their fortunes hanging on effective predator control, the latest South Island-wide survey shows. The Department of Conservation monitoring programme, now in its third year, tracks populations of this small alpine bird... More>>


TradeMe: Wages Remain Hot While Job Listings Cool Off
Salaries are skyrocketing in the regions as Kiwi employers battle to attract staff and combat the rising cost of living, according to the analysis of over 77,000 vacancies listed on Trade Me Jobs for the quarter ending 30 June (Q2)... More>>



Tegel: Chicken Prices On The Rise But It’s Still The Favourite Protein For Kiwi Families

A combination of domestic and international factors is forcing New Zealand’s largest poultry supplier Tegel to raise its prices from July. The roughly 10% price rise is a result of ongoing cost pressures on the industry, including increases in labour... More>>



Motor Industry Association: New Vehicle Registrations Soften

The Motor Industry Association’s Mark Stockdale says that 12,049 registrations of new vehicles for the month of June shows the market is weakening in the face of raising costs of living... More>>



MYOB: New Data Shows Increase In SMEs Experiencing Stress And Anxiety

The lingering impacts of the COVID-19 pandemic have led to a surge in the number of local SME owners and operators experiencing stress and anxiety, according to new research from business management platform, MYOB... More>>



Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>