13 May 2016

The Council gives irrigators time to commit funding

The Council has agreed to provide the Waimea Community Dam Company Limited(WCDL) more time to work with Crown Irrigation Investments and its other stakeholders to enable the proposed Waimea Community dam to be funded.

In recommending that WCDL be given more time, Council CEO Lindsay McKenzie said the extra time would not place the project at risk.

“We can push the time line out by up to 6 months without too much difficulty although changes to the timing of water allocation regime in the TRMP will be needed. Securing funding to bridge the gap between what the Council has budgeted and the project’s cost is critical to the project’s future.

“The Council wouldn’t be taking this step if it didn’t have confidence that the funding gap to be met by irrigators and external sources was achievable. John Palmer, who is providing support to WCDL, has briefed the Council and is optimistic about the company’s bid to raise the sum needed for the $82.5m project.

“We are talking with the appropriate agencies, including the Crown Irrigation Investment Limited managers, and they believe we have a very supportable project,” he said

“When we gain clarity on their position, and the prospects of other funding sources, we will have a better idea as to the level of investment irrigators will have to make for the project to move forward. Once that is known I think we can make a good investment case for irrigators to commit their support to the project as partners with the Council.”

“The dam remains the best single solution to the social, environmental and economic issues facing the area due to the lack of a secure supply of water. We need to give the project every chance of success. Residents have been very clear about the level of support we can provide via the Council’s Long Term Plan with the bulk of the funding coming from external sources as well as irrigators,” concluded Mr McKenzie.

ENDS

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