Hawke’s Bay Regional Investment Company Ltd has sufficient water uptake through signed water user agreements to proceed to finalisation of the Scheme.
HBRIC Ltd’s Chief Executive Andrew Newman today advised Hawke’s Bay Regional Council that the company has 196 water user agreements signed or confirmed, and several more at advanced negotiation as well as call options for water user agreements. The aggregate number between contracted water, water under negotiation and water in call options is 48.5 million cubic metres.
The total water contracted today is 42.8 million m3 which is in excess of the formal HBRC Condition Precedent.
We have a high degree of confidence in closing the agreements that are still in negotiation, and about the call options. A figure of 50 million cubic metres of water is now a realistic target by June,” said Mr Newman.
He explained that 8.4 million m3 of deep water is contracted which will take the pressure off the aquifer and bring environmental benefits.
HBRIC Ltd has seen an increased momentum in the take up of agreements in the last three weeks, which went from 161 to 196. This is also leading to a greater number of external parties firmly indicating their intention to enter the area.
“Overall, the Central Hawke’s Bay community has unequivocally demonstrated its commitment to and desire to see the Ruataniwha water storage scheme go ahead. The landowners and businesses can see the long term benefits of having more water available for both the environment and the economy,” Mr Newman said.
He explained that a livestock and arable farming is emerging as the most likely land use, including some high value cropping, while dairy uptake is as expected with water supply from the scheme improving production reliability. Permanent horticulture and viticulture will evolve as part of the land use mix.
Next steps will be for HBRIC Ltd to lift the water contracted number. Other investors will need to confirm their commitment before the path is clear to move to the construction phase.
For further information please contact:
Andrew Newman, Chief Executive, 06 835 9202, 027 344 6300
Susan Wylie, Senior Communications Coordinator, 06 835 9208, 027 256 8549.
27 May 2016
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