Hawke’s Bay Regional Council has received confirmation that further conditions required for it to sign-off on its $80 million dollar investment in the Ruataniwha Water Storage Scheme have now been met.
At an extraordinary meeting today the Council agreed that three conditions have now been satisfied. These relate to consents for the scheme, the design and construction contract and water user uptake.
After reviewing a report from its investment company HBRIC Ltd the Council agreed that three of the four conditions it required before investment could proceed have been met. It agreed that after an extensive Board of Inquiry process the scheme has the necessary consents to proceed, it has a bankable fixed term-fixed price design and construction contract and farmers have signed up to take more than 40 million cubic metres of water.
Council heard from HBRIC Ltd that the fourth and final condition relating to investment in the scheme is almost satisfied and will be confirmed to a Council meeting in the next few weeks.
The Council also discussed a Deloitte Peer Review of the final Ruataniwha Water Storage Scheme Business Case. The review supported the content and conclusions of the business case as being robust. A positive review of the Business Case had been an important consideration for the Council.
Accordingly, the Council authorised Council management to prepare the drawdown of $80 million, less development costs for investment in the Ruataniwha Scheme.
Hawke’s Bay Regional Council Chairman Fenton Wilson says this is a significant milestone for the scheme, however there is more work to be done by HBRIC Ltd before financial close, which is expected to be within the next few weeks.
HBRIC Ltd will now complete negotiations with other investors.
The timing of the drawdown will be subject to confirmation of full access to the land proposed for exchange with the Department of Conservation, or adequate financial protection of Council funds
4 November 2016
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