Shares in the Hunter Downs irrigation scheme are now for sale.
Water shares and development shares became available on Friday, after the company behind the project registered its product development statement with the Financial Markets Authority (FMA).
Hunter Downs Water Ltd director Stacey Scott told Central Rural Life it was a ‘‘monumental’’ achievement to be able to offer shares.
‘‘This project has got to the stage where it’s now or never. Everything’s lining up. We need commitment to build the scheme.’’
It was up to the community whether that would happen, Mrs Scott said.
People had until April 10 to take up the share offer. That was not long, but a great deal of work had already been done to consult and inform landowners in the affected area, Mrs Scott said.
'‘We’ve got a wonderful board and a great team of advisers.’’
The project would use Waitaki River water to irrigate 21,000ha in a 68,000ha command area towards Timaru. The scheme design allows for 161 water users, with a maximum of 214 offtakes. The water application rate would be 2.65mm per day.
The projected total cost of building the scheme is $195 million or $9285 per hectare. Funding costs were based on borrowing $140 million, repaid over 42 years at 5% interest. If 21,000ha was irrigated, the annual perhectare operating costs were estimated to be $295 and funding costs $385, totalling $680.
Last week Primary Industries Minister Nathan Guy announced Hunter Downs Water Ltd was getting a $1.37 million development grant from Crown Irrigation Investments Ltd. Mrs Scott said that was ‘‘a really good outcome’’ from the company having worked closely with the Crown to secure the funding.
Hunter Downs Water had been ‘‘privileged’’ to receive support from the ministry’s Irrigation Acceleration Fund. The latest announcement showed a successful transition from one government agency to another, she said.
‘‘We’re really relieved.’’
Mr Guy said the grant was ‘‘an important step forward’’ for the scheme that could have major advantages for South Canterbury.
‘‘The environmental and recreational benefits from this project include increased flows in surface waterways and in the Wainono Lagoon, protection of mudfish habitats and improved game bird and trout habitats.
The ultimate fate of the irrigation project depended on landowners’ decisions on buying shares, Mrs Scott said. She believed it would ‘‘open options to all farming systems’’.
If enough shares were sold, construction could start this winter and commissioning in spring 2019.
-By Alexia Johnstone