Hunter Downs Irrigation Ltd has called for the second capital payment on its shares after studies indicated the scheme, estimated to cost up to $357 million and capable of irrigating up to 32,000ha in the northern area of the Waimate district, was viable.
Shares sold so far cover about 24,000ha.
After a month of farmer meetings, company chairman Andrew Fraser said most shareholders looked likely to recommit to the scheme, despite higher-than-desired scheme costs.
''Overall feedback has generally been good.
''More than 70% of shareholders attended our first meetings at the start of the month and we've since held further meetings with smaller groups,'' he said.
Helping shareholders understand the benefits of irrigation had been important.
''We believe significant support has developed which will enable us to focus on removing costs out of the scheme,'' Mr Fraser said.
The instalment payment on shares would co-fund Hunter Downs Development Company Ltd to undertake further investigative studies.
With strong shareholder support, work would continue on scheme feasibility, particularly land access, land use consents for pipeline construction, further design and who would construct the scheme.
It already has resource consent to take up to 20 cumecs of water from the Waitaki River at the Ikawai-Morven-Glenavy scheme's existing intake at Bell's Pond, Ikawai.
With other requirements being met, construction preparation could start in late 2016, with first water coming on stream in September 2018 and the scheme complete in 2019. Cost estimates for Hunter Downs have come in between $313 million and $357 million.
The total design cost would not be the upfront price of scheme shares as the final capital structure was yet to be determined and would likely include loan funding.
''It's likely $3000 to $4500 per ha could provide the company with the equity needed to support external debt,'' Mr Fraser said.
