Irrigation scheme growing

A 10,000ha expansion to a North Otago irrigation scheme, estimated to cost about $52 million, is on track for water to be delivered in September next year.

The first 10,000ha stage of the North Otago Irrigation Company's scheme was built in 2006 and a second stage, always planned, is coming to fruition with sufficient of the shares being sold to farmers.

The second stage is expected to bring similar benefits to North Otago as the first, a 2010 study showing it had created 76 jobs on farms that now earn $44 million a year more. Since then, on-farm development has continued.

For the second stage, the company was offering 7969 shares and needed to sell about half for it to go ahead.

Chief executive Robyn Wells said that 5346 shares had been sold up until the end of March, enabling the company to start finalising designs to deliver water to those who wanted it.

A drought in North Otago had also placed considerable pressure on the company, delivering a record of almost 40 million cubic metres of water in February, 82% more than the same month last year.

It exposed issues around supply to existing farmers, some of which would be resolved in the design of stage 2.

As a result of the demand for stage 2 shares, another 20km of pipe had been added to the original concept design, taking in Round Hill and now incorporating two lines as far as just north of Herbert.

The company had about 2600 shares left before stage 2 would be fully allocated.

A design, engineering and construction management contract had been signed with AECOM (formerly URS) and the company was close to signing a construction contract with McConnell Dowell.

Once that was completed, it would have an accurate cost for the expanded design.

Ms Wells said the company was working with landowners to get access for investigations, design and eventual construction.

Pits and hand augers for samples would confirm ground conditions and backfill requirements.

Land use resource consents had been filed with the Waitaki District Council and Otago Regional Council.

The company already had water consents for about 8cumecs from the Waitaki River which covered the second stage.

Pipes would be ordered by April 15.

There were five separate parts to the project - additions to pump stations one and two, expanding the head pond, improving the network in the Glen Settlement area and the kakanui network.

The expansion will be funded by farmers, a $17.5 million loan from the Waitaki District Council and a loan from ASB bank, which has been involved with the company from the start.

david.bruce@odt.co.nz

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