A budget of $750,000 has been approved by the Clutha District Council for an extension to the water supply in Milton.
In the council meeting agenda for October 6, a report stated the council was approached by a ``large industrial customer'' in the Milburn area north of Milton to connect to the nearby urban water supply.
The council was unable to confirm the identity of the industrial customer when asked.
Cost estimates for the extension had been prepared and it was found it was possible to supply water to the Milburn area without affecting other customers.
One of the design issues for the project was the need to provide flows for firefighting in the area.
After discussions with the council, the new customer would be required to pay for the cost of the system, while the council would pay for any additional capacity, such as increasing the pipe size.
The council had until February next year to complete the extension and had started an invited tender process to get the work done.
A budget of $750,000, plus GST, was approved at a council meeting to discuss the project.
Up to $100,000 of it would be funded from the urban water reserves fund for additional pipeline capacity.
The balance would be funded by the customer.
A pipeline construction tender would not be awarded until a water supply and funding agreement was signed in accordance with the council's budget for the project.
A supply and cost agreement would be finalised once the tender price was known, to minimise the risk to the council caused by the project.
