Crown investment in dam plan may reach up to $25m
A Government-funded investor has signalled it could pump up to $25 million into the proposed Waimea dam, making the controversial project seem far more likely.
The board of Crown Irrigation Investments Ltd along with its chief executive, Murray Gribben, visited the Lee Valley site of the proposed dam yesterday and then took a tour of some horticultural properties on the Waimea Plains.
Gribben said the proposed dam was ‘‘certainly in the sweet spot’’ for investment by Crown Irrigation, which acts on behalf of the Government as a bridging investor for regional water infrastructure development.
He said he expected a $20m to $25m investment could be made.
‘‘It seems to be a fantastic project,’’ Gribben said of the proposed dam.
The long-term benefits of highly productive land were part of the considerations.
‘‘The thing for me is going around Waimea Nurseries, the productivity the water provides is phenomenal,’’ Gribben said.
With the Tasman climate, when water was added to the sun ‘‘you’ve got 12 months of growing’’.
Crown Irrigation had been in discussions over the past two years with other parties involved in the dam proposal including Tasman district and Nelson city councils along with irrigator group Waimea Community Dam Ltd around ‘‘what role we could potentially have’’.
Gribben said it was difficult to put a time frame on when a decision could be made. The other parties were still ‘‘getting their ducks in a row’’.
Waimea Community Dam Ltd chairman Murray King said the visit by Crown Irrigation was ‘‘really encouraging’’.
‘‘It’s from the result of a lot of work that people have put in over a period of time,’’ he said.
Crown Irrigation could see ‘‘genuine opportunity from this project’’ including the positive effect on the regional economy of high-value horticulture, King said.
If Crown Irrigation did invest $25m in the project, that would be about $17m more than what was tipped in earlier funding models by both Waimea Community Dam Ltd and TDC. Tasman District Council has earmarked $25m in its Long Term Plan for the project.
Its funding model indicates a city council contribution of $4.4m for the dam, which TDC estimates will cost $82.5m.