Damplan gets $7mgrant

The Government will stump up $7 million for the proposed $82.5m Waimea dam, if the project gets the green light.

Environment Minister and Nelson MP Nick Smith announced the $7m grant yesterday as part of a plan to distribute $44m nationally in the first tranche of funding from the Government’s $100m Freshwater Improvement Fund.

The $7m will go to Tasman District Council over three years for improving water quality and minimum flows in the Waimea River. It is the total amount TDC sought to cover the unfunded ‘‘environmental flow’’ capacity of the proposed dam despite applications for the fund totalling $156m – more than three times the amount that will be allocated.

Smith, a long-time supporter of the dam in the Lee Valley, said it was a ‘‘very strong’’ application from TDC.

‘‘I think the Waimea Community Dam is a no-brainer,’’ he said. ‘‘We collectively, as a community, need to do all we can to get it over the line. I’m hopeful with the Government granting $7m, it will give other funders confidence [in the project].’’

Tasman district mayor Richard Kempthorne said the decision was ‘‘a huge boost.’’

Until now, TDC has provided the only confirmed capital funding for the dam, with $25m earmarked in its Long Term Plan 2015-25. Other potential funders are Waimea Irrigators Ltd, Crown Irrigation Investments Ltd and Nelson City Council.

Smith said the problem of minimal flows in the lower Waimea River and algae blooms that occurred most summers had to be addressed. ‘‘It is inconsistent with Nelson’s strong environmental brand that water quality gets so bad in summer that it can kill dogs. The only practical solution is the Waimea Community Dam that will store water during high floods and replenish the river during summer.

‘‘The alternative of slashing water takes in summer would be devastating for Nelson’s horticul- tural industries.’’

The biggest challenge in progressing the dam project was finding an ‘‘equitable way to share the cost’’.

‘‘There is no magic formula but existing irrigators need to contribute for the water they use, and council for the public good benefits of increasing minimum flows and supporting town water supplies,’’ Smith said. ‘‘The Government is sharing with council in the cost of the environmental benefits with this $7m grant, and has also contributed $1m towards the investigation costs and $25m in capital through Crown Irrigation Investments for the water stored for future irrigation.’’

He added that the $1m already contributed by the Government was made up of three different investigation grants over the past 10 years and said the $7m grant would be provided only if the dam proceeded.

Crown Irrigation Investments Ltd acts on behalf of the Government as a bridging investor for regional water infrastructure development. It is tipped to provide $25m as a 15-year loan to Waimea Irrigators Ltd, the council’s likely partner in the dam project.

‘‘This combination of the investigation grants, totalling $1m, this environmental grant of $7m and capital finance of $25m makes this the most generous Government support ever provided for a council water infrastructure project in the Nelson region,’’ Smith said.

‘‘My hope is that it will help councils and landowners contribute their share and advance this critical infrastructure project for the region.’’

Kempthorne said the $7m grant was ‘‘a reflection of the value to the environment that the Waimea dam is providing’’.

‘‘One of the facts we have to face is the degradation of the river during our drier months; an enhanced flow will go a long way to mitigating this. Having a healthy river supported by an enhanced flow will also protect the aquifers from the risk of saltwater intrusion.

‘‘I have heard comment that the scheme will merely allow water to flow out to sea. That’s right, it will. Without the river flowing to the sea it cannot support life in it, support the groundwater and aquifers nor repel saltwater from the aquifers.’’

Kempthorne said there were conditions attached to the grant including that it must be accompanied by other funding streams, the associated accounts needed to be audited and the grant must been used solely for the ‘‘public good’’ portion of the scheme.