Nelson Mail

Councils to discuss Waimea dam funding

- Cherie Sivignon cherie.sivignon@stuff.co.nz

Nelson city and Tasman district councils are to enter negotiatio­ns over proposed funding from the city council towards the Waimea dam project.

The city council in May agreed to allocate $5 million in year 3 of its Long Term Plan 2018-28 to the $102m dam project. That grant is conditiona­l on agreement by Tasman District Council for the continuati­on of Nelson’s ongoing rights to access 22,000 cubic metres a day of water from the Waimea aquifers and the opportunit­y for the grant to be transferre­d to a shareholdi­ng in the dam company.

TDC supplies water to Nelson residents and businesses in the Saxton area including the Alliance Nelson plant.

City council chief executive Pat Dougherty on Tuesday said there seemed to be ‘‘some doubt’’ about whether that $5m was committed but an agreement could be negotiated to address those concerns before financial close.

Dougherty’s comments come after TDC financial boss Mike Drummond on August 28 told councillor­s that negotiatio­ns were yet to start with the Nelson council.

The controvers­ial dam project derailed for a few days in late August when Tasman district councillor­s voted 8-6 to effectivel­y stop it after the estimated capital costs jumped about $23m.

However, in a behind-closeddoor­s meeting on September 6, the councillor­s voted 9-5 to revoke their August decision and proceed with the joint-venture project in which TDC is a partner.

Dougherty attended that confidenti­al session and Cr Dana Wensley said his comments were ‘‘pivotal’’ for her. She was one of three councillor­s who voted no to the dam project on August 28 and yes on September 6.

Dougherty said he was not sure which of his comments might have been key for Wensley. He said he spoke about the city council’s water supply and the possibilit­y of providing some water to TDC, which was one of the listed alternativ­e options to the dam.

Dougherty stressed any decision to provide TDC with water would be for the city council to make; he was simply outlining what would likely be in a staff report for his council to consider.

‘‘Fifteen years [provision of water to Richmond] could turn into 71⁄2.’’

NCC chief executive Pat Dougherty

The city council could provide Richmond about 5000 cubic metres a day but if that supply was on a long-term sustainabl­e basis, the system would need to be upgraded, which a ‘‘quick, provisiona­l guesstimat­e’’ indicated could cost $20m to $25m. If that upgrade was brought forward, the recommenda­tion was likely to be that TDC carried most of that cost, Dougherty said.

Also, in a severe drought, Nelson residents would get the first call on water; Richmond would be the first to be turned off. In addition, if the dam did not proceed and there was a moratorium on growth on the Waimea Plains, Nelson city might expect its growth rate to climb.

‘‘Fifteen years [provision of water to Richmond] could turn into 71⁄2,’’ he said.

Any supply of water from the city council to TDC could be expensive ‘‘and wouldn’t be assured’’, Dougherty said.

 ?? MARTIN DE RUYTER/ STUFF ?? The Lee Valley location of the proposed Waimea dam, near Nelson.
MARTIN DE RUYTER/ STUFF The Lee Valley location of the proposed Waimea dam, near Nelson.
 ??  ?? Tasman district councillor Dana Wensley says some comments by Nelson City Council chief executive Pat Dougherty were pivotal for her.
Tasman district councillor Dana Wensley says some comments by Nelson City Council chief executive Pat Dougherty were pivotal for her.
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