Dam project needs investors

IrrigationNZ chief executive Andrew Curtis says there's a wonderful opportunity here for Central Hawke's Bay farmers and businesses to get behind the dam to make it work.

"The Central Hawkes Bay community is now able to be a significant investment partner and take ownership of this project to really drive it forward," he says.

While some parties may naively present TrustPower's withdrawal in a negative light, Curtis says it was very common for irrigation schemes to have changing investment partners in the development stage and that TrustPower had only signed a memorandum of understanding.

"The benefit is that the withdrawal allows more local farmers and businesses to buy into the scheme and we know from history that local people driving local solutions always turn out to be the best for the community in the long run," says Curtis.

TrustPower this withdrew as an investor in the dam saying that it would not be possible to invest within its "risk and return framework".

Trustpower said it had terminated its memorandum of understanding with the Hawke's Bay Regional Council's investment arm, the Hawke's Bay Regional Investment Company and Ngai Tahu Capital Limited, which was signed in September 2013.

Curtis says the Hawkes Bay really needs this scheme to proceed as there's nothing else of significance on the table that would have the ability to reinvigorate the Central Hawke's Bay economy, create jobs and generate new business opportunities.

"You only need to look at the looming drought in the Waikato and Northland to see how the provinces suffer when rainfall is low in consecutive years. This is why it is so important to have the right irrigation infrastructure in place to mitigate environmental impacts. The flow-on effects are felt by everybody, not just those working in agriculture.

"The Ruataniwha scheme is exactly the sort of irrigation scheme New Zealand needs to bring new life to regions like the Hawkes Bay, allowing many of its rural towns to thrive again," says Curtis.