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Last updated: 2 August, 2010
Name of Applicant Group: Hawkdun Idaburn Irrigation Company
Contact person: Ken Gillespie
Address: Glen Ida, RD2 Oturehua
Telephone 1: 03 444 5817
Telephone 2: 027 221 1736
CIF funding: $11,000
Total project funding: $22,000
Proposed start date: 2008-07
Proposed finish date: 2008-09
Mt Ida dam site inspection notes
Mt Ida dam final report
To raise awareness of a proposed major 15m³ irrigation storage with community and interest groups.
To develop a proposed management structure and funding model to progress the project.
The opportunity exists to utilise winter and spring runoff through storage in a major new reservoir using existing water take consents. This will enhance to opportunity for agricultural production and reduce production variability for up to 2000 ha in the dry areas of the Maniototo and Ida Valley in Central Otago.
No major irrigation infrastructure has been constructed in this area since the 1930s. The proposal is reliant on water from mountain streams captured by way of the Mt Ida Water Race. The water take consents were recently granted and do not expire until 2037. The area is subject to climatic extremes and improving access to irrigation water in the summer – autumn through storage is one method of reducing the risks.
The proposal is for a 35m high storage dam supplied by the Mt Ida Water Race strong 15Mm3 of water. This would enable a high reliability of supply to 2,200 hectares of new irrigation area and a slightly improved reliability to an existing 3,450 hectares. This project was for firming up on financing and management options.
Response from Government on provision of funding has been that they will only consider involvement with finance once all other avenues have been exhausted.
The 2006 estimated capital costs for the proposal were updated to $25, excluding GST.
Craig Wyatt then prepared a scenario using 8 percent loan finance and 25 percent of the cost of the new dam being met by existing irrigators. New irrigation of 2,200 hectares would be funded by an upfront purchase of shares (for 5000m³ water = 500mm over 1 hectare) at $4,250 per share and the balance by way of loan finance over 25 years.
Management structure proposed was confirmed as being under the Hawkdun Idaburn Irrigation Company Limited but with a different class of share.
A brochure has been circulated to all potential irrigators under the new dam and also to all existing shareholders of HCIL. A survey questionnaire has been included for return by end of July 2010.
No response to the CODC request for loan finance at rates available to the government in order to progress the projects had been received by 28 February 2010.
Craig Wyatt of Harvie Green Wyatt prepared a paper on finance options looking at various interest rates and based on a 27 year repayment timeframe equal to existing resource consents for irrigation takes. This presented annual charges based on various assumptions. At a meeting of the Directors of HIICL and two of the larger potential irrigators it was decided that this paper could not be taken back to the local community without a firming up on the interest rates. To this end the CODC was encouraged to convene a meeting of other community irrigation developments in Central Otago to pursue a joint approach to Government. The meeting was held in Alexandra on 30 September 2009. A paper has been prepared by the CODC to seek loan finance at rates available to the government in order to progress these projects.
The project had a successful field day at the proposed dam site on 12 February 2009 to inform the community and other interested parties of the scale and nature of the proposal. The proposal was generally well received and additional water storage considered necessary for this part of Otago. About 80 people attended including representatives from MAF, Otago Regional Council, Central Otago District Council, DoC, Fish & Game and local community and prospective irrigators.
Meeting held on 8 April 2009 at Wedderburn for potential irrigators was attended by 32 people representing over 15,000 ha. There was unanimous support to progress with financing and management options to provide a sound basis for individuals to confirm the viability for their properties.
The project had a successful field day at the proposed dam site on 12 February 2009 to inform the community and other interested parties of the scale and nature of the proposal.
The proposal was generally well received and additional water storage considered necessary for this part of Otago. About 80 people attended including representatives from MAF, Otago Regional Council, Central Otago District Council, DoC, Fish & Game and local community and prospective irrigators.