What form it would take was being worked through with the contractor in a redesigned scheme to meet the demand from farmers who had committed through the share uptake, Hunter Downs Water (HDW) project manager Stacey Scott said.
The deadline for the uptake of water and development shares in the $195m scheme was on April 28, after its initial April 10 deadline was extended.
At the time of the extension Scott said April 28 was the absolute deadline for the scheme and it would not go ahead unless enough shares were sold.
“We have a consent that is in its last round of renewal and we have a very favourable nutrient discharge permit that will not be granted again.”
The opportunity before farmers would not come again, Scott said.
However, despite the shortfall in share uptake, HDW had confirmed its commitment to proceed with a redesigned scheme that would meet the demand.
“We are also engaging to confirm the economic viability to reflect scale around the demand committed,” Scott said.
That, together with the next steps, would be shared with the farmers who had backed the scheme to take water at a meeting planned for May 15.
Scott would not be drawn on what level of support the scheme had received nor what the capital-raise shortfall was.
“We will be in a position to give that detail after the meeting on May 15. Meantime it is positive for a go-ahead in a redefined form,” she said.
HDW chairman Andrew Fraser said while the demand did not support the proposed 21,000 hectare scheme, there was strong support for an irrigation scheme that would further secure the future of farming and the economy of South Canterbury.
He encouraged farmers who had not yet committed but who were still interested to ensure they confirmed with HDW before May 15 so their interest was taken into account in future planning.
A total 21,000 shares were available at one share a hectare of irrigation with a seasonal allowance of a maximum 2.65 millimetres a day through the season from September to April or May.
Up to 200 shareholders were expected to subscribe to the scheme that was designed for 161 water users with a maximum 214 offtakes.
Stage one construction was scheduled to start this month with a commissioning date of spring 2019.
HDW proposed to use water from the Waitaki River to irrigate farmland between Timaru and Waimate.
The scheme received a $1.37m funding boost earlier in the year from Crown Irrigation Investments.
The cost equated to $9285 a hectare.
The economic viability and success of the final scheme would be driven solely by the uptake of water shares, Scott said.
“We will build a scheme based on the demand that has been committed.”
Stakeholders would be involved in assessing the next step as more details on the demand became available.
