The Hawke's Bay's Ruataniwha Water Storage Scheme has been dealt another blow after the South Island's Ngai Tahu followed Trustpower in withdrawing from the irrigation project.
The proposed development is part of the wider Tukituki Catchment Proposal that was granted resource consents by a Board of Inquiry last month. However, the board imposed more stringent conditions on run-off into waterways that undermined the economics of the scheme for farmers.
Ngai Tahu had been relying on the technical expertise of Trustpower, which in March withdrew from a memorandum of understanding to fund up to $60 million of the cost of the project, saying it didn't meet its risk and return framework.
Hawkes Bay Regional Council today confirmed Ngai Tahu has withdrawn from the MOU.
"Ngai Tahu have been looking for a partner with infrastructure expertise as well as an entity already operating in the South Island," said council chief executive Andrew Newman. "Trustpower brought both of those qualities to the table and Ngai Tahu were depending on an investor partner to meet those needs."
The council's Hawke's Bay Regional Investment Company is pressing ahead with "gaining workable resource consents through the Environmental Protection Authority's Board of Inquiry, and the signing of Water User Agreements with farmers," it said. It is talking to other potential investors.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Dunne warns of 'consequences' if Maori Party supports RMA reform
- iPredict closing down due to money laundering risk
- Serco's prison report challenge: Hide and Davis go head-to-head
- Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
- Arvida beds down operations and promises more for year end
Most listened to
- “A very ballsy thing to do” – Rodney Hide and Kelvin Davis discuss Serco’s response to Correction’s Mt Eden Prison report
- “The response from shareholders has been overwhelming” — A2 Corporation chief executive Geoff Babidge
- Greg Gent says a board of 13 people is "prehistoric"
- Arvida CEO Bill McDonald on his company's half-year net profit
- Lance Wiggs on the future of food exports
- Auckland Councillor Chris Darby on the Council's alternative funding report
- Nevil Gibson discusses his latest Editor's Insight on oil prices
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories