Govt has plans for irrigation PPP
The government is opening the way for increased private investment in irrigation schemes.
The government is opening the way for increased private investment in irrigation schemes.
Next week's budget will allocate $35 million over five years toward the Irrigation Acceleration Fund, to support the development of irrigation infrastructure proposals to the investment-ready prospectus stage, Agriculture Minister David Carter said today.
It is the first stage of a process that will see the government, in a future budget, consider investing up to $400 million of equity in the construction of regional-scale schemes to encourage third party capital investment.
How that second stage will be funded is yet to be finalised but it is expected to be available from 2013-14. Mr Carter said the Crown would be a minority partner, investing on commercial terms, to give confidence to capital markets to invest in large-scale irrigation schemes.
"Well-designed storage and irrigation infrastructure has the potential to deliver significant, sustainable economic growth," he said.
Research by the New Zealand Institute of Economic Research suggested the fund could support 340,000ha of new irrigation, Mr Carter said, which could boost exports by $1.4 billion a year by 2018, rising to $4 billion a year by 2026.
Well-designed storage and irrigation infrastructure was also good from an environmental perspective, Mr Carter said. "More reliable access to water will lead to more efficient use of water and can provide for the replenishment of aquifers and the restoration of streams and river flows."
Colin Williscroft
Mon, 09 May 2011
Mon, 09 May 2011
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Govt has plans for irrigation PPP
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