Dam's future set to become clearer

The site of the proposed 80m Ruataniwha Dam, over Makaroro River at the upper end, looking toward Dutch Creek. Photo / File

The Ruataniwha dam's future may become clearer next week after a deadline passes for appeals against a related environmental plan.

Opponents of the project have until next Friday to lodge appeals against the final decision of a board of inquiry which last month set environmental rules for the Tukituki catchment where the dam and irrigation scheme would be built.

The $275 million project is being promoted by Hawke's Bay Regional Council through its investment arm, Hawke's Bay Regional Investment Company (HBRIC).

The council plans to contribute up to $80 million towards the scheme, but only if a number of conditions are met - including the project obtaining "workable" consents, clear of any legal appeal, through the board of inquiry process.

HBRIC said last month it was confident the consents issued by the board last month were workable but the project will face further delays if other parties decide to appeal the board's decision.

Gary Taylor, executive director and chairman of the Environmental Defence Society (EDS), said his group was yet to make a final decision on whether to lodge an appeal against the decision in the High Court.

EDS's primary concern with the board of inquiry's decision related to how environmental conditions set for the Tukituki catchment would be enforced, given the potential conflict of interest between the council - as an enforcer of environmental standards - and HBRIC as the driver of the irrigation scheme.

Fish & Game spokesman Don Rood said the organisation was happy with the outcome of the board of inquiry process and was unlikely to appeal.

Fish & Game, Forest & Bird and EDS appealed an earlier version of the board of inquiry's decision, released last year, after which the High Court referred the matter back to the board to amend that earlier decision.

Another condition to be met before the council commits to the project is that HBRIC must pre-sell about 45 per cent of the dam's annual water capacity to Central Hawke's Bay farmers whose properties will be located within reach of the irrigation scheme.

As of last month, HBRIC had signed contracts, or was near to signing deals, amounting to about half the volume required for the scheme to proceed.

But the company has said it does not expect a number of farmers to commit to taking water from the scheme until the consent issue is resolved.

HBRIC has said if no appeals are lodged by next Friday's deadline, it expects to take about four months to satisfy the other conditions required for the project to reach "financial close" and proceed to construction.

As well as selling sufficient water, those conditions include finalising financing arrangements with corporate investors and the Government's water-storage infrastructure funding agency, Crown Irrigation Investments, and signing a construction contract.

If the project is not delayed by a further round of appeals, it is likely water will be available from the dam from late 2018.

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