If the dam goes ahead, it would be built on the headwaters of the Makaroro River in Central Hawke’s Bay.
Fundraising for a new dam in Central Hawke’s Bay has raised enough cash to get a feasibility study off the ground.
A group of about 60 Hawke’s Bay businesses and water users have now given the Tukituki Water Security Project (TWSP) almost $3.8 million in co-funding, dam proponents announced on Monday.
The funding triggers access to a further $3m grant from the Government’s Regional Infrastructure Fund (RIF) for a $6.8m study into the feasibility of the dam.
The dam, if it were to go ahead, would be in the headwaters of the Makaroro River in CHB, on the same site as the ill-fated Ruataniwha Dam concept.
At 83 metres high, the dam would store 104 million cubic metres of water that would distribute up to 14cu m of water a second during dry periods.
TWSL chairman Mike Petersen said the dam and its associated distribution system would likely be the largest capital project ever undertaken in Hawke’s Bay.
“This is a whole catchment-focused project, and will be the largest dam built in New Zealand since Clyde was completed by the Government in 1993,” he said.
“It will be a game changer for our region by improving water security, supporting livelihoods, creating jobs and will be a catalyst for prosperity for the Hawke’s Bay region.
“It will ensure a steady flow of water for people and communities, and grow higher value food production and processing capability of up to 22,000ha of Central Hawke’s Bay land.”
Petersen said he wasn’t prepared to name investors, saying the project was not being publicly led or driven.
“The only entity which comes close to being a public entity is Centralines Ltd - but this is the operating company and not the CHB Consumers Power Trust,” Petersen said.
“We have a mix of investors, including water users, service industry companies, the food and fibre sector and private individuals.
“All of these investors either have businesses in Hawke’s Bay or want to invest in this project because they see it as being a strategically important initiative for the region.”
But a group set up partly in opposition to the dam, Wise Water Use Hawke’s Bay, is calling for transparency.
Its spokesperson, Dr Trevor Le Lievre, said taxpayers were unwitting partners in the venture, having provided $3 million for yet another feasibility study.
“It’s in the public interest to know who these businesses and water users are, given the public is now co-funding this project,” Le Lievre said.
Earlier this year, Centralines’ trustee Tony Murphy resigned after the electricity distributor’s board put $100,000 towards the project.
Feasibility work includes gaining consent through the Fast Track Process and redeveloping dam and distribution concepts to take advantage of new knowledge and concepts that have become available since this project was first contemplated nearly 10 years ago.
A 2021 rescoping study by independent water storage and irrigation advisory firm Lewis Tucker found a water storage dam at the Makaroro site was the most viable and cost-effective option to provide water security for Tamatea Central Hawke’s Bay.
Three independent Regional Economic Impact studies between 2012 and 2017 estimated water storage at the Makaroro site would provide a regional economic benefit of between $230m and $300m and create 2000 to 3000 jobs.
However, Le Lievre said there was no water supply issue in Central Hawke’s Bay.
“We have a problem with how we currently use our water. This is confirmed by a 2023 Council Report, which highlights that CHB has the highest water use for the lowest economic return per capita in Hawkes Bay,” Le Lievre.
“It’s a travesty that this colossal sum of money isn’t being directed into investigating options for water allocation reform and land use change, which is going to be inevitable if we as a nation are to continue farming under climate change conditions,” he said.
Petersen said he wanted to acknowledge Tamatea Pōkai Whenua Chair, Pōhatu Paku, and the substantive engagement and work that had taken place between mana whenua and TWSP.
“While Tamatea Pōkai Whenua continues to frame their full response to the proposal, much of the next phase of undertakings together will inform this decision,” Petersen said.
Leading the project will be former Waimea Water Ltd CEO Mike Scott, who grew up in Hawke’s Bay.
Feasibility work is expected to conclude in late 2026.
LDR is local body journalism co-funded by RNZ and NZ On Air.