CIAL spent over $40 million acquiring land in secret deals to build a new, wide-body international airport at Tarras near Wanaka/Cromwell. Video / Supplied
Christchurch Airport bought 750ha of farmland in Tarras in 2020, to build a large-scale airport capable of support flights to Australia, the South Pacific and Southeast Asia, as well as a morethan 2km long runway.
In a letter sent to Christchurch city councillors last night, Christchurch City Holdings (CCHL) chair Abby Foote said work on the airport plans would be slowed down.
“On Monday, the CIAL Board made a decision to slow down any further work on the Central Otago project. That decision is confirmed in the attached letter CIAL have asked to be shared with councillors.
Plans for the airport, which was expected to boast a more than 2km runway, are now on hold.
“In taking the time to reflect on the substantial work done to date - largely focused on proving the aeronautical viability of the land acquired in Tarras, along with potential changes to the national infrastructure planning, funding and delivery frameworks signalled by the new government - the CIAL Board has signalled that a more cautious approach is warranted.”
CCHL supported the decision by the CIAL Board to take more time to understand the impact of material new information and context, she said.
“As a result, we do not expect significant amounts of capital to be committed to further investigations into a new airport in Central Otago in the short-term.
“While CIAL’s landholding is of strategic value, it is our view that this project can only succeed if there is stronger stakeholder alignment around the need for a new airport as a key enabler of sustainable tourism. It will also require confirmation that the significant co-investment required from national, regional and local stakeholders, both public and private, is accessible.”
CCHL acting chief executive Paul Silk said all CCHL subsidiary companies were operating under tighter capital constraints as the group committed to lifting performance, improving dividend flows to council, and paying down debt.
Graphic showing expected aircraft noise from a proposed airport near Tarras, Central Otago.
“In recent weeks, CCHL has actively engaged with the board and management of CIAL on the Central Otago project. We have been advised by the CIAL board that they have taken the decision to take further time to reflect on the status of this project, noting that the challenge of accommodating the future resilience, economic growth and infrastructure needs of this fast-growing region has not changed.”
Silk said that while CIAL’s landholding is of strategic value, the project’s success was dependent on strong stakeholder alignment around the need for a new airport, including its role as an enabler of sustainable tourism as well as supporting population and economic growth.
He said it would also require confirmation that the significant co-investment required from national, regional and local stakeholders, both public and private, is accessible.
“We will continue to work alongside CIAL on all potential growth initiatives. We support CIAL’s decision to take time to reflect on the significant amount of information gathered to date, and in the context of new information emerging at a national and regional level.
“This includes the region’s strong desire to ensure transport infrastructure is aligned with a pivot toward sustainable tourism, together with the potential changes to infrastructure planning, funding and delivery frameworks signalled by the new government.
“As the majority shareholder, we appreciate there are a wide range of views on the Central Otago project. We support CIAL undertaking long-term strategic work on issues around regional tourism, economic growth and the future of sustainable aviation right across Te Waipounamu. This includes an expectation that they will continue to engage effectively with local communities.
“With substantial work now completed on the Central Otago site, we will focus our work with CIAL on other opportunities that exist to deliver the strong returns required to support the objectives of the wider CCHL Group, council and Christchurch ratepayers.”
