The proposed $200 million Hunter Downs irrigation scheme has received a $276,000 grant from the Government's newly expanded community irrigation fund.
The scheme is a joint venture between Meridian Energy Ltd and the South Canterbury Irrigation Trust to irrigate up to 40,000ha in the Waimate and southern Timaru districts by pumping up to 20.5 cumecs from the lower Waitaki River and distributing it by canals and pipes.
Meridian will match the Government's grant dollar for dollar to help move the scheme forward faster.
Trust chairman Don McFarlane was yesterday pleased with the grant, describing it as "another public recognition of the project's progress and its potential contribution to the local and regional economies".
"It's another step on the way," he said about a project that started in 2004. However, there was a lot of work ahead.
The grant would be used for geotechnical investigations, one of the "building blocks" that would lead to detailed design of the scheme, followed by applications for land-use consents from the Waimate District Council.
Meridian's water infrastructure project manager, Brian Elwood, said the grant, along with Meridian's contribution, meant the geotechnical investigation could be done sooner.
The geotechnical investigation would help refine and optimise engineering for the scheme, establishing the most effective and efficient means of building a stable head race canal with a lining to stop leaks and scouring.
The work, which could take one to two years, would have a considerable effect on the cost of the scheme, he said.
Hunter Downs was granted resource consent for the water by Environment Canterbury (ECan) in April, but that has been appealed to the Environment Court, with a hearing tentatively set down for early next year.
Agriculture Minister David Carter yesterday announced the grant to Hunter Downs, one of four South Island projects and one North Island project to get nearly $2 million to help fund technical design work for irrigation schemes.
Mr Carter said the effort and cost required to get a local water storage or irrigation scheme under way was considerable, and in many cases too big a burden for communities to carry.
By contributing to design costs, the Government was supporting the development of assets that would help unlock the economic growth potential of irrigated agriculture and horticulture.
Each successful applicant had demonstrated sound environmental standards and processes, Mr Carter said.
The other projects were: Lee Valley community water augmentation storage dam (Tasman district) $995,000; Mayfield Hinds irrigation scheme (Rangitata) $158,000; Ashburton Lyndhurst irrigation scheme (Rangitata) $286,000; and Maungaroa irrigation scheme (eastern Bay of Plenty) $181,000.
