Irrigation could arrive late for some shareholders of the North Otago Irrigation Company's expanded network this year.
North Otago Irrigation Company chairman Leigh Hamilton confirmed this week the company had informed shareholders this month there was "an increased likelihood of certain portions of the scheme being late'' after expected milestones had not been reached in the $57million expansion programme.
Mr Hamilton could not confirm there would be a delay in the water being turned on for some farmers, nor could he say why there could be a delay in the works programme or whether anyone was at fault for the potential delay.
"We are telling our shareholders to err on the side of caution,'' he said.
A June newsletter to company shareholders reads: "It is clear to us that there is an increased likelihood that a major portion of the expansion delivery of water may be late, i.e. later than 31 October, 2016. Various parts of the expansion will be completed by spring, which may make it possible for a staggered commissioning of some lines.''
Mr Hamilton said yesterday the company could not yet provide shareholders with an updated schedule for the works' completion.
"We don't have a confirmed timetable, yet. We're working very hard to get more certainty around this.
"And we're trying to communicate with our shareholders as we go, as we get more certain information.''
He said it was hard for some shareholders "to come to terms with'' it.
"Everyone's paying and everyone would like to get it at the same time,'' Mr Hamilton said.
"But there will be some staging options probably. That doesn't say that that will be the case, but they are aware of these things.''
The 114km expansion of the irrigation scheme down the Kakanui Valley began last spring.
The winter works programme involved installing a new outlet structure at the head pond near Ngapara.
Seven crews were working this winter laying pipe and the majority of river and highway crossings were complete.
There were penalties in place for the contractor for failing to hit target dates, Mr Hamilton said.
The expansion will cover 10,000ha, bringing nearly 25,000ha of farmland into the irrigation network and adding 100 irrigated farms to the shareholder-owned company.
Farmers themselves have spent about $20million on the scheme's expansion, and the Waitaki District Council repackaged a $10million loan, originally to be repaid this year, into a $17million term loan to the company, to be paid off in 2022, to assist the expansion.
