Earlier this week, Primary Industries Minister Nathan Guy announced that Crown Irrigation Investments Ltd had been set up to act as a ''bridging investor'' to help ''kick-start'' regional water infrastructure projects.
However, Waitaki Irrigators Collective Ltd (WIC) policy manager Elizabeth Soal said the new company would also have scope for investment in ''traditional'' community-level co-operative schemes.
Ms Soal said at least four projects in the district had already received funding through the Government's Irrigation Acceleration Fund for first-tier level funding, and although Crown Investment Company funding was primarily established to support regional-scale storage and infrastructure projects, projects in Waitaki could still benefit.
''WIC considers that the continued improvement of existing infrastructure is also crucial in increasing the area under irrigation, whilst growing productivity and enhancing scheme sustainability over the medium to long terms. ''We will be discussing with officials how the Crown Investment funding will work and whether there is scope for investment in the Waitaki.''
WIC chairman Fraser McKenzie said the new company would reduce the uncertainty for fledgling projects.
''There can often be a financing gap when there is investment uncertainty during the initial years of an irrigation project. It is very important that funding is available to ensure that enough capacity can be built into a project, as future demand inevitably outstrips what can be delivered if a project is under-built.''
However, he said the Crown had clear expectations of what it wanted to see before it would invest in any development, and added that it was not a subsidy for farmers.
''The Crown will be a minority investor, and it will be seeking a return on its investment as well as a clear exit strategy for its capital.''
Primary Industries minister Nathan Guy said the drought last summer showed the need for better water storage was ''obvious''.
''The company will act as a bridging investor for regional water infrastructure projects, helping kick-start projects that would not otherwise get off the ground,'' Mr Guy said.
''The Government has set aside $80 million in Budget 2013 for this purpose.''
