The Waimate District Council has set up a liaison working committee to work with Meridian Energy Ltd on its proposal to build a $900 million power scheme on the lower Waitaki River.
The north bank tunnel concept (NBTC) power scheme will be built in the Waimate district.
A 34km-long tunnel with a single power station producing between 1100 and 1400 gigawatt hours of electricity a year, it has recently been granted four water-only resource consents in an interim decision by Environment Canterbury (ECan).
Mr Coles said the project had major implications for his district and it was vital everything was done to optimise the economic benefits it offered.
The council regarded the project as offering highly significant positive impacts for the district, especially during the preliminary engineering investigative phase and its construction.
Meridian recently indicated a possible timetable that could see the scheme built and in operation by 2020.
The granting of water-only resource consents is the first phase, subject to any appeals to the Environment Court. Meridian will still need land-use consents from the Waimate council to build and operate the scheme.
Mr Coles said Waimate needed to be proactive to optimise the social and economic development potential and to minimise any negative environmental impacts.
The newly created council-Meridian liaison working party would study the social and logistical impacts of the project.
It hoped to lead the way in terms of local authority involvement in the project in a "responsible, visionary and co-operative manner", while being fully aware of both the positive and negative impacts.
Members are Mr Coles, councillors Peter Foley and Peter McIlraith, and council chief executive Tony Alden.
Cr Foley said the NBTC scheme would have the greatest social impact on the district during its construction phase, so the council needed to ensure these were positive.
"Environmentally, the impact is more longer-term and will also need careful management so the ongoing impact is an enhanced environment for all land users."
Cr McIlraith was mindful the project could cause anxiety among the farming community about water supplies as a result of the draw-off from the river for the tunnel.
The council was aware of those concerns and would be doing all it could to protect the farmers' interests and those of other water users, while at the same time trying to maximise the benefits, he said.
The council had decided the cost of its involvement with Meridian, including the liaison role, should not be levied on its ratepayers.
It intended to seek outside funding to assist with aspects of the project, including the preparation of social-impact reports.
At this stage, any operational costs associated with the committee will be met through existing resources.
