The state-owned irrigation development funder agreed to fund Hunter Downs Water Ltd at a ''hugely important'' time as the company was readying for construction, the irrigation company's chairman Andrew Fraser said yesterday.
''We are taking a lot of faith in the Crown investing in us at this stage; they obviously see the benefits of the economics - and the environmental effects - Hunter Downs Water can bring to the area,'' Mr Fraser said.
Primary Industries Minister Nathan Guy announced the funding on Tuesday.
The scheme had been granted consents ''with rigorous environmental protections'' and would support a variety of land uses, including beef, arable, horticulture and dairy farming, he said in a press release.
Crown Irrigation chief executive Murray Gribben said the matched funding would help to establish a scheme with the capacity to irrigate 21,000ha ''and, in line with Crown Irrigation's mandate, is targeted at an optimal size to future-proof the project''.
''When completed, the project will provide a reliable water supply for farms and communities between Waimate and Timaru; providing much greater resilience for the greater South Canterbury region.''
Mr Fraser said a ''pro-disclosure statement'' would be sent out at the end of this week, to get shareholders to sign up in order to raise capital for the construction of the scheme.
The company hoped for between 150 to 200 water users for its scheme, which would cover a total command area of 68,000ha.
''This is the make or break stage,'' he said. ''People have got the opportunity now to sign up and buy shares in Hunter Downs Water.''
Construction could begin this winter, he said.
The total projected construction cost is $195million.
