Funding the Dam

Waimea Water
The partnership approach

To pay for, own and operate the Dam, Tasman District Council and Waimea Irrigators Ltd (WIL), which represents irrigators on the Plains, will form a partnership in the form of a Council-Controlled Organisation, or a CCO.

This partnering approach makes the cost of the dam more affordable for all the beneficiaries, while also providing an opportunity to secure external funding from other parties such as the Central Government.

Funding model
Update 28 November 2018

Tasman District Council has released the final Waimea Community Dam staff report for the Council meeting for 30 November 2018. In that report is an updated overall project construction cost and a breakdown of the partnership funding proposal that is more current than the information below. You can find that report at this link.

Update September 2018

The Council agreed to a revised funding proposal for the Dam on 6 September 2018 following news the month prior that the overall dam price increased by $26 million. The revised funding proposal includes covering $23 million of the price increase with

    • an extension of the interest-free loan term for the $10 million environmental loan from CIIL to the Council from 10 to 20 years,
    • WIL's agreement to meet its $11.5 million share of increased project costs (which has been confirmed),
    • WIL meeting 50% of the servicing costs of the Council's $11.5 million share of increased project costs (capped at $375,000 per year), and
    • the inclusion of hydro-electricity in the project on the basis that it is fully Council-led and managed and that it is fully self-funding, provided it does not impact on risk or the primary purpose of the Dam.

This new proposal has WIL contributing effectively 75% of the services costs of the extra project capital required, reducing the impact on ratepayers.

Breakdown of costs

The project increase was $26 million. The project team anticipates finding $3 million in cost savings or other funding, bringing the project cost down to $99 million. The breakdown of the $99 million project cost is below.

Are costs going to change further?

Of the total $102 million cost for the construction of the Dam, the project team is looking for a $3 million saving to bring the cost down to $99 million. With that figure, here is the breakdown of the certainty of costs in the budget.

Effect on rates for Tasman District ratepayers

The Council’s website has a good breakdown of how rates will change for everyone in the district. Visit their website for additional information.

Ongoing operating costs

Ongoing operating costs would be shared between WIL and the Council.