CIF Project Summary: Tarras Community Water Scheme
Grant No: 08/06
Last updated: 30 October 2009
Final report
Latest project update
Website: http://web.tarrasnz.com/default.aspx
Contact details
Name of Applicant Group: Tarras Community Trust
Contact person: John Morrison
Address: 102 Thomson Gorge Rd, RD 3, Cromwell 9383
Telephone 1: 03 445 2033
Email: info@tarrasnz.com
Project details
Status: In progress
CIF funding: $16,300
Total project funding: $45,000
Proposed start date: 2008-07
Proposed finish date: 2009-06
Region: Otago
Project description
The proposed new water scheme intends to pump up to 5.5 m3/sec from the Clutha river and distribute this water on demand by underground pipe, to approximately 9000ha, as well as provide water for domestic, fire-fighting and light industrial purposes. The project is to establish a water company, promote the scheme to potential water users, and capture stakeholder support, all in parallel to the scheme's feasibility study being completed.
The issue/opportunity
The project plans to deliver 100 percent reliable, on-demand water to irrigators, domestic and light industrial users. Hence, existing takes can then come off the Lindis River, so that an environmental flow is left in the river before the 2021 deadline. Because of minimal system losses, cost and reliability, the water will be used more efficiently.
But the scheme's viability is totally dependent upon water user take-up and wider community support, so the CIF is important to partially fund the securing of these stakeholders.
The context/background
The Tarras farming area has an average rainfall of approximately 450mm a year and is located in Central Otago, and the present 100year old run-of-the-river Lindis irrigation scheme is very unreliable. Furthermore, the schemes' water rights which exist under historic mining privileges expire in 2021, beyond which there will most likely be a further reduction in water taken from the river. Domestic water is reliant on individual opportune bores. Without a new water source the district, including approx. 50 farms and 230 residents, could easily dry up.
Methods
Gather professional advice for the structure of the company that will implement the Tarras Community Water Scheme and report back to a meeting of the Community.
Develop a constitution and shareholders agreement and report back to a meeting of potential shareholders.
Proactively work with and regularly meet potential stakeholders and owners with the aim of seeking a part ownership commitment. Regular communication, including the establishment of a website, is important to achieve these outcomes.
Project update: September 2009
This project aims to form a new water company and seek commitment from potential stakeholders in the new Tarras water scheme.
Following on from the last progress report, much time and expense was spent resolving the new company's interim structure and its relationship with the charity, the Tarras Community Trust, which has been the entity steering this project up till now. Tarras Water Ltd has now been incorporated with the Trust being the sole shareholder with 500 shares. This will remain until water permits are granted and the scheme is deemed viable.
There is now optimism that, with the support of the wider community, a suitable funding model will be developed to make construction of the scheme viable.
Project update: June 2009
This project aims to form a new water company and seek commitment from potential stakeholders in the new Tarras water scheme.
Following on from the last progress report, much time and expense was spent resolving the new company's interim structure and its relationship with the charity, the Tarras Community Trust, which has been the entity steering this project up till now. Tarras Water Ltd has now been incorporated with the Trust being the sole shareholder with 500 shares. This will remain until water permits are granted and the scheme is deemed viable.
There is now optimism that, with the support of the wider community, a suitable funding model will be developed to make construction of the scheme viable.
Project update: February 2009
This project aims to form a new water company and seeking commitment from potential stakeholders in the new water scheme.
Much of the early reporting period was spent discussing with a public company the possibility of them building the scheme's infrastructure. As well, other parties have expressed interest in taking a stake in the new scheme. Discussions are continuing although no commitment is likely until the scheme is deemed economically viable and consents granted.
The Tarras Community Trust in the meantime, needed to start forming the new water company because the water permit to take water from the Clutha River had to be in the name of this new company.
As the charitable Trust is funding the permit application for the company, the Trust had to ensure this was appropriate within the scope of its trust deed. This has been resolved and the new company's name, Tarras Water Ltd has been registered and is about to be incorporated.
However, until the scheme is definitely viable, current advice is saying that the Trust should be the sole shareholder and the Trust Board largely constitutes the Board of Directors.
Contact for Enquiries
Senior Project Adviser
Natural Resources Group
MAF Policy
PO Box 2526
WELLINGTON 6140
Telephone: (04) 894 0632
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