CIF Project Summary: Lee Valley Community Water Augmentation Storage Dam

Grant No: 09/02

Last updated: 28 July 2009

Contact details

Name of Applicant Group: Tasman District Council on behalf of the Waimea Water Augmentation Committee (WWAC)
Contact person: Joseph Thomas
Address: Private Bag 4, Richmond 7050
Telephone: 03-5438 494
Email: joseph.thomas@tdc.govt.nz

Project details

Status: In progress
CIF funding: $115,000
Total project funding: $230,000
Proposed start date: 2009-07
Proposed finish date: 2011-06
Region: Tasman
Related website links: http://www.tasman.govt.nz/index.php?WaterforWaimeaBasin

Project description

The Waimea Water Augmentation Committee (WWAC) has progressed pre feasibility (04/05 06/07) and feasibility studies (07/09/10) into water storage options for the Waimea Basin. The pre feasibility evaluated the needs for water to meet acute shortfalls and future demand as well as options for storage. A catchment and area was identified as suitable for a water augmentation dam to be progressed to feasibility stage. The feasibility study has been underway and has confirmed a dam site in the Upper Lee catchment and the project is completing a range of environmental and economic assessments. This is due for completion by December 2009.

This Community Irrigation Fund supported project is to progress development of the detailed governance structure (i.e. based on the preferred governance structure identified in the pre-feasibility study), refine the financial model based on the detailed costing from the feasibility study and to use this information to develop a prospectus for farmer/water user investment. This prospectus is to be used for community consultation (i.e. including meetings, newsletters and survey) and to gain and gauge community support i.e. investment for progressing the project through the next stages, i.e. consenting, detailed design, construction and commissioning.

The issue/opportunity

The key issue is the critical shortage of water on the Waimea Plains with consequent low security of supply. The current technical "hold" of water allocation limits through the planning process with goodwill from all parties and with all parties agreeing to work to resolve the issue provides and opportunity to get a win - win scenario for all. The feasibility study has a confirmed and feasible dam site identified in the Upper Lee Catchment and the investigations shows a run of the river augmentation scheme is feasible. This scheme would provide opportunity to boost to the river flow and provide enhancement opportunities for the river ecology and recreational users as well as providing water to recharge the aquifers on the plains, increasing it security of supply, maintaining more environmental flows at the lower end of the Waimea River, reducing risk of seawater intrusion into the aquifers as well as future proofing water supply needs.

The context/background

The water augmentation storage dam proposed is in the Tasman District and is located in the Upper Lee Catchment. The scheme is to resolve the acute over-allocation of water on the Waimea Plains (exceeds 50%), provide sustainable environmental flows for instream and ecological values and to provide further water for allocation to irrigation and future community water supplies. Irrigator's use 85% of the allocated water on the Waimea Plains and have already suffered severe restriction on water use. A broad economic assessment in the pre-feasibility stage shows earnings from agriculture alone in the area to be about $32 million/year. Loss of agricultural production if a higher low flow is implemented for the lower Waimea River in a severe drought is estimated to be between $14 - $25 million/year or 45%-75% of average earnings.

The dam will be an in-river dam in the Upper Lee River with a design capacity of some 13 million cubic metres of water storage. Water distribution is via a run of the river scheme with water users abstracting water directly from the river or the adjacent connected aquifers on the Waimea Plains. Modelling of the river/aquifer interaction confirms this delivery scheme to be feasible. This method of delivery also saves significant cost in piping the water downstream. The current irrigated land is 3800 hectares with another 1500 hectares suitable for irrigation within the Waimea Plain and a further 550 hectares adjacent to the Plains. The Waimea Plains groundwater system which is mainly recharged from the river is the primary supply for the townships of Richmond and Brightwater and the rural community; in total some 20,000 people with a current demand of 420 hectares equivalent and a projected future demand (100 year) of a further 855 hectares equivalent. A water demand of 440 hectares equivalent is also projected for future regional water needs for the adjacent Nelson city area. Note: 1 hectares irrigated land equates to ~ demand of 50 m3/ha/day.

The project is important as the water storage dam will provide the means to overcoming water shortages on the Waimea Plains provide security of supply to irrigators and provide enhanced flows for environmental, iwi and community needs. A secure water supply is critical to the viability and economic prosperity of the area and region.

Methods

The WWAC would develop a prospectus with a proposed governance deed based on the preferred ownership structure that WWAC decided in the feasibility stage. The prospectus would also have the further refined financial model proposal for progressing the dam. This work is to be completed by March 2010. A request for proposal process to carry out the above work is to be completed with a contact awarded to carry the work out by end of October 2009.

An extensive consultation period on the prospectus for farmer/water user investment is to be undertaken between April - December 2010. This includes a survey for gauging support on the proposal.

Final reports including recommendation to the councils and community on the governance structure and funding are to be completed by March 2011.

Contact for Enquiries

Senior Project Adviser
Natural Resources Group
MAF Policy
PO Box 2526
WELLINGTON 6140
Telephone: (04) 894 0632
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