Conclusion
- This paper provides an overview of the main findings and a commentary on critical issues relating to the development of large-scale water enhancement schemes in New Zealand. With the withdrawal of government from the driving role for these developments in the 1980s, the private sector has now become the development instigator, but has struggled with the complexity of the information requirements that these types of projects generate, and the detail of the development, management and institutional options faced. This paper attempts to fill information gaps in the above key areas and so lead to more informed decision-making and debate on the main requirements for sustainable developments.
- The development process for large-scale water enhancement projects is complex and time consuming, involves a large number of stakeholders, and encompasses important considerations in resource management including economic, social and environmental outcomes. The benefits from well-formulated, sustainable developments can be considerable, but these will only be achieved with good understanding of the roles and functions of each of the parties involved, and with resource allocation decisions being based on the best available information relating to the status of the resource base, social and economic impacts, and environmental risks. In addition, the institutional structure of the development entity is critical to the long-term success of the project in accessing debt and equity capital, as is a thorough appreciation of risk at all stages of the development process.
- A key feature of the large-scale water enhancement projects under investigation, is that they are of a scale that is significant in terms of total resource use. While these studies have not specifically examined each of the current water enhancement projects in any detail, it is clear that the scale of the potential developments merit the interest of central government for several reasons. First, the water resource requirements are large enough to be of national significance; and second, the economic, social and environmental impacts, positive and negative, are clearly of a scale that requires central government attention. These projects inevitably require conservation29 storage and, as suitable storage sites are limited, if steps are not taken to secure these sites there will be difficulties for future development. It is clear that potential irrigation developments need to be considered within the framework of a national development strategy for the use of water resources; and that such a strategy has yet to be developed.
- This paper offers insights into the key issues that should be addressed by the major players in the process – the private sector (scheme proponents, financiers, etc.) together with local and central government – canvasses the options that are available, and addresses the particular considerations that affect the preferred alternative that may be appropriate. While every situation is different, there are key generic issues associated with the development of large-scale water enhancement projects that are similar for all projects, and it is hoped that this report provides the platform for an improved understanding and debate on these considerations.
29 Storage, preferably in sites located away from the main river channels, of high river flows for release during low flows in the summer period.
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