$6.5m loan for South Island irrigation scheme

Last updated 12:35 15/07/2014
Central Plains Water scheme

 

Related Links

Work to start on Central Plains Water scheme Farmers back Central Plains irrigation scheme

Relevant offers

Agribusiness

Stinky firm cops odour fine Scales Corp tips itself to beat forecast Demand for tall new grapevines booming 'Millions' lost to stock thieves Weather hits asparagus growers Making a go of goat's cheese Too 'early' to conclude an El Nino summer is coming On the pig's back for Rammstein Inflation 'killing rural towns' Beekeeper buzzing over award

Government agency Crown Irrigation Investments confirmed today it would lend Central Plains Water $6.5 million to develop stage one of the irrigation scheme.

Under an agreement with the Canterbury company, the Crown will provide $6.5m of subordinated debt for up to five years. The loan will assist the construction of excess capacity in the headrace to be built as part of stage one.

The transaction has been subject to due diligence by Crown Irrigation, which announced the draft terms of the loan to CPW in April. Stage one of the scheme will irrigate about 20,000 hectares.

The Crown's investment will help expand the scheme to 60,000ha.

The scheme has been touted as the largest irrigation construction project in the South Island.

The Rakaia to Waimakariri river canal scheme will eventually run 56 kilometres, but initially stage one will run from the Rakaia for about 17km.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content