$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

New Alliance Group technology means more meat faster 'Stripey' rain brings relief for some El Nino predicted to give farmers a rough ride over spring and summer NZ Post boosted by Kiwibank Landcorp's profit falls as low milk and lamb prices take their toll West Otago rallies to improve water quality Farmer collectives to right a 'stuff-up' Landcorp hints at change of direction over Taupo conversions Fonterra community fund helps two volunteer rural crews to douse flames Dairy downturn gives dispute mediators scope for bigger role in farmer and bank relationships

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