Wel Energy to give to foundation
Wel Energy trustees will sign off on a $10m grant to the newly formed Momentum Foundation next month after agreeing to a change to the trust's deed.
Trustees this week voted to add a clause to the deed allowing the trust to provide funds to charitable or not-for-profit organisations on the basis the groups use the money as capital funds.
The adopted change came after the trust called for public feedback on proposed changes to its deed.
It received 21 submissions, with 75 per cent supporting the proposed changes.
Wel Energy Trust chair Mark Ingle said the Momentum Foundation would use the income generated from the $10m grant and would pay back the capital funds in 60 years' time.
Mr Ingle said the grant was also tagged to projects which would benefit Wel Networks customers.
The Momentum Foundation aims to build up a capital base of $300m over the next 30 years with revenue used to help fund large inter-generational projects in the Waikato.
The foundation, which was launced in April, is expected to kick off its fundraising campaign in October.
Mr Ingle said the $10m grant would give the foundation certainty as it began its work, and would not impact on any of Wel Trust's activities including consumer discounts or community grants.