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Questions and discussions traversed:
·
the cost of water to Council proposed in the
draft concession deed Term Sheets was at the Foundation Water User price
·
from memory, hierarchies or priorities, as per
the Draft Concession Deed, for provision of water to users should there be a
‘shortage’, are: first priority given to safety and
environmental flows including minimum flow into Makaroro and flushing flows,
HBRC flows and low flow protection for other existing water users’
rights; next priority covers contracted water users, with spot water only if there
is water available after every other priority has been met
·
with all water user agreements ‘back on
the table’ at the new water price of 23.5 cents/m3, contracted
uptake is expected to reach over 40M m3 but less than 45M m3
- with discussions to be had with farmers about how to bridge the gap between
the 2 amounts, by 18 April
·
the updated MacFarlane report projects that in
future (10-20-30 years) 30% of the landuse in CHB will be dairy
·
HBRIC Ltd has submitted an affidavit seeking
urgency for the Forest and Bird appeal resolution, which F&B has ‘declined’.
Crown Law, Acting on behalf of DoC, has also sought ‘urgency’
from the courts. As the land in question is not required for 3 years, if
resolution has not been achieved by Financial Close it is expected that
acquisition of the land will be a ‘condition subsequent’.
·
The draft Concession Deed is not final, and still
subject to further negotiations with the Institutional Investor, so not a
‘public’ document
·
The Foundation Water User Agreement has been
reissued to all parties in the contracting process, and will be provided to
councillors for information
·
In relation to resolution 8.4 from 25 June
2014, a “certificate” will be provided by the HBRIC Ltd legal
advisors, summarising the terms of all executed Water User Agreements,
identifying the water user parties who executed the Agreements; and explaining
the enforceability or otherwise of the Agreements
·
Sufficiency of the 4M m3 flushing flows
provided by the conditions of the RWSS resource consents and the timing of
those flow releases and the requirement for ‘change of
conditions’ process to be undertaken to change the timing or amounts to
be provided
·
Inflow of gravel modelling done during the
feasibility phase and gravel extraction scenarios
·
Benefits of Foundation Water User Agreement are:
it provides a defined price path (which will never be
‘beaten’), priority over ‘spot water’ provision as
well as rights of renewal of the Agreement
·
The Term Sheets outline the material terms and conditions of
the concession deed, and guides legal counsel in developing the final deed. The draft Concession Deed is negotiated between the Council and
the Limited Partnership (including the other Investors), and the previous
document was prior to the EPA process so has been amended to reflect
decisions made through that process and negotiations with a different
Institutional Investor
·
CHB District Council has yet to initiate a
special consultative process in relation to their proposal to sign a water
user agreement for their public water supply
·
The Independent Panel, as per the Board of
Inquiry decision, that will peer review geotechnical work has been
established but as yet has not had any detailed design and construction
geotechnical work to review.
·
The Financial model which forms the basis of
the Peer review, as per the Scope agreed 16 December 2015, has been provided
to Deloittes
·
HBRIC Ltd drew down $1M in March to carry out
geotechnical work to determine design requirements and costs for the
diversion tunnel
·
Previous $700k spent on geotechnical work
reflects work undertaken to inform the competitive D&C bidding process.
·
The map provided shows the expanded
distribution area providing for possible total 42,000 ha irrigable land
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