Transcript Background - The Sustainability Society

Governance, Funding, Design,
Socio-Economic Impacts
Water Enhancement Projects
Friday Forum #8
14 March 2008
Terry Heiler
INVESTMENT IN CONTEXT
• Investment Opportunity
• 400,000 ha on the books
• Annual contribution to GDP -- $2 billion
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• This is 1.6 percent of GDP
• NZ’s Comparative Advantage
DEFINING WATER
ENHANCEMENT PROJECTS
• needs a community of interest
• multi purpose but dominated by
irrigation
• large scale water infrastructure
• costs high -- private capital needed
• high social and environmental impacts
WHO IS INTERESTED AND
WHY ?
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10 large proposals on the go
Central to Wairarapa
400,000 ha
investigations to date $6 million
off farm costs $2,000 million
on farm costs $1,500 million
changing agricultural industry
WHY ARE THESE
INVESTMENTS DIFFERENT
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• High up-front capital requirements
• Long-term -- inter-generational in time
scale
• limited customer base
• high social and economic impact
• need access to private land
• large RMA and user coordination issues
DEVELOPMENT PATHWAYS
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Genesis and Initial Planning
Pre-feasibility and Feasibility
Resource consents
Marketing, Pre-sale and Funding
Final design and Implementation
Operation and Maintenance
BIG ISSUES FOR
PROMOTERS
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Resource Quantification
Funding the Early Stages
Governance Structures
Funding Models
Sources of Funding
Resource Consents
Land Access
MAF-SPONSORED STUDIES
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Corporate and Financial Structures
Equity and Funding Options
Role of Central Government
Role of Local Government
International Experiences
Socio-Economic Impacts
CONCLUDING REMARKS
• The strong interest in large-scale water
enhancement projects is a reality
• Development of proposals has identified
common problems
• The current policy environment may not
be promoter or investor-friendly
• Interventions are called for
“ (do we)..attempt to cast
reality into the mould of policy
or do we do the
opposite…..policy must match
reality…”
ANY QUESTIONS?