More than $1 million extra funding has been approved for water storage plans in Central Hawke's Bay.
Feasibility studies into two large dams in the Ruataniwha Basin were expected to cost $2 million but Hawke's Bay Regional councillors yesterday approved $1.035 million extra funding. Another $200,000 was expected to come from other sources.
Council chief executive Andrew Newman said that as the studies progressed and information became more precise the exact amount of funding required became clearer.
It was a "high risk project" because of the complex geological situation in the Ruataniwha basin.
"There is a lot of faulting, it is geologically quite young and a lot of seismic activity. Can we engineer it through those issues is one of the bigger risk aspects but it is still viable."
It was too early to determine the exact economic benefit and how much of the irrigation would be taken up, but Mr Newman was confident it would be good for the region.
"At this stage the study is suggesting the project is in a pretty sound position, comparable to South Island projects. There are pretty substantial benefits."
Environmental groups had expressed concerns about the risk of increased land intensification and a $750,000 study was being done by the council looking at risks and solutions.
A proposed water company would be incorporated into the council's investment company, so predicted losses as the dams were built and developed could be written off for tax purposes.
$1m boost for plan to build two CHB dams
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