Covid 19 coronavirus: Farming irrigation main beneficiary of $50m in PGF loans

Water storage projects are the main recipients of millions of dollars in loans from the Provincial Growth Fund. Photo / Warren Buckland

The Government is loaning almost $50 million for regional projects including irrigation for a number of farming projects.

Minister of Regional Economic Development Shane Jones said this morning that the money was coming from the Provincial Growth Fund, a $1 billion-a-year fund that was in the Labour-NZ First coalition agreement.

He said it would help with the recovery from the economic fallout of the Covid-19 crisis.

"Finalising these Provincial Growth Fund loans and getting this much-needed capital into the regions over the next few months will aid longer-term economic stability and create sustainable jobs in the regions."

The projects receiving loans include water storage projects and include iwi and council ventures.

The nine initiatives receiving loans totalling $48.4m are:

• Raukokore River Water Ltd, water storage project – $10.6m

• Wai o Kaha Gold JV Ltd Partnership, kiwifruit orchard development – $5m

• Wairarapa Water Limited, community water storage – $7m

• Whakatāne District Council and Ngati Awa, Whakatāne riverfront revitalisation - $9.6m

• Te Rahui Lands Trust, Ngati Awa Group Holdings and Whakātane District Council – $4.7m

• Te Waka Pupuri Pūtea Trust, Awanui water storage project (Far North) – $3m

• Hineuru Iwi Trust - Hineuru cherry orchard development - $4.3m

• Hawke's Bay Regional Council, Tukituki water storage development phase - $2.5m

• Hawke's Bay Regional Council, Heretaunga Plains water storage development phase - $1.7m

Some of the loans will be paid in tranches and ongoing payments are subject to conditions that include reaching key milestones, Jones said.

The funding for the Raukokore River project is for the design and construction to support 200-300ha and potentially up to 900ha long-term of horticulture.

It is expected to be used by the Wai o Kaha Gold kiwifruit orchard.

The Wairarapa Water project is for freshwater supply to the region's primary sector activities and for drinking water.

The Whakatāne riverfront revitalisation project is for a riverfront promenade including amenities and a recreation area. Another Whakatāne council project is for a commercial boat harbour.

The Awanui water storage project is for Māori-owned land near Kaitāia to transition dairy farm land to more sustainable horticulture.

The Hineuru cherry orchard development is aimed to develop 14ha of unproductive iwi-owned land in Meeanee, Hawke's Bay.

• Covid19.govt.nz: The Government's official Covid-19 advisory website