CIIL has now pulled out, Finance Minister Grant Robertson announcing late last week the Government was winding down its funding for large-scale irrigation projects.
Hunter Downs Water, which already holds resource consent to take the Waitaki River water, received a $1.37million government development grant last year. CIIL had agreed to provide $70million term debt funding, as long as 9500 shares were sold and a total of 7000 water shares (equal to 7000ha) were issued.
Mr Fraser said on Friday Hunter Downs Water was preparing a statement to be released early this week. One of three irrigation developments that would continue to receive CIIL funding was an upgrade and expansion planned by the Kurow-Duntroon Irrigation Company, which uses water from Lake Waitaki on land south of the river.
Its chairman, Geoff Keeling, said on Friday the scheme's directors, staff, and shareholders had already committed a good deal of time and effort to a robust and environmentally sustainable project.
"We need the scheme infrastructure to meet the efficiency standards expected by regulators and the community.
"Our scheme brings significant benefits to the local community through job creation and providing resilience to the local economy — beyond the farmers receiving the water from the scheme. This investment recognises that.
"The funding will be repaid, with interest, just as a private loan would be, so the taxpayer benefits from this investment, as well as the local community."
Existing irrigators would use water more efficiently and take less from river tributaries.
Construction was expected to start later this year.
Funding was also withdrawn to two other large schemes, Hurunui, in North Canterbury, and Flaxbourne in Marlborough.