The Waimea Community Dam project will continue, thanks to a revised funding proposal that reduces the cost and risk to ratepayers of proceeding.
The Tasman District Council has voted 9-5 to revoke an in-principle decision it made on August 28 not to continue with the dam.
Tasman Mayor Richard Kempthorne said the decision was overturned after new information was presented to councillors that showed the cost to ratepayers of a $23 million increase in the overall project price would be minimised. The information also showed the risk of the council's credit support for a loan to irrigators through the Council-Controlled Organisation had significantly reduced.
"We've still got a lot of work to do to reach financial close and the final decision point for the dam," Kempthorne said. "However, today's decision means we keep the ability to draw on $73 million in external funding for a project that will give us 100-year water security and protect the health of our precious water resource."
After the August 28 decision, the council's dam joint venture partners, Waimea Irrigators Limited (WIL) working with investors and central Government, proposed a revised funding model that limits the impact of the price increase on ratepayers.