CPW loan repaid

ALL SQUARE: Central Plains Water has repaid the $6.26 million it borrowed from the district council to fund design work.

Central Plains Water has paid off its loan to the district council.

The loan of up to $8 million was approved in November last year, following public consultation through an amended Long-Term Plan process.

Subsequently, Central Plains Water progressively drew down $6.26 million, which was repaid in full last week along with interest of $188,000.

The loan was provided to assist with design work on Stage 2 of the irrigation scheme.

Mayor Sam Broughton said the prompt repayment of the loan confirmed that the district council’s backing for the scheme had been well-founded.

“Throughout our involvement with this project the council has been confident about supporting the scheme, on the strength of the potential returns to the district,” he said.

“The scheme will bring significant benefits to the wider Selwyn community through increased economic activity as well the creation of new jobs both on farms and within related industries. There are also significant environmental gains to be made, as the scheme replaces groundwater with surface water irrigation from alpine sources.”