Statement: Kurow Duntroon Irrigation Scheme

Published on 23 June 2022

Statement from Alex Parmley, Chief Executive of Waitaki District Council:

Waitaki District Council is proud of its track record of investing in the development of irrigation in the district. The development of irrigation and resulting growth in farming has been the single biggest driver of economic growth in the district in the past three decades, supporting directly and indirectly businesses and additional jobs that otherwise would not be there.

As part of our investment approach to our economy, WDC made the decision in 2018 to lend up to $3 million, plus an allowance for accrued interest in the development and expansion of the Kurow Duntroon Irrigation Scheme which was undertaken by Kurow-Duntroon Irrigation Company (KDIC). A substantial amount of work and professional advice went into ensuring that all foreseeable risks were taken into account and measures put in place to minimise them.

Following a dispute with its contractor Monadelphous Engineering and an Adjudication Process which resulted in a significant amount being owed by KDIC, KDIC was placed into voluntary administration and receivership. WDC is amongst a number of creditor organisations owed money by KDIC but is the second secured creditor which means the amount owing to WDC is secured against the assets and income of KDIC. KDIC’s assets are valued at more than what WDC and the other secured creditor are owed.

WDC is supportive of the administrator's proposal and its rights as a secured creditor are protected under the administration.

ENDS