NOIC viability checks going well

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The North Otago Irrigation Company share uptake exceeded requirements and the viability checks, which are due to be completed at the end of the month, are progressing well.

The company’s share offer closed on December 19 with 4711 applications, meaning they will be going ahead with the $53.2 million expansion plan as part of stage two of their irrigation scheme, as long as at least 2859 applications are viable.

NOIC needed at least $12 million from new share sales, at $4200 a share, for a proposed loan from the Waitaki District Council of a maximum of $17 million to take effect.

NOIC chief executive Robyn Wells said the amount of applications submitted was well ahead of their goal.

“We were absolutely delighted.”

The company were initially going to close their share offer on December 12, but extended it a week to ensure noone was disadvantaged by processing delays.

Mrs Wells said the extension was well worth it because they managed to go from 4278 applicants on December 12 to 4711 on December 19.

“We’d really like to thank the people for their applications.”

The company now has until January 29 (25 working days from December 19) to look at the viability of each application and to work on a design that will accommodate as many applications as they can, she said.

Applications can still be made by contacting the NOIC office on 03 433 1201, however they will not be under the Scheme Expansion Prospectus.

The company expects to be in a position to start ordering pipe soon after the viability process.

Water is planned to be available for use by September 1, 2016, in an expanded command area that will reach from Five Forks down to north of Herbert.

By Ruby Harfield