Shareholders approve JV buyout

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A Special Meeting of BCIL shareholders was held 16 May 2017 to consider resolutions in relation to a proposal to take 100% control of the BCI Scheme.  The meeting was well attended and overwhelmingly supported the Board progressing the proposal to buy out the Electricity Ashburton Limited 50% share of the irrigation scheme.

Electricity Ashburton Limited was instrumental in the establishment and subsequent expansion of the scheme providing equity, governance expertise, and commercial discipline.  A recent review of the joint venture arrangements provided an opportunity for irrigators to consider if they would support the buyout.

BCIL will now prepare a Product Disclosure Statement to present to shareholders inviting investment of new capital to enable the buyout to transact.

Stage Two Progressing

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Following a successful capital raising in late 2014 the stage two expansion project is under way.  The project will deliver around 1.2 cumecs to properties in the area between Barrhill and Dromore.

Infrastructure includes a new intake from the Rakaia River near Barrhill, a pumped line to the Barrhill area, and a gravity delivery line to the Chertsey and Dromore areas.  A hydro generator will also be installed in the river infrastructure.  Around 64km of pipe will be installed with a target completion date in September 2015.

Work has commenced in the Rakaia riverbed and April will see the first pipes installed in the project.

Prospectus Registered

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Today BCI Limited registered a prospectus to allow applications for shares and new water connections over the entire BCI network.  The capital raised will be invested in the joint venture with EA Networks which will install infrastructure to accommodate the new connections.

The prospectus closes on 30 June 2015 but it should be noted that timing of installation of new connections will be prioritised based on timing of applications under the prospectus.  The joint venture has a large number of new connections to make including the stage two expansion project which is under way, and only 2 cumecs of water is available under the prospectus.

Prospectus documentation is attached to the BCI Limited page.

Water Agreement Updated

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A new version of the BCI water agreement has been published today.  The changes to the agreement are set out below;

  • Modified clause 2.1 and removed 2.2 to reflect that the scheme is operating and no longer requires preconditions around meeting minimum uptake and forming a joint venture.
  • Added clause 3.5 to provide that the BCI Board may surrender surplus shares from transacting members.  Designed to ensure Ordinary shares are available for further scheme expansion.
  • Added clause 8.3 to reinforce requirement for irrigators to provide Overseer simulations for monitoring nutrient loss from their properties.
  • Added new distribution lines to schedule one.
  • New version below.

Water Agreement (16 Sept 2014)

 

Stage Two Prospectus

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Today Barrhill Chertsey Irrigation Limited registered a capital raising prospectus to seek support for the stage two development.  The prospectus will close on 7 November 2014.

Subject to gaining sufficient support from the capital raising the BCI scheme intends to build a new river intake at Barrhill, a pumped delivery line at Barrhill, and a gravity delivery line to Chertsey.  The design of the gravity line incorporates a hydro generation component which will support significant overcapacity and also hedge against increasing energy prices for the scheme.

Farmers in the area are being encouraged to carefully consider if this proposal could add value to their businesses, providing pressurised water to the farm boundary, backed up by comprehensive asset management and environmental management systems.

Prospectus documentation is available on the BCI Ltd page.

New Office

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The BCI Scheme is now based in the Irrigo Centre Limited office at 18 Kermode Street in Ashburton.  The move allows the scheme to work alongside the other schemes in the district who share the office, and with the administration team at Irrigo.

The primary contact number for the BCI Scheme office is now 03 9288 321.

Stage Two Planning Progressing

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After a period of consultation with interested parties the BCI Scheme has lodged applications for a suite of consents to enable the construction of a new intake and settling pond at Barrhill, a seven kilometer pipeline in the Rakaia River bed, and the installation of a small hydro generation plant.  This primary infrastructure will deliver to two distribution lines, the Barrhill Line and the Chertsey Line.

The scheme will soon be working with land owners and potential irrigators to finalise the layout of the distribution network.  The aim is to begin construction in autumn 2014 if the consent process is complete and irrigator support sufficient.

Springburn Line Commissioned

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Infrastructure on the new Springburn line has been commissioned making water available to a new group of irrigators in the Springburn area.  The majority of the network was installed in the autumn but pond completion was held up due to wet conditions.

Land Use Consent Granted

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The BCI Scheme has been granted a land use consent by Environment Canterbury which allows water to be supplied to new irrigators provided that all properties supplied water by the scheme do not in aggregate exceed a nutrient cap.

The scheme has developed a nutrient management policy which allows it to assess information provided with an application for water to establish if the environmental performance of the intended use of the water meets the expectation of the scheme and will not lead to the scheme exceeding the consented nutrient cap.  If new users of the water meet the scheme’s expected environmental performance, and they comply with the scheme’s requirements around farm environment plans and audit processes, they have the ability to change land use without requiring an individual land use consent. The consent is granted for a term of five years and the position may change in the future.

The consent is available for viewing here – Land Use Consent CRC141388