The construction price of the proposed Ruataniwha Dam is financially viable, according to the Hawke's Bay Regional Council's investment company HBRIC, but it will not reveal the details.
Ruataniwha Dam Photo: SUPPLIED / Isthmus Group
Previous estimates put the cost of building the dam at $275 million with farmers expected to invest more than $300 million in the infrastructure required to use the water on their farms.
HBRIC chief executive Andrew Newman says it was not yet possible to say if the repricing would change how much farmers pay for the water, which currently sits at 26 cents per cubic metre.
Mr Newman said the construction company OHL Hawkins had provided an acceptable updated price, but he would not disclose what it was.
"That is because that price will continue to be refined as we continue to contract additional demand into the network. That's where we effectively take water through pipes, what pumping capacity we need. So it is premature to disclose the price.
"And the second issue is we will want our investors to ultimately agree that price, so that will remain confidential through that period."
Asked if the price farmers will pay for water will change based on the new construction price, Mr Newman said HBRIC would not be making any decisions "until such time as we have the capital structure finalised, we've got a preferred investor in the mix and all of those parties have reviewed the construction contract and we have refined the network to the level we are happy with."
Mr Newman said HBRIC was not yet in a position to announce who the institutional investors will be to replace Trustpower and Ngai Tahu, who pulled out last year.