25 August 2008
MAF grants $0.39m for community irrigation and water storage
The Ministry of Agriculture and Forestry (MAF) today announced seven successful grant recipients under its first funding
round of the Community Irrigation Fund (CIF) which provides support to promoters of community irrigation and water
storage schemes.
Approximately $390,000 (incl. GST) funding up to 2011 / 2012 has been allocated for six projects in the South Island and
one project in the North Island. This includes $250,000 (incl. GST) for the 2008 / 2009 period.
The successful grant recipients include Barrhill Chertsey Stage One (Mid Canterbury), Strath Taieri Irrigation Scheme
(Central Otago), Dairy Creek Irrigation Scheme (Central Otago), Mount Ida Dam (Central Otago), Hurunui Community Water
Development Project (North Canterbury), Tarras Community Water Scheme (Central Otago), and Wairarapa Regional Irrigation
Scheme (Wairarapa).
``Water is a vital resource. With increasing demands and the likely impacts of climate change, helping rural communities
adapt to climate change is becoming increasingly important. Raising investor and community support for schemes can be an
expensive exercise and this fund aims to help promoters overcome the high costs of raising support for their schemes,’’
says MAF’s Director General, Murray Sherwin.
``I congratulate the recipients on their initiatives towards community irrigation and water storage which delivers
towards an important national priority. Land-based sectors and communities also play a key role in this priority and I
encourage them to consider the benefits of such schemes in their regions.
``The availability of these funds is in recognition of the importance of community irrigation and water storage projects
to rural communities. The funds are available to be put to good use and we encourage potential recipients to apply under
the next round. It is important applicants also understand the criteria to qualify and we will be raising further
awareness on the fund and criteria over the next few months,’’ Sherwin said.
The criteria used to assess the applications are based on potential impacts of the activities funded, potential impacts
of the completed scheme, the ability of the team to deliver on activities and the overall value for money.
The CIF was established in 2007 and is a contestable fund of $6.4 million (GST incl) ($5.7 GST excl) spread over an
eight year period. It is part of Government’s wider sustainability and climate change initiatives. The grant funds up to
half of the cash costs of appropriate activities.
Applications for the next funding will close in February 2009.
ENDS
For further information, visit:
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Fact Sheet
Community Irrigation Fund
1 Overview
Community Irrigation Fund (CIF) – Helping rural communities adapt to climate change by assisting promoters of community
water storage and irrigation schemes raise support.
• The CIF aims to build resilience in agricultural producers and rural communities and ensure their long-term economic
growth within sustainable environmental limits by reducing the risks they face from water shortages caused by climate
change.
• The CIF helps agricultural producers and rural communities adapt to climate change by assisting promoters of community
water storage and/or irrigation schemes overcome the high transaction costs of generating investor and/or community
support.
Funding
• A total of $5.7 million (excluding GST) ($6.4 million including GST) spread over eight years (2008/09 to 2015/16) is
available to assist with the cash costs of generating investor and/or community support.
• The Fund is contestable and financial support for up to 50 percent of valid costs is available to successful
applicants, for up to four years.
• There is no minimum or maximum level of grant for any one group. However, because the amount available for grants is
limited, the value of grants given to any group may be based on the area of land to be irrigated and/or the volume of
water to be stored.
• Grants can be used for activities such as: supporting a project manager or public affairs coordinator; promotional and
communications activities; facilitating discussions with the community on relevant issues; developing a prospectus for
potential investors; investigating a range of potential scheme funding arrangements; facilitating farmer investment; and
investigating possibilities for the multiple use of water by communities.
• Grants cannot be used for activities such as: capital expenditure or the physical construction of schemes;
pre-feasibility or feasibility studies; activities more appropriately funded by other Funds or organisations; assisting
with non-cash costs; participation in statutory processes or litigation; local or central government fees or charges;
legal and bank fees; long-term or on-going costs of an organisation/project beyond the grant period; and retrospective
costs.
Assessment
• The assessment process is based on the information provided by applicants. A panel consisting of MAF staff and external
experts assess applications and make recommendations for funding. The Deputy Director General (Policy) makes final
funding decisions on behalf of MAF. The Minister for Agriculture is not involved in this decision-making process.
• Applications are prioritised on the degree to which they: benefit a community-based organisation; demonstrate how the
proposed scheme will help the applicant group adapt to climate change; demonstrate how the proposed scheme will improve
the use of water in its locality; demonstrate how grants will contribute to raising investor and/or community support
for the proposed scheme; have a sound business case, including technical feasibility of the scheme; demonstrate
potential for economic, environmental, social, recreational and cultural benefits; demonstrate farmers’/producers’
commitment to invest in the scheme; propose measures to avoid, remedy or mitigate potential adverse environmental
effects; and already have, or have attempted to get, the endorsement of the local community, environmental groups, local
iwi and local government.
Other Funds
• The Sustainable Farming Fund (SFF) also provides grants on a contestable basis for different stages of the development
of water storage and irrigation schemes. The difference between CIF and SFF is that the CIF focuses on assisting scheme
proposals while the SFF supports projects that contribute to improving the performance of the land-based productive
sectors, for example, it provides grants for pre-feasibility and feasibility studies for water storage and irrigation
schemes.
• More information on SFF can be found on: http://www.maf.govt.nz/sff/
ENDS