SCOTTSDALE Irrigation Scheme water sales will be launched tomorrow.
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Tasmanian Irrigation chief executive officer Chris Oldfield said that water would offered until November 26 and represented a once-in-a-lifetime opportunity to buy irrigation water that promised 95 per cent supply reliability.
The launch will be held at noon, at the Scottsdale RSL, and a light lunch will be served.
The $46 million Scottsdale scheme will only proceed if Tasmanian Irrigation secures $12 million in private investment capital from irrigators, through the purchase of water entitlements, to meet the requirements of its approved business case.
``Water sales will determine the scheme’s capacity, which is approximately 8600 megalitres — scheme’s are re-designed to satisfy demand,'' Mr Oldfield said.
``There may not be another opportunity to secure this water and if the water is not sold, capacity may not be built into the area.''
The Scottsdale scheme’s water will attract an up-front, buy-in cost of $1400 per megalitre, with the minimum purchase set at 10 megalitres.
``Purchasing water entitlements includes an irrigation right, a zone flow delivery right and a connection agreement,'' Mr Oldfield said.
``The water will be sold in two classes, initial and open.
``If the full volume of water is not sold during the [initial] landowner sales period, water entitlements may be offered to the open class, meaning the public outside of an irrigation district.
``The open-class offer must exist for [us] to recover the capital costs of a scheme.''
If farmers in the Scottsdale district achieved the required 75 per cent water sales threshold, the scheme would be in a strong position to secure the $34 million in state and federal government funding needed to see construction start, Mr Oldfield said.
Scottsdale Irrigation Scheme Project Manager Andy Corbould said if the scheme went ahead, long-term jobs would be created in the region and construction work would be available in the short term.