Meridian Chief Executive Mark Binns said the decision was difficult and followed a full review of the hydro scheme and the risks and uncertainties the project faced prior to becoming a reality.
"The project had a strong business case and would have been beneficial to the West Coast, but it was challenging as the project footprint encroached on Department of Conservation Stewardship land,” he said. "Given the positive economics offered by the project and the benefits it would bring, Meridian progressed the project. However, our recent commercial review of the project determined it was not prudent to proceed further given the high costs and the risks of the process involved – which includes not only securing the resource consents but also land access under the Conservation Act. It was the difficulty associated with seeing a path through the land issue that was of most concern.”.
The Mokihinui hydro project received resource consent in April 2010, following extensive stakeholder engagement and public consultation. The decision was appealed to the Environment Court by the Department of Conservation, Forest & Bird, Whitewater NZ, and West Coast Environmental Network Trust. Meridian would also have been required to work through a separate Conservation Act process because the project would have had an effect on public conservation land.
“While the decision to withdraw from the Mokihinui Hydro Project is the right commercial decision for Meridian it is no doubt a very disappointing outcome for all those who supported the project, particularly on the West Coast," added Binns.
