Project Aqua still 'live'?

By Chris Hutching

Friday 30th July 2004

Interest groups say reports of Project Aqua's demise are exaggerated but Energy Minister Pete Hodgson this week performed the burial rites.

Part of the confusion arose when the Green Party "unearthed" a Ministry of Economic Development report assessing the potential of New Zealand's waterways to produce hydro generation.

The Greens claimed that because the report, published on the ministry's website this week, made reference to Aqua, it must still be a "live" project. They backed this up by pointing out Meridian Energy hadn't yet withdrawn consent applications and still owned the "relevant" land.

Hodgson said the report was written in January, long before Meridian abandoned Aqua. "I would like to make it clear that there are absolutely no plans to revisit this decision."

Sceptics are not convinced. Staff at South Island regional and district councils this week called on Meridian to explain why it wasn't withdrawing its applications for a series of power stations along the lower Waitaki River.

Informed sources suggest Meridian may seek a modified version of Project Aqua or is simply awaiting a change of political fortunes to revive the project. Simultaneously it is applying pressure by announcing new 15% power rises because it says there is a shortage of power generation and the price hike reflects demand. Last year it raised prices 15% on the grounds that the money was needed to pay for Project Aqua.

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