The cost of water shares is still being established but initial indications are $25,000 per share in the Kaipara and $30,000 per share in the Mid North. There will be annual fixed costs mixed with variable costs based on seasonal use. This will be to cover the ongoing costs of maintaining the scheme.
Each share will provide for access to 3,000m³ of water per annum which will be supplied at a daily volume of 30m3. These volumes are considered sufficient for a variety of horticultural uses and are in general alignment with other local schemes. The schemes will be developed in response to demand and as consents are gained. Initial stages could be operational by Summer 2021/22 in Kaipara and summer 2022/23 in the Mid North with the full schemes largely operational two to three years after that.
Share purchase options are still currently being evaluated. It is likely that three main purchase options will be provided:
1. Full payment of share price
2. Share up option
A portion of the shares paid for upfront, and the remaining portion spread over the following four years.
3. Dry Shares
Dry shares are shares in the scheme that can be purchased by paying a portion of the full share price. While they are in the form of a dry share you are not able to take water. They would normally have a maturity date where the shareholder must either pay the remaining amount of the shares to convert them into normal wet shares or forgo them. They provide the shareholder certainty that a portion of the scheme is allocated to them that can be converted to wet share when water is required.