Applicant
Contact Energy Limited
Case number(s)
200910122
Decision date
Type
Decision
DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision date15 July 2009
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in 10.4600 hectares of land at Piripiri Road, Ohaaki.
Consideration$882,563
ApplicantContact Energy Limited
Various (52.7218%)
Australia (23.5897%)
New Zealand (14.208%)
United States of America (6.3303%)
United Kingdom (except Isle of Man and the Channel Islands) (3.1502%)
VendorGregory Eugene Schumacher, Margaret Clare Schumacher and LW Nominees Limited as trustees of the Schumacher Family Trust
New Zealand (100.0%)
Background

Contact is required by its resource consents for the Ohaaki geothermal power station to effect remedial works, or undertake mitigation works, if subsidence occurs as a result of the operation of the Ohaaki geothermal power station. Geothermal subsidence caused by the Ohaaki geothermal power station appears to be causing the Ohaaki Marae, which is located along the Waikato River, to subside. It has been agreed that the Ohaaki Marae be relocated.

Contact has entered into a conditional sale and purchase agreement with the vendor for approximately 10 hectares of land to be used as part of a land swap agreement.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iv) – Added market competition/Productivity

Overseas Investment Regulations 2005
28(a) – Consequential Benefits
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(f) – Advance significant government policy or strategy
28(g) – Enhance the viability of other investments

More information

Anne Candland
Buddle Findlay (Wellington)
PO Box 2694
WELLINGTON 6140

Tony Dellow
Buddle Findlay (Wellington)
PO Box 2694
WELLINGTON 6140