| Decision | Consent granted Section 12(a) Overseas Investment Act 2005 |
|---|---|
| Decision date | 18 November 2008 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in 87.9000 hectares of land at land at Sharpe Road, Pukekawa, South Auckland. |
| Consideration | CONFIDENTIAL |
| Applicant | Contact Energy Limited Origin Energy Limited (Origin), a major Australian energy company, is the Applicant’s majority shareholder holding 51.4% of the Applicant’s voting shares. |
| Vendor | Donald George Cameron New Zealand (100.0%) |
| Background | Contact proposes to purchase the land (known as the Cameron Land) in order to progress the Hauauru ma raki wind farm project (Project). The Project was announced in October 2007 and has the potential to generate up to 540 MW of clean, renewable and climate-friendly electricity to power up to 200,000 average homes.On 27 August 2008 the Minister of Energy announced his intention to call in Contact's resource consent application for Hauauru ma raki, recognising the national significance of the Project. As stated above, Contact proposes to purchase the land in order to progress the Project. The wind farm itself is located on properties close to the West Coast of the North Island. This is an advantageous site because of its relative proximity to Auckland but also its remote location. However, the Project is very large and requires a 28-kilometre-long duplex 220kV circuit to transmit electricity from the wind far to the national grid. If possible Contact will negotiate purchase of easements across properties that lie along the transmission route. Only if absolutely necessary, Contact will rely on its powers under the Public Works Act to compulsorily acquire the property rights that it needs. However to avoid the need to use such powers, Contact is exploring alternatives with those owners who do not wish to grant an easement. The Cameron Land is one of the key properties along the route of Contact's electricity transmission line for the Project. The property provides scope to explore alternative routes in a section of the line that may pass through a number of smaller lifestyle farms, and therefore minimise the number of people who may be directly affected by the visual and landscape effects of the proposed transmission line. However, the effect of implementing such options would seriously impact on the visual and landscape effects on the Vendor's farm, making outright purchase of the farm by Contact a more practical solution.. Contact proposes to purchase the land, establish easement rights to protect its operations and optimise the alternative route selection. Contact then plans to sell the residual land when the Project is completed. The Vendor has agreed to sell his land subject to reserving the right to retain 16 of the 87.9 hectares (including his cottage) depending upon the final transmission route. If Contact acquires the Cameron Land, it will help to progress the Project. The Project is one of a number of renewable energy initiatives being pursued by Contact, and will increase Contact's renewable generation capacity. As mentioned, Contact requires the land in order to register an easement for the transmission line that will link the wind farm to the national grid. Contact's view is that purchasing the Cameron Land is the best solution for this land in relation to the Project. Contact could have sought to acquire an easement over the Cameron Land either by negotiation or compulsory acquisition. However, as described above, the effects of the transmission line on the Cameron Land are likely to be significant, making outright purchase the most practical solution. Contact also considers that it is preferable for the Project and the landowners concerned, if is able to negotiated land rights including buying (and subsequently reselling) land where necessary rather than relying on compulsory acquisition powers. 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 satisified by particular reference to the following factors: Overseas Investment Act 2005 Overseas Investment Regulations 2005 |
| More information | Jessica Heyes Buddle Findlay (Wellington) PO Box 2694 WELLINGTON 6140 |