898

NEW ZEALAND GAZETTE

No. 37

“Draft Waikato Agreement” means the agreement relating to the sale and purchase of assets which is expected to be entered into between ECNZ and Waikato SOE after these directions are given to ECNZ and which has been initialled for the purposes of identification by, or on behalf of, the shareholding Ministers and given to ECNZ together with these directions;

“Draft South Island Agreement” means the agreement relating to the sale and purchase of assets which is expected to be entered into between ECNZ and South Island SOE after these directions are given to ECNZ and which has been initialled for the purposes of identification by, or on behalf of, the shareholding Ministers and given to ECNZ together with these directions;

“Huntly SOE” means the State enterprise called Genesis Power Limited;

“South Island SOE” means the State enterprise called Hydro Energy Limited; and

“Waikato SOE” means the State enterprise called Waikato SOE Limited.

2.2 The shareholding Ministers hereby direct, under section 98 of the Electricity Industry Reform Act 1998, that—

(a) Huntly SOE: ECNZ transfer the assets and liabilities described in item 1 of Schedule 1 to Huntly SOE—

(i) on the terms and conditions described in items 2 to 10 of Schedule 1 (in each case with such amendments as may be approved by the shareholding Ministers); and

(ii) on such other terms and conditions as are set out in the draft Huntly Agreement (in each case with such amendments as may be approved by or on behalf of the Treasury solicitor);

(b) South Island SOE: ECNZ transfer the assets and liabilities described in item 1 of Schedule 2 to South Island SOE—

(i) on the terms and conditions described in items 2 to 10 of Schedule 2 (in each case with such amendments as may be approved by the shareholding Ministers); and

(ii) on such other terms and conditions as are set out in the draft South Island Agreement (in each case with such amendments as may be approved by or on behalf of the Treasury solicitor);

(c) Waikato SOE: ECNZ transfer the assets and liabilities described in item 1 of Schedule 3 to Waikato SOE—

(i) on the terms and conditions described in items 2 to 10 of Schedule 3 (in each case with such amendments as may be approved by the shareholding Ministers); and

(ii) on such other terms and conditions as are set out in the draft Waikato Agreement (in each case with such amendments as may be approved by or on behalf of the Treasury solicitor);

2.3 The shareholding Ministers hereby direct, under section 98 of the Electricity Industry Reform Act 1998, that—

(a) Huntly SOE: on the date of settlement of the transfer of assets and liabilities from ECNZ to Huntly SOE, ECNZ—

(i) provide to Huntly SOE establishment funding in accordance with the agreement referred to in item 7 (c) of Schedule 1; and

(ii) pay to the Crown as a dividend or other distribution an amount equal to the Estimated Consideration (as defined in the draft Huntly Agreement) less the amount provided by ECNZ to Huntly SOE in accordance with subparagraph (i);

(b) South Island SOE: on the date of settlement of the transfer of assets and liabilities from ECNZ to South Island SOE, ECNZ—

(i) provide to South Island SOE establishment funding in accordance with the agreement referred to in item 7 (c) of Schedule 2; and

(ii) pay to the Crown as a dividend or other distribution an amount equal to the Estimated Consideration (as defined in the draft South Island Agreement) less the amount provided by ECNZ to South Island SOE in accordance with subparagraph (i);

(c) Waikato SOE: on the date of settlement of the transfer of assets and liabilities from ECNZ to Waikato SOE, ECNZ—

(i) provide to Waikato SOE establishment funding in accordance with the agreement referred to in item 7 (c) of Schedule 3; and

(ii) pay to the Crown as a dividend or other distribution an amount equal to the Estimated Consideration (as defined in the draft Waikato Agreement) less the amount provided by ECNZ to Waikato SOE in accordance with subparagraph (i);

3. Revocation of direction as to content to statement of corporate intent—The shareholding Ministers hereby revoke, under section 13 of the State-Owned Enterprises Act 1986 and with effect on and from 1 April 1999, the direction—

(a) given to the board under that section following the memorandum of understanding of 8 June 1995; and

(b) which required the inclusion of various provisions in the sections entitled “Commercial objectives of the Corporation”, “Nature and scope of commercial activities”, and “Accounting policies” of the statement of corporate intent of ECNZ.

RIGHT HON. W. F. BIRCH, Treasurer and Minister of Finance.

HON. A. B. W. RYALL, Minister for State-Owned Enterprises.

Schedule 1

Assets and liabilities to be transferred to Huntly SOE and associated terms and conditions

Interpretation

In this Schedule 1, except where the context requires otherwise:

Expressions defined in the Draft Huntly Agreement have the same meanings in this Schedule 1;

References (by number) to clauses are to the clauses in the Draft Huntly Agreement.

1. Assets and liabilities to be transferred to Huntly SOE

The following assets and liabilities are to be transferred by ECNZ to Huntly SOE:

Assets

The assets as defined in the Draft Huntly Agreement including:

(a) these Power Stations:

Huntly Kinleith
Rangipo Kaitawa
Tokaanu Tuai
Te Awamutu Piripaua, and