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DEVELOPMENT OF WATEE-POWEE. Satisfactory progress has been made with the Lake Coleridge power-works. The works now under construction provide for headworks and buildings for supplying 10,000 horse-power, whilst the plant on order is capable of supplying 4,000 horse-power after allowing for one spare unit. Transmission lines will be erected in duplicate between Lake Coleridge and Christchurch, where a substation will be built containing the necessary transforming plant, also in duplicate. In connection with this substation a standby plant consisting of oil-enginesjdriving three-phase generators will be installed so as to maintain the supply to Christchurch and district in the event of failure of the transmission line. From the substation, which is situated in Addington, power will be supplied to Christchurch and to the surrounding district for a radius of twenty miles or thereabouts. In connection with these works a total of forty-two contracts have been entered into, the contract sums amounting to £167,686, in addition to which the Department is carrying out, by direct labour or on the co-operative principle, inlet works at the lake entrance of the tunnel and outlet works at the connection between the tunnel and the pipe-lines, foundations to pipe-lines, excavations for power-house foundations and for tail-race, maintenance of roads between Coalgate and Coleridge, and transportation and erection of plant. The total expenditure to date is £82,897, whilst the liability amounts to t1.21,236, and it is estimated that a sum of £48,484 is required to complete the works now under construction, making a gross total of £252,617. A contract has been entered into with the Christchurch City Council to supply them with power as from Ist May next at varying rates according to the load. At present there is a prospect that the works will be completed in time, the determining feature being the pipe-line, the contract for which is much behindhand. Negotiations for a supply of power to the Christchurch Tramway Board are proceeding, and similar negotiations will shortly be opened with other power users and local authorities within the area of supply from the substation. Last year's expenditure in connection with the development of water-power amounted to £35,009, and for the current year a vote of £200,000 is provided. Licenses for Electric Light and Power. Numerous licenses have been issued to local authorities and companies to enable them to distribute electricity for light and power purposes, also sundry water-power licenses. lEEIGATION. Steady progress was made during the year with the development of the scheme to irrigate the Ida Valley from reservoirs constructed in the Manorburn and Poolburn Valleys. A road has been made between the head of Ida Valley and the site of the proposed dam on the Manorburn, to permit of the transport of heavy materials for construction-work. Excavation for the concrete dam has been taken out, and preparations made to push the work on during the coming summer. The Bonanza Water-race has been enlarged for some distance to carry water for irrigation in a portion of the valley, and water was turned on to some of the land commanded by the race during last spring and summer. Diverting weirs in the Poolburn and Moa Creek have been laid out and a good start made with the excavations of Black's No. 3. race on the west side of the valley. Unfavourable weather-conditions and excessive snowfall in the winter interfered somewhat with the working of the teams during the greater portion of the year. The survey of the water-race from the Manuherikia River to the flat between Clyde and Alexandra having been completed, the work of constructing same will be undertaken at once. The expenditure out of last year's vote amounted to £14,689, but a much larger sum will be required this year, and a vote of £35,000 is accordingly provided on the estimates.

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