Meridian Energy has confirmed it negotiated payments for a Maori iwi that changed its position on a proposed $300m hydro dam.
Environmental commissioners approved the 85-metre-high dam on the Mokihinui River, about 40km north of Westport, this week.
Te Runanga o Ngati Waewae had opposed the dam for cultural reasons, but later changed its stance to one of support.
A spokesperson for Meridian Energy, Alan Seay, says payments from the state-owned power company to Ngati Waewae comprise two parts.
One payment is for expert advice supplied to the company on cultural issues. The other will be paid when the dam is built to compensate for its impact on the river's mauri, or life force.
Mr Seay says Ngati Waewae has already been paid for the expert advice given during the project planning.
He says the payment to compensate for the dam's impact on the river's life force will only be made if the dam is built.
Ngati Waewae is not commenting. However, in a written submission in 2008 it told commissioners that the dam would affect the river's life force by blocking water, long-finned eels and mountain gravel from reaching the sea.
Mr Seay says Meridian will not disclose how much the payments are.
Last year, Radio New Zealand revealed that Meridian agreed to pay the Department of Conservation $175,000 if it did not object to a Central Otago wind farm.