An iwi-owned company in Northland says Chinese investors has stepped in to finance a broadband project when New Zealand investors were not forthcoming.
Under the deal, Shanghai Communications will invest about $4 million to allow Tai Tokerau Networks, which is owned by Te Rarawa, Whaingaroa, and Ngati Whatua, to set up a fibre-optic link from Auckland to Kaitaia.
The iwi company will retain ownership of the network.
Te Rarawa chairman Haami Piripi says Tai Tokerau Networks sought New Zealand backers over a two-year period but were knocked back by the Government and the banks.
He says New Zealand investors either scoffed at the idea of iwi as telcos - or wanted a stake in the network.
Mr Piripi says, in comparison, the Chinese company has been a pleasure to work with, doesn't want to own the company, and sees its investment as a door-opener for other joint ventures with Maori.
The broadband cable will run up Northland's east coast and down the west, covering a distance of 165kms and taking high-speed broadband to many isolated communities on the way.
Work is set to start on the network early in September.
Shanghai Communications has experience in broadband rollouts in China.
