A bill to implement a series of reforms to the Northern Australia Infrastructure Facility (NAIF) has passed through Parliament. The reforms will give it capacity to support a broader scope of projects; provide smaller loans to projects that create jobs in partnership with other lenders; and provide up to 50 per cent equity investment in projects in specific circumstances.
Assistant Minister for Northern Australia, Michelle Landry, said the reforms will speed up the delivery of projects across the north.
“These changes will transform the NAIF to make it a more proactive investor in projects that will generate economic activity and job creation,” Assistant Minister Landry said.
“NAIF has supported projects across a wide range of industries from agriculture, aquaculture, energy and resources, and these changes mean even more industries throughout northern Australia can apply for loans, which means even more jobs.”
In April 2021, NAIF’s $610 million financing in Genex Power’s Kidston 250 megawatt Pumped Storage Hydro Project (K2-Hydro) reached contractual close. This was NAIF’s largest financing commitment to date. The project, which has also received a $47 million grant from ARENA, is expected to create 500 construction jobs and deliver affordable and reliable electricity for north Queensland.
Minister for Resources, Water and Northern Australia, Keith Pitt, said the Bill means the NAIF will now be extended for a further five years to 2026 and will give it a broader scope of projects to support.
“The reforms followed a statutory review of the NAIF and wide consultation with stakeholders throughout northern Australia, and the Coalition Government has listened,” Minister Pitt said.
“We’ve said we want to make the NAIF more nimble and flexible and we are delivering for the people of northern Australia.”
“The NAIF has already committed $2.9 billion to projects across the north that will support around 9,000 jobs. Our changes will increase its ability to back even more projects,” he said.
