WA nabs first NAIF loan for oil and gas

THE first loan from the Federal Government’s $ 5 billion Northern Australia Infrastructure Facility is destined for Western Australia but Adani’s Galilee Basin rail line in central Queensland could yet receive the biggest loan.

Deputy Prime Minister Barnaby Joyce yesterday confirmed the board of the concessional loan fund had made its first investment decision for the Onslow Marine Support Base project in Western Australia.

The project will support oil and gas exports.

A spokesman for Mr Joyce said the proposed loan to Onslow Marine Support Base Pty Ltd was for up to $ 16.8 million to develop a marine supply facility in Beadon Creek, Onslow.

The loan would complement a minimum of $ 24.5 million in private sector investment in the project.

The NAIF board’s investment decision starts Mr Joyce’s 21- day ministerial consideration period allowing him to consider the project against the grounds outlined in the Northern Australia Infrastructure Facility Act 2016.

This period will expire at midnight on October 20.

Mr Joyce welcomed the NAIF board’s first investment decision.

“Developing northern Australia is a hallmark policy of The Nationals and of the Coalition Government,” Mr Joyce said.

“This first decision augurs well for other applications before the NAIF including from North Queensland.

“We are determined to drive investment in northern Australia and this first decision to provide a loan from the NAIF signals very strongly that we are now entering the next phase of NAIF’s work following its establishment.”

It is understood the Government expects the NAIF board to make a decision on a potential $ 900 million loan to Adani’s Galilee Basin rail line in coming months or before Christmas.

Meanwhile, Townsvillebased Labor MP Cathy O’Toole said North Queenslanders had missed out with the facility set to fund its first project in Western Australia.

“This proves again ( the) Turnbull ( Government) is out of touch with North Queensland,” Ms O’Toole said.

“The NAIF was announced more than two years ago and we are still waiting for Malcolm Turnbull and Barnaby Joyce to allocate a single dollar from the $ 5 billion fund to build job generating infrastructure in Northern Australia.”

Ms O’Toole said the only money allocated so far was $ 500,000 on executive salaries and travel for board members.