REVAMP FOR NAIF FUNDING
NORTH Queensland companies will now have greater access to loans for infrastructure projects following a major overhaul of the Federal Government’s key regional development agency.
The Federal Government will today unveil a suite of changes to the Northern Australia Infrastructure Facility in a bid to increase the number of projects that would qualify for funding. NAIF was established to provide concessional loans for infrastructure in the North but in two years since its inception one project has been funded.
The changes include removal of the 50 per cent cap on loans so NAIF is able cover all of a project’s debt, expanding the definition of eligible infrastructure and establishing regional development hubs to support projects in the latter stages of financing.
Northern Australia Minister Matt Canavan said the amendments were based on the findings of an independent expert review of NAIF, undertaken by Tony Shepherd.
“( Mr Shepherd) found the important need to develop the North still exists, but there have been challenges to making it happen,” he said.
“The Government shares this view and we are committed to developing industry and job opportunities in Northern Australia.”
Senator Canavan said the changes were in response to a key finding that NAIF’s investment mandate was “too restrictive”.
“The Government’s amendments will increase its flexibility and improve its potential to support projects in partnership with the private sector and northern jurisdictions,” he said.
North Queensland- based LNP Senator Ian Macdonald said he was “delighted” by the decision to amend the lending mandate to make it easier for projects to get off the ground.
“No longer will it be necessary for the proponent to provide one half of the finance and in some circumstances the NAIF will be able to lend up to 100 per cent of the finance needed,” he said.
“There will no longer be a need to prove that other finance was not available and the non- binding cap of $ 50 million will be scrapped.”
Senator Macdonald said the changes would mean “real money” would flow to projects.
“I am confident that many of the projects currently under consideration by the Board of NAIF will quickly be given the tick of approval once these changes are made,” he said.