DEVELOPING NORTHERN REGION

Government to open AS$5b infrastructure loan to more projects

AUSTRALIA will amend the guidelines for a A$5 billion (RM19.45 billion) fund that offers loans to build infrastructure in the country’s north so it can offer greater support to a broader range of projects, a government minister said yesterday.

The changes will aid a bid to develop Australia’s sparsely populated, yet resource-rich northern region, opening the fund to more projects after some, such as a proposed coal mine by Indian conglomerate Adani Enterprises, ran into political hurdles.

The Northern Australia Infrastructure Facility (NAIF) was introduced in 2016, but its rules had proved too restrictive, said Minister for Northern Australia Matt Canavan.

“There’s a strong pipeline of projects but it has been challenging to get them to financial close, so that’s why some of these rules are being changed,” said Canavan to Australian Broadcasting Corp Radio.

The government will remove a requirement that means NAIF can fund only 50 per cent of a project, while the types of infrastructure that can be backed will also be broadened.

“The changes now make it absolutely clear that we are able to consider smaller projects, where they meet our mandatory criteria,” said NAIF chief executive Laurie Walker.

Canavan said NAIF had 90 projects in the pipeline relating to energy generation and gas pipelines, transport, tourism, agriculture, manufacturing, water infrastructure and communications

“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.

The changes would not, however, revive Adani’s giant coal mine, which has faced strong opposition on environmental grounds, said Australia’s Treasurer Scott Morrison. “It’s off the table. This change in no way resuscitates that.”

The amendments come just over 12 months out from Australia’s next federal election where the ruling coalition government will seek to win favour with voters on its economic record.