JCU loan biggest and best

JAMES Cook University’s approval for a $ 96 million loan from the Northern Australia Infrastructure Facility is welcome news.

JCU has the honour of becoming the first Queensland organisation to gain a loan from the NAIF. It also represents the largest loan for a project from the NAIF to date.

The two projects announced so far, in Western Australia and the Northern Territory, have loans totalling $ 24 million.

The NAIF has copped criticism for its lack of progress in providing loans for infrastructure projects to stimulate Northern Australia.

By its own key performance indicators, the NAIF was required to approved three to five projects by the end of last month with total lending of at least $ 300 million.

The only other project so far publicly connected with the NAIF is the Genex Power pumped hydro storage and solar project at Kidston.

Genex has been given a “term sheet” from the NAIF for up to $ 516 million of concessional debt funding for Stage 2 of the Kidston project.

Conditions have to be met by Genex before the loan receives final approval from the NAIF.

The NAIF was set up by the Federal Government as an initiative of the White Paper on Developing Northern Australia with the aim of offering up $ 5 billion in concessional finance over five years for private sector investments in infrastructure.

However, despite concerns around the pace of NAIF’s approvals today’s official announcement of funding for JCU is great for Townsville and North Queensland.

The loan will allow JCU to progress with its construction of an impressive Technology Innovation Complex, which is part of its seven- year plan to revamp the Townsville campus.

It is hoped more equally exciting projects receive support from the NAIF in the coming months to help deliver more projects which will drive the North into the future.