A further slowing in growth
The Federal Government is committed to accelerating economic infrastructure investment in Northern Australia. Up to $5bn in concessional loans to accelerate that investment - are available.
Australia’s north is uniquely geographically positioned to take advantage of:
Northern Australia Infrastructure Facility
In 2016, the Northern Australia Infrastructure Facility (NAIF) became available for project proponents to support infrastructure developments in Northern Australia including through the provision of concessional loans.
Headquartered in Cairns, the NAIF has A$5 billion of funding available to deploy into projects over the next five years.
In order to accelerate the development of infrastructure projects and fill gaps where private sector debt may not be fully available, loans provided by the NAIF may be structured to provide concessional benefits to borrowers including:
To be eligible for NAIF funding, proponents must demonstrate that the project involves construction of infrastructure (either greenfield or material expansions), provides a basis for economic and population growth in Northern Australia and is preferably the infrastructure is capable of serving multiple users. In addition, NAIF must co-lend alongside commercial or other lenders with NAIF providing no more than 50% of the total infrastructure debt funding. As such the involvement of NAB in your NAIF application process is important as we can assist in optimising commercial outcomes from NAIF negotiations.
Infrastructure gaps in Northern Australia
Infrastructure Australia identified infrastructure gaps requiring investment in order to meet the Government’s population and economic growth projections. Gaps were identified across the transport (airport, port, rail, road), energy (electricity, gas pipeline), water, and telecommunications sectors. These sectors drive economic growth outside the projects themselves.
The Government will facilitate the development of Northern Australia by creating successful environments in which businesses can thrive. This will be achieved through:
NAB is well positioned to assist customers throughout their NAIF application process given our strong working engagement with the NAIF, robust understanding of deal structuring and appetite for funding infrastructure projects. Please reach out to your NAB relationship banker should you wish to discuss opportunities to fund your Northern Australia capital expenditures and take advantage of the opportunities available through the Northern Australia Infrastructure Facility.
Article adapted from Capital Financing 2016 Year in Review
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