"NAIF changes to boost investment in the North Jessica Johnston10 Dec 2020, 4 p.m.News Townsville-based Senator Susan McDonald and Northern Australia Minister Keith Pitt welcomed the changes to the NAIF. A BAN on using Northern Australia Infrastructure Facility funds on equity investments has been removed under reforms aimed at speeding up job and economic opportunities in the north.Up to $500 million of the NAIF's $5 billion kitty will be allowed to be spent on equity investments. Northern Australia Minister Keith Pitt said the removal of the ban would increase NAIF's capacity to actively support development in communities across the north as Australia deals with the impact of the COVID-19 pandemic. Mr Pitt said the changes were in line with the findings of the NAIF Statutory Review, which was released today, and come on top of reforms announced in the October budget."The changes will speed up the flow of funds to approved projects, give projects a greater range of debt-support options, and allow NAIF to make equity investments," Mr Pitt said."The reforms will streamline the approval process for NAIF to decide the most appropriate financing option for each project, including debt guarantees and the purchase of bonds, without the need for each decision to seek multiple approvals. "They also remove an existing ban on equity investments, allowing NAIF to take a non-controlling equity investment in a project. Mr Pitt said the measures would allow the NAIF to be a more proactive investor for the benefit of northern Australia. Changes announced in the budget include extending the NAIF investment period by five yars to June 30, 2025, streamline-ing the approval process, increasing the NAIF's 'risk appetite' and collaborating with lending institutions to support smaller projects under $10m. Townsville-based Senator Susan McDonald said the removal of the ban on equity investment would increase NAIF's ability to create local jobs and drive growth and opportunities across the North as Australia recovers from the COVID-19 pandemic. She highlighted corridors of growth which had been identified as a focal point for federal government policy designed to increase the appetite for major-project proponents to build in northern Australia. "One of these 'pit and produce-to-port' corridors is Townsville to Tennant Creek which identifies one of the key infrastructure links aimed at attracting and servicing NAIF-funded enterprises," she said. "This corridor needs good roads and rail, reliable digital connectivity and water supply, and certainty of workforce in order to attract investment, which is where NAIF will be poised to release funding."The changes will make sure NAIF will continue to support real jobs and real development and build confidence that North Queensland is a great place to live, work and do business. "NAIF has made decisions on investments worth $2.4 billion for projects in health, education, resources, energy and agriculture, forecast to support around 7,500 jobs. North Queensland projects already funded by NAIF include:Genex Pumped Hydro Power Plant, Kidston (530 jobs, $610m lent);Signature Onfarm Abattoir, Clermont (270 jobs, $24m lent);Metro Mining Floating Terminal, North of Weipa (60 jobs, $47.5m lent);NQ Cowboys High Performance Centre (271 jobs, $20m lent);James Cook University Student Accommodation, Townsville (569 jobs, $46m lent);Mater Health Car Park, Townsville (14 jobs, $19.8m lent);Townsville Airport redevelopment (257 jobs, $50m lent);JCU Technology Innovation Complex, Townsville (270 jobs, $96m lent);Central Queensland University Upgrades, Mackay, Gladstone, Cairns and Rockhampton (674 jobs, $76m).
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