The Commonwealth Government is requesting feedback on the draft Investment Mandate for the Northern Australia Infrastructure Facility (NAIF).The Investment Mandate outlines the Government’s instructions to the Facility’s Board when making investment decisions and covers types of financial assistance that may be offered, characteristics of financial assistance (including concession and loan conditions), eligibility criteria for financial assistance and consultation requirements.
The eligibility criteria for financial assistance are of particular interest, and are broken into mandatory and non-mandatory. The mandatory criteria are:
-that the project be a construction or enhancement of economic infrastructure;
-that the project be of public benefit;
-that the project needs assistance project to proceed in a timely manner;
-that the project’s location will be in Northern Australia or will have significant benefit for that area;
-the financial assistance must not be the project’s main source of debt funding;
-the proponent produces comprehensive financial modelling showing that the debt can be repaid or refinanced; and
-the project must be able to show how the local Indigenous population of the region can participate in the project
Preference will then be given to projects who meet one or both of the non-mandatory criteria:
-the project seeks $50 million or more from NAIF, which can be multiple pieces of infrastructure; and
-there is an identified infrastructure need for the project
The deadline for submissions giving feedback on the scheme is the 29 March 2016. The NAIF is proposed to commence on 1 July 2016.
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