NAIF Investment Decision Notifications

NAIF Investment Decision Notifications

Onslow Marine Support Base, Western Australia

On 29 September 2017 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to  the Onslow Marine Support Base in  Western Australia. It will provide supply and support services for onshore and offshore businesses such as logistics, fuel suppliers, waste management, and construction and maintenance companies in the Carnarvon Basin.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Onslow Marine Support Base Pty Ltd

Goods/services involved: Development of a marine supply facility including wharf and harbour expansion

Location: Beadon Creek Onslow, Western Australia

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $16.8m

All conditions precedents were met on 7 June 2018 with initial drawdown of funds being made 7 days later on 14 June 2018.

Humpty Doo Barramundi Pty Ltd, Northern Territory

On 3 May 2018 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to the Humpty Doo Barramundi Pty Ltd stage one expansion of its barramundi farm in the Northern Territory. The first stage of the expansion being financed by NAIF includes a solar farm, medium fish nursery and processing equipment.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Humpty Doo Barramundi Pty Ltd

Goods/services involved:  Development of a solar farm,  a medium fish nursery, processing equipment and adult fish feeding systems.

Location: Humpty Doo, Northern Territory

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $7.18m

Voyages Indigenous Tourism Australia Pty Ltd, Northern Territory

On 14 May 2018 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to Voyages Indigenous Tourism Australia Limited, for the purposes of funding the upgrading of the Connellan Airport and required contractor accommodation, in Yulara, Northern Territory.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Voyages Indigenous Tourism Australia Pty Ltd

Goods/services involved: Airport runway, taxiway and apron upgrade, runway lighting and provision of contractor accommodation

Location: Yulara, Northern Territory

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $27.5m

James Cook University, Queensland

On 15 June 2018 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to James Cook University for the purposes of funding of the Technology Innovation Complex, as part of a larger Enterprise Bundle which has a total project value of $174 million.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: James Cook University

Goods/services involved:  Building of a Technology Innovation Complex, a 10,000m2 centre for students, industry partners and researchers.

Location: James Cook University Townsville Campus, Townsville, Queensland

Type of Financing Mechanism: loan

Amount of Financing Mechanism:  up to $98.0m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Queensland Government’s consideration and agreement for the approved funds to be advanced.

Pippingarra Road Upgrade, Western Australia

On 2 August 2018 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to Pilbara Minerals Limited for the purposes of upgrading the Pippingarra Road, a public road located south of Port Hedland, Western Australia, which would be heavily used by Pilbara Minerals Limited, resource businesses and nearby pastoral stations whilst remaining available for public use.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Pilbara Minerals Limited

Goods/services involved:  Upgrading the public Pippingarra Road

Location: Pippingarra Road, running south from an intersection with the Great Northern Highway to the east of Port Hedland, Western Australia

Type of Financing Mechanism: loan

Amount of Financing Mechanism:  up to $19.5m

Sheffield Resources Limited Thunderbird Minerals Sands Project, Western Australia

On 28 August 2018 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to the Thunderbird Mineral Sands Project, a mineral sands operation in the west Kimberley region of Western Australia, which is being developed by Sheffield Resources Limited.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Sheffield Resources Limited

Goods/services involved:  Construction of infrastructure including LNG power station and reticulation, site accommodation village and processing facility and also upgrading of existing local road and port infrastructure all to support the Thunderbird Mineral Sands Project.

Location: West Kimberley, between Derby and Broome, Western Australia

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $95m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Western Australian Government’s consideration and agreement for the approved funds to be advanced.

Northern Territory Airports Pty Ltd, Northern Territory

On 7 January 2019 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to Northern Territory Airports Pty Ltd for the purposes of a range of investments at Darwin, Alice Springs and Tennant Creek Airports (‘Project’), as part of a $300m infrastructure expansion package, located in the Northern Territory.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Northern Territory Airports Pty Ltd

Goods/services involved: A range of investments as part of an infrastructure expansion package across airport sites in Darwin, Tennant Creek and Alice Springs including:

  • the construction of a freight and cold storage and an export hub at Darwin International Airport;
  • solar energy farms at Darwin, Tennant Creek and Alice Springs along with an off-site multi-user battery; and
  • upgrades to Alice Springs Airport including the resurfacing of the airport’s runway, taxiways and apron and installation of new runway lighting.

Location: Darwin, Alice Springs and Tennant Creek, Northern Territory.

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $150m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Northern Territory Government’s consideration and agreement for the approved funds to be advanced.

Queensland Airports Limited, Queensland

On 7 January 2019 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to the redevelopment of the Townsville Airport Passenger Terminal, known as Project Alive.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Queensland Airports Limited

Goods/services involved: Redevelopment and expansion of the Townsville Airport Passenger Terminal including substantial refurbishment of the terminal (such as doubling the capacity of the departure lounge, new boarding gates, expanded security areas and the installation of self-check in and bag-drop facilities), better road access and an upgrade to core infrastructure.

Location: Townsville, Queensland

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $50m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Queensland Government’s consideration and agreement for the approved funds to be advanced.

Kalium Lakes Limited, Western Australia

On 15 February 2019 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to the Beyondie Sulphate of Potash Project, a major potash mining operation located southeast of Newman, Western Australia that is being developed by Kalium Lakes Limited.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Kalium Lakes Limited

Goods/services involved: Development of the Beyondie Sulphate of Potash Project involving sulphate of potash (SOP), with initial production of 90ktpa SOP plus supporting infrastructure comprising a 78 kilometre gas pipeline, a gas-fired power station, access road, communication facilities, an airstrip and an accommodation village

Location: southeast of Newman, within the Shires of Wiluna and Meekatharra of Western Australia

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $74m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Western Australian Government’s consideration and agreement for the approved funds to be advanced.

Alinta Energy Pty Ltd, Western Australia

On 15 February 2019 the NAIF Board made an Investment Decision to offer a Financing Mechanism, to Alinta Energy Pty Ltd, in relation to the Chichester Solar Gas Hybrid Project, East Pilbara, WA. The project will enable Alinta Energy Pty Ltd to supply electricity to the Fortescue Metals Group Limited (Fortescue) Chichester Hub iron ore mines, allowing operations at the mining hub to be among the first globally to demonstrate up to 100% of its daytime power requirement by renewable energy.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Alinta Energy Pty Ltd

Goods/services involved: Infrastructure including: a 60MW solar PV powerstation; transmission infrastructure; switchyards; and substations to supply electricity

Location: East Pilbara

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $90m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Western Australian Government’s consideration and agreement for the approved funds to be advanced.

Genex Power Limited, Queensland

On 8 July 2019 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to the construction of a 250MW pumped storage hydro project. This is the first pumped hydro energy storage scheme globally to utilise an abandoned mine.  The project’s storage capability makes renewable energy dispatchable and reliable, which is a critical need in order to increase the market share of renewable generation. The additional source of peak generation capacity will lead to lower average wholesale power prices which would flow to end users through the competitive retail power market.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Genex Power Limited

Goods/services involved: Construction of a 250MW pumped storage hydro project

Location: Kidston, Queensland

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $610m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Queensland Government’s consideration and agreement for the approved funds to be advanced, the Queensland Government’s commitment to linking transmission infrastructure for the Project and EnergyAustralia’s final approval of its commitment to the project.

Australian Aboriginal Mining Corporation, Western Australia

On 22 August 2019 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to the First Iron Project, Australia’s first substantially Indigenous-owned and operated iron ore mine located north west of Newman, Western Australia that is being developed by Australian Aboriginal Mining Corporation.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Australian Aboriginal Mining Corporation Pty Ltd

Goods/services involved: Construction of a borefield, crushing plant and site accommodation and a 55km haul road to connect the Great Northern Highway to the Cloudbreak site.

Location: 80 kms north west of Newman, Western Australia

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $12.5m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Western Australian Government’s consideration and agreement for the approved funds to be advanced.

Signature Onfarm Pty Ltd, Queensland

On 30 August 2019 the NAIF Board made an Investment Decision to offer a Financing Mechanism in relation to the construction of an on‑farm, greenfield specialist service, beef processing facility with onsite accommodation for up to 70 employees and other ancillary amenities, located in Clermont, Queensland, being developed by Signature Onfarm Pty Ltd.

For the purpose of Section 17(2) of the Investment Mandate details of that decision are:

Name of project proponent: Signature Onfarm Pty Ltd

Goods/services involved: Construction of an on‑farm, greenfield specialist service, beef processing facility with onsite accommodation for up to 70 employees and other ancillary amenities including office, amenities, lairage, waste water treatment, dry store building, irrigation system and supporting water, energy, telecommunications, road and IT infrastructure.

Location: Clermont, Queensland

Type of Financing Mechanism: loan

Amount of Financing Mechanism: up to $25m

Financial assistance to the project is subject to a number of conditions including the finalisation of the Queensland Government’s consideration and agreement for the approved funds to be advanced.

Process for publication of NAIF Investment Decision Information

Under the Northern Australia Infrastructure Facility Investment Mandate Direction 2018 (the Investment Mandate) an:

  • Investment Decision means a decision by the NAIF Board to offer, or not to offer, a Financing Mechanism for a project.
  • Financing Mechanism means a loan or any grant of financial assistance as determined by the responsible Minister in accordance with section 11 of the Investment Mandate.

Section 17(2) of the Investment Mandate provides that within 30 business days of making an Investment Decision, NAIF must publish information regarding the transaction on its website, subject to commercial confidentiality including:

  • the name of the project proponent
  • the goods/services involved
  • the location
  • the type of Financing Mechanism
  • the amount of the Financing Mechanism

Responsible Minister’s Consideration Period

Under Section 11(2) of the Northern Australia Infrastructure Facility Act 2016 (the NAIF Act) if NAIF proposes to provide financial assistance, NAIF must give to the responsible Minister written notice of the proposal (proposal notice).

Section 11(3) of the NAIF Act provides that the Minister’s consideration period is:

(a)  unless paragraph (b) applies – the period that ends 21 days after the proposal notice is given; or

(b) if, within that period of 21 days, or that period as extended, the Minister requires by written notice given to the Facility an extension of that period – that extended period, which must end not later than 60 days after the proposal notice is given.

Section 11(4) provides that at any time during the Minister’s consideration period, the Minister may notify the Facility in writing (the rejection notice) that the financial assistance should not be provided.

Section 11(5) provides that the responsible Minister may give the rejection notice only if the Minister is satisfied that providing the financial assistance would:

  • be inconsistent with the objectives and policies of the Commonwealth Government;
  • have adverse implications for Australia’s national or domestic security; or
  • have an adverse impact on Australia’s international reputation or foreign relations.

Section 12 provides that if the Minister decides that financial assistance should not be provided:

  1. A rejection notice must be accompanied by the Minister’s written reasons for the notice.
  2. Within 20 sitting days after the rejection notice is given, the Minister must table the notice in each House of the Parliament.

(note: the rejection notice must also be included in the NAIF’s annual report)       

Relevant Jurisdiction Consultation

Under Section 13(4) of the Investment Mandate NAIF must not make an Investment Decision if at any time the relevant jurisdiction provides written notification that financial assistance should not be provided to the project.

Under Section 13(2) of the Investment Mandate the relevant jurisdiction is defined as:

(a) the State or Territory the infrastructure project is located in for single jurisdiction Investment Proposals; and

(b) for Investment Proposals that cross jurisdictions, it is all jurisdictions where the project takes place.