Project Assessment Process

Guidance for your project

Project Assessment Process

There are four stages in the application process:

  1. Enquiry and Preliminary Assessment Stage
  2. Strategic Assessment Stage
  3. Due Diligence Stage
  4. Investment Decision and Execution Stage

Project proponents are encouraged to contact us to discuss any potential projects prior to commencing, or submitting, any formal information.

Unless you consent to release, any information you provide us will ordinarily be treated as confidential until an investment decision is made, when public disclosure is required. This includes the fact you have approached NAIF for potential support for a project.

NAIF Investment Decision Process

Enquiry and Preliminary Assessment Stage

  • Proponent’s initial engagement with NAIF. NAIF develops an understanding of the proponent’s proposed project.
  • Allows NAIF to form an initial high-level view on the suitability of the potential project for NAIF funding support.
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Strategic Assessment Stage

  • Proponent provides more detailed project and transaction information.
  • NAIF reviews the information and if there is the potential for the project to comply with the Investment Mandate, an initial assessment of the proposal is prepared for the NAIF Board’s consideration.
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Due Dilligence Stage

  • NAIF undertakes detailed project due diligence and analysis.
  • NAIF will work collaboratively with a proponent and any co-financiers to develop appropriate NAIF loan terms and conditions, noting that the level of concessions provided by NAIF is to be the minimum required for the project to proceed.
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Investment Decision and Execution Stage

  • Detailed assessment of the project proposal goes to the NAIF Board.
  • The NAIF Board decides whether to make a formal Investment Decision (being a decision to offer or not to offer financial assistance). An Investment Decision may be conditional.
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1. Enquiry and Preliminary Assessment Stage
  • Proponent’s initial engagement with NAIF. NAIF develops an understanding of the proponent’s proposed project.
  • Allows NAIF to form an initial high-level view on the suitability of the potential project for NAIF funding support.
  • NAIF and the proponent discuss the nature and terms of any potential NAIF funding support for the project.
  • NAIF explains the future information requirements to allow the proposal to progress through the assessment process including arrangements relating to confidentiality.
2. Strategic Assessment Stage
  • Proponent provides more detailed project and transaction information.
  • NAIF reviews the information and if there is the potential for the project to comply with the Investment Mandate, an initial assessment of the proposal is prepared for the NAIF Board’s consideration.
  • NAIF Board undertakes an initial screening of the proposal to consider whether the project has the potential to meet the Investment Mandate’s eligibility criteria and determines whether it wishes the NAIF Executive to further investigate the proposal.
  • Project proponent will be informed of the Board’s view at this stage of the process and NAIF will provide guidance to the proponent on the steps for advancing discussions further.
  • This step does not constitute an Investment Decision nor is it an offer of finance. It is a preliminary stage of the NAIF application process: it does not indicate whether the NAIF investment criteria will be met nor is it an endorsement of any specific terms or conditions.
  • If the Board wishes to continue NAIF’s assessment of the project, relevant government stakeholders (Commonwealth and State/Territory) will be informed and relevant project and transaction information shared.
  • The NAIF Board’s deliberations are confidential.
3. Due Dilligence Stage
  • NAIF undertakes detailed project due diligence and analysis.
  • NAIF will work collaboratively with a proponent and any co-financiers to develop appropriate NAIF loan terms and conditions, noting that the level of concessions provided by NAIF is to be the minimum required for the project to proceed.
  • The due diligence process will include project and credit risk analysis and environmental and social assessments.
  • NAIF must assess whether the proposed transaction satisfies all the requirements of the NAIF Act and Investment Mandate.
  • NAIF will also consult with, as appropriate and required, relevant Commonwealth, State and Territory government stakeholders.
  • Where an Investment Decision is greater than $100 million, NAIF will consult with Infrastructure Australia.
  • The information provided to NAIF during the due diligence will form the basis for the proponent to submit its formal Investment Proposal.
  • Submission of the Investment Proposal is considered a formal application for NAIF financial assistance.
4. Investment Decision and Execution Stage
  • Detailed assessment of the project proposal goes to the NAIF Board.
  • The NAIF Board decides whether to make a formal Investment Decision (being a decision to offer or not to offer financial assistance). An Investment Decision may be conditional.
  • If a positive Investment Decision is made, NAIF will work with a project proponent to finalise and document the financing arrangements.
  • When considering whether to make an Investment Decision, the Board must be satisfied that the proposal meets the requirements of the NAIF Act and the Investment Mandate.
  • NAIF will notify a proponent and relevant stakeholders of the outcome of the NAIF Board’s Investment Decision.
  • NAIF will not proceed with its assessment of a transaction or with making an Investment Decision if the relevant State or Territory Government provides written notification that financial assistance should not be provided to the project.
  • The responsible Commonwealth Minister will also consider the project and can reject a proposal if he or she determines that financial assistance should not be provided.
  • Within 30 business days of the NAIF Board making a final Investment Decision, NAIF will publish on the NAIF website relevant information about the transaction as required by the NAIF Investment Mandate.