Public Benefit Guideline

Our Public Benefit Guidelines explain how projects can meet a key requirement for Northern Australia Infrastructure Facility (NAIF) financing by delivering measurable benefits to Northern Australia that go beyond financial returns to the project proponent.

Under Mandatory Criterion 2 of the NAIF Investment Mandate, all proposals must demonstrate a clear public benefit to the economy and local communities. This includes local job creation, regional economic growth, Indigenous engagement, and improved infrastructure or liveability.

There are also aspects of an Indigenous Engagement Strategy that contribute to public benefit, particularly those focused on creating jobs for First Nations people and procuring goods and services from First Nations suppliers.

Guidance on Mandatory Criteria 5 of the NAIF Investment Mandate in relation to the Indigenous Engagement Strategy is provided in the Indigenous Engagement Strategy Guideline.

The NAIF Public Benefit Guideline helps project proponents understand what is required and how to provide the necessary evidence in a Public Benefit Assessment.

What Is Public Benefit?

In line with the Investment Mandate, public benefit refers to the net positive impact a project has on regional economic activity, community welfare, and development outcomes. This may include:

• Job creation, particularly local and Indigenous employment

• Growth in Gross Regional Product (GRP)

• Increased sovereign capability and economic resilience

• Local and Indigenous procurement

• Improved access to infrastructure and services

• Liveability improvements in remote or regional communities

The public benefit must be quantified and demonstrated to exceed the value of any financing concessions we may offer.

Preparing a Public Benefit Assessment

Proponents are required to commission and submit a Public Benefit Assessment conducted by an appropriately qualified, independent economist. This assessment forms a critical component of our due diligence process and must include:

Economic Impact Assessment

• Quantified short- and long-term impacts on GRP

• Full-Time Equivalent (FTE) employment generated (direct and indirect)

• Model methodology (e.g. Input-Output or CGE), assumptions, and interpretation

• Separation of direct, flow-on, and proponent returns

• Alignment with assumptions in the Base Case Financial Model

• Discounted present value of benefits using a 7% rate

Labour Market Profile

• Local workforce availability and unemployment rates

• Indigenous workforce analysis

• Forecasted FIFO vs. local employment ratios

Additional Welfare Impacts

• Net production benefits must not be included

• Liveability improvements and alleviation of economic or social disadvantages

• Treatment of GHG emissions, cultural heritage, and social equity

• Discounting of benefits and costs to project construction commencement

• Sensitivity analysis and interpretation of results

Download our Public Benefit Guidelines to access a template for required assumptions, provided in Appendix 1.

Quantitative Output Requirements

The Public Benefit Assessment must quantify the following indicators, with clear assumptions and sensitivity analysis:

Construction Phase:

• Direct and indirect FTE jobs

• GRP impact

• GHG emissions (abated or generated)

• Forecasts of FIFO vs. local labour deployment

Operational Phase:

• Direct and indirect FTE jobs

• GRP impact

• GHG emissions (abated or generated)

Other Quantified Metrics (where applicable):

• Royalties and Traditional Owner payments

• Value of regional or Indigenous procurement

• Social or cultural infrastructure considerations

• We may request additional metrics based on the project-specific context during due diligence.

Qualitative Outputs

Proponents must also address a series of mandatory qualitative considerations, including:

• Alignment with federal or jurisdictional policy priorities

• Strategies for increasing local and Indigenous employment and procurement

• Social, housing and cultural impact considerations

Other factors such as environmental impact, infrastructure uplift, and community liveability may also be required, depending on the project.

Ongoing Reporting Obligations

To support accountability and transparency, proponents or the managing contractor are required to submit an annual Public Benefit Outcome Project Report once the project begins drawing on NAIF finance.

Two-Year Post Completion Review

We will evaluate actual public benefit outcomes against the original forecasts. Additional data may be requested.

Public Disclosure

Following an Investment Decision, we will work with the proponent to publish information regarding the forecast Public Benefit of the project.

We may publish and report public benefit outcomes on an individual project basis and/or consolidated with other NAIF funded projects.

Learn More

Download the NAIF Public Benefit Guideline (PDF)

Definitions