Eligibility criteria for NAIF finance are outlined in the Investment Mandate.
There are five mandatory criteria for NAIF finance.
Mandatory Eligibility Criteria:
- The proposed Project involves construction or enhancement of Northern Australia economic infrastructure
- The proposed Project will be of public benefit
- The Project is located in, or will have a significant benefit for northern Australia
- The loan will be able to be repaid, or refinanced
- Indigenous engagement strategy
The Board must be satisfied that NAIF’s return on the facilities it advances will cover at least the Commonwealth’s cost of funding and NAIF’s administrative costs.
The Board will also have regard to the potential effect of the project on other infrastructure and of the NAIF’s financing on the Australian infrastructure financing market and on the potential of the NAIF investment to encourage private sector participation in financing the project.
Definition of Northern Australia:
For the purposes of the NAIF, northern Australia includes all of the Northern Territory, and those parts of Queensland and Western Australia above and directly below or intersecting the Tropic of Capricorn. It also includes the regional centres of Gladstone, the Gladstone Hinterland, Carnarvon and Exmouth, as well as the Local Government Areas of Meekatharra and Wiluna in Western Australia. Territorial seas up to twelve nautical miles offshore adjacent to these areas are also included in the definition.
Importantly projects financed by the NAIF do not need to be entirely within these boundaries if they produce significant benefits to Northern Australia. For example, a project that enhances north south connectivity may be eligible.
Map of northern Australia as defined in the Northern Australia Infrastructure Facility Act 2016