A statutory review of the Northern Australia Infrastructure Facility has begun to align the fund with the Albanese government’s critical minerals ambitions and broader Future Made in Australia agenda.
Former Labor minister for defence science and personnel Warren Snowdon will lead the five-month review, announced by Resources minister Madeleine King on Monday.
Labor has previously criticised the financing facility for being slow to get investments out the door and as a tool for pork-barrelling under the Coalition government.
The government wants to use the fund to support its policy priorities and tipped in an extra $2 billion in June 2023. It also earmarked $500 million for critical minerals projects under the National Critical Minerals Strategy.
The $7 billion Northern Australia Infrastructure Facility (NAIF) supports economic and social infrastructure developments for Northern Australia, and now includes a targeted focus on critical minerals investment.
The 2024-25 federal Budget included a $1.9 million commitment for a statutory review, with a report due to be handed to Ms King and Minister for Finance Katy Gallagher in December 2024.
Mr Snowdon will be supported on the review by Australian National University vice president for First Nations Professor Peter Yu, and ESG consultant and prolific board director Dr Lisa Caffery.
Professor Yu has 40 years of experience in indigenous development and advocacy, while Dr Caffery has more than 20 years of experience in regional Queensland.
The review team will make recommendations to government on whether the legislated time limit for NAIF’s investment decisions should be extended beyond June 30, 2026, according to the terms of reference.
Other considerations of the review are whether its administrative, governance, and operating arrangements are fit for purpose. The effectiveness of NAIF’s concessional finance will also be assessed.
At the announcement of the National Critical Minerals Strategy refresh last year, the government earmarked half a billion dollars of NAIF loans for critical minerals projects and has already been co-investing alongside Export Finance Australia’s $4 billion Critical Minerals Loan Facility.
Ms King said the “review is an important opportunity to explore the role” of how the loan facility will support “government priorities in the national interest, such as the Critical Minerals Strategy and our Future Made in Australia agenda”.
NAIF chief executive Craig Doyle said during the last round of Senate Estimates in May that the NAIF had made 39 investment decisions worth $4.42 billion in total.
At the time, $2 billion worth of loan commitments had flowed to borrowers, of which around $600 million had been drawn down in the 2023-24 financial year.
Mr Doyle also told Senate estimates that for the pipeline of projects being considered at a pre-investment stage, there were “nine in due diligence [the finals step before investment decision] and 24 in active inquiry”.
At the start of that financial year, draw downs had been worth $1.41 billion. Amid the rush of last financial year, the NAIF also undertook a risk review of commitments that had yet to be drawn down.
Do you know more? Contact James Riley via Email.