Chinese government bank may get $500 million mortgage over the Chinese-owned Darwin Port

A CHINESE government bank may get a $500 million mortgage over the Chinese-owned Darwin Port

A Chinese government bank may get a $500 million mortgage over the Chinese-owned Darwin Port. Picture: Darwin Port Corp

A CHINESE government bank may get a $500 million mortgage over the Chinese-owned Darwin Port.

However, the Northern Territory government said today it has the power to retain control of the port in the event of a loan default.

Landbridge, the Chinese operator of Darwin Port, is seeking to borrow funds from the Chinese government’s Export-Import Bank (Exim) and is using the port as leverage, Fairfax Media reports.

But the NT government, which owns a 20 per cent stake of the company, says it has contractual protections over its assets and can manage any risks.

“This also includes safeguards to ensure that in the event of a default on a loan secured against the port lease, control of the lease would revert to the NT government,” a spokesperson said.

In 2015 Landbridge won a 99-year lease of the port, sparking concerns from within Defence about the firm taking control of what could be considered a strategic asset.

The controversial $506 million deal resulted in stricter Foreign Investment Review Board rules.

Under the port lease agreement, a 20 per cent stake of the company must stay in Australian hands, which the NT government would own until Landbridge found a buyer.

But the NT Government is now in talks with Landbridge to retain its minority ownership at no cost to the taxpayer, meaning it would receive no dividends.

Landbridge wants the loan to fund port redevelopments, a new luxury hotel due to begin construction in Darwin later this year and a logistics park to host cold stores and warehouses.

In a statement, the company said it was approaching a range of Australian and Chinese banks as third party finance options.

Landbridge is also in negotiations to secure a loan through the commonwealth’s $5 billion North Australia Infrastructure Facility to support the port expansions worth hundreds of millions of dollars including the cruise ship terminal.

Originally published as Chinese government bank may get $500 million mortgage over the Chinese-owned Darwin Port