NAIF loans: Alliance Airlines granted up to $30 million loan for its $60 million maintenance hangar

A $60 million Rockhampton development is the third project in the Central Queensland region to receive Northern Australia Infrastructure Facility funding this year. Full details here.

After years of criticism, funds are finally starting to flow from the controversial Northern Australian Infrastructure Facility, and Central Queensland has secured four major slices of the funding pie.

The latest project to benefit from the NAIF is Alliance Airlines’ maintenance hangar at Rockhampton Airport, with an up to $30 million loan approved for the development, which is set to support 100 jobs during construction and 125 more once operational.

It is the fourth NAIF loan approved for the Central Queensland region since the inception of the program in 2016.

The Angus family was granted an up to $25 million NAIF loan in February 2021 for the construction of a specialist beef processing plant and on-site employee accommodation near Clermont.

The on-farm boutique state-of-the-art abattoir will employ up to 70 people and will be able to process 50,000 head of cattle each year, giving Bowen Basin graziers new routes for beef sales, slaughter and new markets.

The 6000 sqm CQ Signature Onfarm abattoir, worth $37 million in total, will open in coming weeks with this publication given an exclusive behind the scenes look at the operation in recent days.

MINING PROJECT: The $1 billion coking coal mine at Olive Downs located southeast of Moranbah in the Bowen Basin.

Bowen Basin coal mine Olive Downs South was allocated a $175 million NAIF loan in July, for the first phase of construction at the mine including rail and transmission lines, water pipelines, access roads and a coal handling preparation plant.

The project, 40km south-east of Moranbah, is set to create up to 700 jobs during construction and more than 1,000 new jobs once at peak production.

CQUniversity Australia has also benefited from a NAIF loan, with $76 million granted in November 2020 for building works at CQUni sites in Townsville, Mackay, Rockhampton, Emerald, Cairns, Gladstone, Charters Towers, Broome and Karratha.

There will be a focus on digital works at the university’s Rockhampton head campus.

Heritage Minerals previously said it hoped to secure a NAIF loan for the revival of the historic gold mine at Mount Morgan, which will include a new tailings reprocessing plant with 150 jobs once operational.

No funding has been announced for the project to date.

Surf Lakes, located between Rockhampton and Yeppoon lodged plans earlier this year for a major $187 million development to include a boutique hotel, playgrounds, solar farm, tourist park, cafes, inflatable water park and a solar farm over two stages to be completed by 2031.

There was hopes the project could get NAIF support, however Surf Lakes said this week the project did not qualify and the company had not been able to progress down the NAIF path.

NAIF is a $5 billion development financer that provides loans to infrastructure projects in the Northern Territory, Queensland and Western Australian.

The aim of NAIF loans are to generate growth in Northern Australia through projects that will benefit the community, boost the economy, support population growth and include Indigenous involvement.

Speaking about the project in Rockhampton, Minister for Agriculture and Northern Australia David Littleproud shared his full support for the Alliance Airlines development.

“We are going to create a pathway for young people to get into aviation in Rockhampton,” he said.

“The exciting thing for Rockhampton is we are diversifying their economic base.”

NAIF loans are funded from Australian taxpayer dollars and the details of the interest and how long the loans are in place for are not able to be revealed as they are “commercial in confidence”.

“They (Alliance Airlines) have decided to invest in Rockhampton; we have given them some support from the Australian taxpayer but we will get a return on investment, not only in terms of tax but in jobs and growing Australia,” Mr Littleproud said.

“Alliance Airlines has made that investment in Rockhampton, underpinned by the investment we made with the $25 million in the infrastructure grant and now up to $30 million NAIF loan.”

Capricornia MP Michelle Landry announced in May a Federal Government grant of $25 million towards the project and was happy to see more funding secured.

“This is a fantastic project, 100 jobs coming from overseas … this is fantastic for Rockhampton Airport, when I travel around the state this is one of the best regional airports in the country,” she said.

A staunch and tireless advocate for the Rockhampton Airport, Rockhampton region councillor Neil Fisher made an appearance from his sick leave to take part in the announcement.

“Our journey with Rockhampton Airport has been something we have held for over the last 10 years,” he said.

“We have worked very closely with our government partners and private industries.

“This funding will give Rockhampton an entire new industry.

“It is not just something that is five years, 10 years, it will actually create a culture, an industry and a whole new opportunity for young people to work in the aviation industry in the long term.”

Alliance Airlines managing director Scott McMillan said the commitment of the NAIF loan was the last piece of the puzzle for the huge project.

The state government has also committed funding, however the amount has not been revealed.

“Thank you to all of the parties that have helped get to where we have today, this is the final brick in the wall,” Mr McMillan said.

“We have been able to work with NAIF in a very proactive manner in the last five months.

“We couldn’t have done it without NAIF and the support of the three levels of government.”

The development will allow Alliance Airlines to transfer its aircraft maintenance from overseas to Rockhampton.

The Beef Capital was chosen because of its location off the coast and out of a saline environment, position to apply for a NAIF loan and the fact that the airport is owned by a council.

“I get to go to most regional airports in Australia and there is none better than this, it’s an outstanding facility,” Mr McMillan said.

The three-bay hangar will be 130 metres wide, 16 metres tall and 65 metres deep. Construction is set to start in October and be completed in October 2022.

A recruitment drive for the hangar will begin next month with a focus on schools for the apprentices and will go across Central Queensland and out west as far as Longreach.