Feds to pour extra $2bn into Northern Australia Infrastructure Facility fund to benefit Northern Territory

A major job-creating finance facility has received a $2bn boost by the federal government after predictions it would lend all its money by the end of the year.

THE federal government has announced it will pour an extra $2bn into the Northern Australia Infrastructure Facility (NAIF).

Agriculture and Northern Australia Minister David Littleproud said funding boost would take the total amount committed to the NAIF to $7bn.

The extra funding was prompted by predictions the NAIF would fully commit its existing $5bn of financing over the next year.

Mr Littleproud said the extra funding would allow various projects, including in agriculture, ports, rail and manufacturing, to access debt and equity finance.

“The demand for NAIF funding continues to grow and it is likely to fully commit its current funding in the next year,” he said.

“An additional $2bn means these benefits stay in the north for generations to come.”

The NAIF, legislated in 2016, extends loans to suitable projects across the northern half of Australia, including all the Northern Territory.

Northern Australia Minister David Littleproud said the extra funds would help develop Northern Australia. Picture: NCA NewsWire / Gary Ramage

The NAIF has already committed $3.2bn in loans to projects, which the government projects will generate $23bn in economic activity and support 11,000 construction and ongoing jobs.

Northern Territory Senator Sam McMahon said $710m in loans had been facilitated through the NAIF for “critical infrastructure projects in the Territory”.

This included $300m for the Darwin Shiplift project, which was anticipated to create 277 jobs and $924m in public benefit.

Projects across the Territory are eligible for funding from the NAIF. Picture: File.

“This additional funding means even more opportunity for investment in our area and more benefits for our community,” Senator McMahon said.

“Major infrastructure projects have the potential to transform regions, creating jobs during construction and generating positive long-term benefits for the region.”

Compared to other loan facilities, the NAIF has a ‘higher tolerance’ for risks more commonly experienced in Northern Australia, such as distance, climate and remoteness.