Investors ‘lining up’ for northern deals, says Andrew Robb

Tens of billions of dollars worth of private money will flow into the Australian economy, two federal ministers predict.

Tens of billions of dollars will flow into the Australian economy as a result of a gathering of high-profile inter­national investors in Darwin to discuss northern development, two federal ministers predict.

Preliminary talks are said to be under way around funding as many as eight projects north of the Tropic of Capricorn, with four deals all but done on the fringes of the three-day Northern Australia Investment Forum.

But there are doubts about how long it will take for some of the most vaunted projects to go ahead, and Northern Territory Chief Minister Adam Giles yesterday again declined to back any potential new dams, undermining a federal push to develop more of 17 million hectares of unused north Australian arable land.

The federal government is also yet to explain how the most costly or uneconomic infrastructure, upon which many investment ­opportunities are said to depend, will be funded.

Trade and Investment Minister Andrew Robb said the level of ­interest at the forum from inter­national investors had been unprecedented.

“There’s no doubt that in the months and years ahead, this ­investment forum will lead to literally tens of billions of dollars (worth) of investment,” he said.

“Quite a number of investors, I think at least seven or eight, have started preliminary discussions on firm projects.’’

About 250 investors from 20 countries attended the forum. About 100 Australians were there to showcase potential projects up for grabs.

Resources, Energy and Northern Australia Minister Josh Frydenberg said he had received several positive inquiries about the $5 billion North Australia Infrastructure Facility, the “centrepiece” of the Coalition’s northern Australia white paper.

“While it’s not a grant, it’s a loan, and that imposes commercial disciplines on loan recipients,’’ Mr Frydenberg said.

He said storing more than the present 2 per cent of the roughly 60 per cent of Australia’s total rainfall that falls in the north would be key to developing more land to take advantage of the growing demand from Asia’s ­rising middle class.

Mr Giles has previously ruled out or declined to back at least three promising dam sites in the Darwin region.

Yesterday he said it was ­important to build community support, but would not commit to advocating for new dams.

The Australian understands the Territory has received interest from Chinese investors in establishing a pharmaceutical industry in the Top End, and from a variety of sources in bidding for a planned exclusive hotel in Darwin.

Japan is said to be keen on ­opportunities around Darwin following long-term leasing of Darwin Port to Chinese interests.

BUSINESS P21