Proponents of CopperString 2.0, the high-voltage transmission line to connect the North West Minerals Province to the National Electricity Market have welcomed reforms to extend the reach and life of the Northern Australia Infrastructure Facility.
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Last week the federal government approved the extension of the fund, which is the federal government's dedicated lender to infrastructure projects and businesses in northern Australia, for five years.
The NAIF will now go to 2026 while its scope has been broadened.
In 2020 the NAIF issued indicative financing terms for CopperString and now CuString CEO Joseph O'Brien said they were well advanced in its discussions, for what is expected to be NAIF's largest loan.
"The Government's review identified some reforms to make NAIF more effective. It is good news for Northern Australia and game-changing infrastructure projects such as CopperString, that the Parliament has passed these reforms," Mr O'Brien said.
"The extension of NAIF for a further five years to 2026 is welcomed as their long-term debt is critical for major infrastructure. We're motivated to finalise our NAIF arrangements and move into construction of CopperString, which is expected for completion in 2024."
Copperstring missed out on direct budget funding last week which disappointed Bob Katter and he said if it gets a NAIF loan the fund will need to be topped up as $2.8b of the $5b fund has been committed.
Minister for Resources, Water and Northern Australia, Keith Pitt said they wanted to make the NAIF more nimble and flexible.
"The NAIF has already committed $2.9 billion to projects across the north that will support around 9000 jobs. Our changes will increase its ability to back even more projects, " Mr Pitt said.
Among the changes, the NAIF will have the capacity to;
- Significantly broaden the scope of projects it can support
- Provide smaller loans to projects that create jobs in partnership with other lenders
- Provide up to 50 per cent equity investment in projects in specific circumstances
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