Following the signing of a Master Facility Agreement (MFA) between the Federal and Western Australian governments, eligible WA infrastructure projects can now receive new Northern Australian Infrastructure Facility (NAIF) funding.
Minister for Resources and Northern Australia Matthew Canavan said the agreement sets out the legal and financial obligations when projects receive funds from the NAIF.
“The Federal Government established NAIF to help build infrastructure that will create jobs and grow the economy across Northern Australia,” said Mr. Canavan in a statement.
“The opportunities are vast and already there are 140 potential projects in the pipeline, with 10 in due diligence and execution, including three in Western Australia.
“Signing the MFA with WA was the final important step in the process that will allow funds to flow from the Northern Australia Infrastructure Facility to these nation-building projects.”
The signed agreement follows the announcement of the NAIF Board’s first investment decision, for the Onslow Marine Support Base in Western Australia.
“The Onslow project includes a loan of $16.8 million, with the project forecast to contribute $100 million to the economy,” stated Mr. Canavan.
“This was a significant announcement for NAIF, just over a year after its inception, especially considering infrastructure projects typically take up to three years or more to reach financial close.”
Western Australian Premier Mark McGowan said the MFA agreement will assist the ongoing development of the state’s north west.
“The state government is committed to diversifying the Western Australian economy and creating new jobs, and development in our regional areas will play a critical role in this task,” said Mr. McGowan.
“We’ve taken our time to negotiate an agreement with the [Federal Government] for the NAIF that does not expose Western Australia to unnecessary financial risk.
“I’m delighted to see a Western Australian project as the first proposal to receive conditional NAIF support, and the state government will be formally reviewing the Onslow proposal in coming weeks.”