Could a Federal loan help start Great Keppel Island Resort?
Posted on March 9th, 2016
Could the Northern Australia Infrastructure Facility (NAIF) assist Tower Holdings commence construction of the Great Keppel Island Resort?
“There might be a chance, only if a loan application for infrastructure like water, sewerage, energy and communications is supported by Local and State governments and which benefits all residents and businesses on the island” said Mary Carroll, chief executive of Capricorn Enterprise, the region’s peak tourism and economic development organisation.
“Also to be eligible, my understanding is that the NAIF finance will not exceed 50 per cent of the total debt, the financing component is $50 Million or more, and the loan is obviously repaid. This means that the total project would be $100 Million or more and it will have a much better chance if state government funds are also committed.” she said.
The Northern Australia Infrastructure Facility (NAIF) outlines the opportunity for $5 Billion in concessional loans ‘to encourage and complement private sector investment in economic infrastructure that otherwise would not be built’ . The loans, if successful, will be able to be drawn down from July 2016.
Ms Carroll said “we’ve been following this closely since the NAIF consultation paper was released by Minister Freidenberg MP in November last year, post the release of the Northern Australia white paper in June 2015. My understanding is that legislation will be presented to Federal Parliament next week and that there will be consultation going forward.”
“If Tower Holdings were to apply for this loan funding, it will absolutely need to be supported by local and state government and be a truly collaborative approach with no room for political point scoring between the state and federal governments” she said.
“The next step is for Tower Holdings to review the guidelines once they are released by the Federal government later this month and if they believe there is an opportunity, Capricorn Enterprise is willing to assist in whatever way we can to seek support from all levels of government.”
Capricorn Enterprise is part of the Northern Australia Alliance along with Advance Cairns, Townsville Enterprise, Northern Territory Chamber of Commerce, Broome Future Ltd and Karratha & Districts Chamber of Commerce & Industry.
For more information contact:
CEO Capricorn Enterprise
0417 669 286