Professory Khory McCormickOn behalf of the Northern Australia Infrastructure Facility (NAIF), I am pleased to present the NAIF Financial Year (FY)18-19 Annual Report.
During FY18-19, the first full FY under its revised Investment Mandate, NAIF delivered six Investment Decisions for an aggregate of $479 million in NAIF loans for projects of $1.4 billion of total capital value and which are forecast to generate public benefit of $1.1 billion. Investment Decisions were made to benefit each of our northern Australian jurisdictions and across diversified sectors, namely tourism and airports, resources, renewable energy and roads.
The Board has also made an Investment Decision for a loan of up to $610 million, for the Genex Power Kidston Stage 2 Project. Substantial work associated with that decision was completed in FY18-19, with the Investment Decision following shortly after on 8 July 2019. As a result, this Investment Decision will be formally included in the FY19-20 results but demonstrates the strong momentum underway.
NAIF’s Corporate Plan is for a further 7 to 12 Investment Decisions in FY19-20 with NAIF commitments of between $1 to $2 billion. In FY18-19 the Board commenced scoping the potential to develop iconic transformative projects. This will continue to be a priority in FY19-20.
In relation to the scheduled statutory review of NAIF’s legislative framework, NAIF is committed to make the case for it continuing to make investments beyond 30 June 2021.
The Board is keenly aware of its responsibilities as a steward of public resources, operating within the commercial market. In April 2019 the Australian National Audit Office (ANAO) released its performance audit on NAIF under Section 19 of the Auditor-General Act 1997. The report confirmed NAIF has an appropriate governance and integrity framework.
Six recommendations were made, which NAIF has accepted and either has already adopted or is working to adopt.
NAIF Board and CEO
The inaugural NAIF CEO Ms Laurie Walker will conclude her three year term on 31 October 2019. On behalf of the Board and the NAIF team, I acknowledge the role Ms Walker has played over NAIF’s first three formative years including recruiting a talented team to enable NAIF to carry out its mandate. We wish her well for the future.
We welcomed new Directors Ms Kate George (as of 29 March 2019) and Ms Belinda Murphy (as of 1 July 2019). Board members – Ms Karla Way-McPhail, Mr Barry Coulter AO, Mr Bill Shannon and Mr Justin Mannolini – were reappointed. Mr Ross Rolfe joined the Board between 1 August 2018 and 17 April 2019.
I extend my thanks to Directors, past and present, the NAIF team, our jurisdictions, proponents and key service providers and stakeholders for their contribution and support.
Signed for and on behalf of members of the Board in accordance with a resolution of the Board and in accordance with section 46 of the Public Governance and Performance Accountability Act 2013 (PGPA Act).
Professor Khory McCormick
Northern Australia Infrastructure Facility
20 September 2019