CASE STUDY - INVESTMENT DECISION (January 2019)
NAIF’s $50 million loan to Queensland Airports Limited (QAL) contributes to the redevelopment of Townsville Airport (known as Project Alive).
LOCATION: Townsville, Queensland
PROPONENT: Queensland Airports Limited (QAL)
NAIF LOAN: Up to $50m
TOTAL PROJECT VALUE: About $80m
PUBLIC BENEFIT: $82m over 30 years, 207 construction jobs, 50 operational jobs
Townsville Airport Terminal redevelopment
About the Project
Townsville Airport Pty Ltd is part of the QAL group of airports. NAIF’s loan will support the planned redevelopment of the Townsville Airport terminal to modernise the airport, make it more welcoming and improve efficiency and access.
Townsville Airport is a major economic enabler for North Queensland, supporting more than 3,000 jobs, contributing $420m to the economy and supporting many sectors of the local economy including resources, tourism, agriculture and education. The terminal redevelopment will underpin regional growth by addressing current capacity issues during peak times and provide for the airport’s expected growth in passenger numbers.
- Terminal refurbishment, including increased lounge capacity.
- A new terminal roof.
- New core infrastructure (including water, fire and waste facilities).
- Additional works.
The Value NAIF Brings
QAL worked with NAIF to enable the acceleration of the latter stages of the redevelopment of Townsville Airport, bringing forward the redevelopment of the terminal and remaining project works.
- Indigenous employment target of 3% including initiation of an Indigenous employment program.
- Procurement plan to meet 3% Indigenous procurement target.
- Regular engagement with the Bindal Peoples and Wulgurukaba Traditional Owners to build long term, positive and meaningful relationships.
- Mandatory cross cultural awareness training for all staff.
Economic Impact and Public Benefit
Ensuring Townsville Airport’s sustainability is critical for the local economy and growth of both Townsville and North Queensland.
- Independent analysis forecasts that the infrastructure funded by the NAIF loan will generate approximately $82m in economic benefits for the region over the next 30 years through additional regional visitor spend, traveller time savings and other benefits.
- The project is expected to create 207 additional full time equivalent jobs during construction and 50 full time equivalent operational jobs after the project is finished.
Chris Mills QAL CEO:
"The loan from NAIF paves the way for us to move ahead with this important project, which will address capacity issues for Australia’s 11th busiest airport. The redevelopment has been in the pipeline for several years and the NAIF loan looks set to unlock this opportunity for Townsville and North Queensland."