CASE STUDY - INVESTMENT DECISION (January 2019)
NAIF’s loan will help expand airport facilities at three Northern Territory airports and support the development of the Territory’s export potential, particularly for agricultural products.
LOCATION: Darwin, Tennant Creek and Alice Springs, Northern Territory
PROPONENT: Northern Territory Airports Pty Ltd (NTA)
TOTAL PROJECT VALUE: $300m
PUBLIC BENEFIT: More than $127m over 20 years, 980 construction jobs, 142 operational jobs, 500 indirect/supply chain jobs
Northern Territory Airports project
About the Project
The project investments will increase the operational capacity of each airport, create jobs, drive new export opportunities into Asian markets, boost the Northern Territory's tourism potential and support energy security for businesses and residents in the north.
- Freight, cold storage and an export/ import hub at Darwin International Airport.
- Solar arrays at Darwin, Alice Springs and Tennant Creek airports servicing local communities and the airports.
- A proposed off airport multi user battery storage in Darwin.
- Installation of new runway lighting and overall upgrades across three airports.
The Value NAIF Brings
NAIF’s ability to provide concessional tenor and pricing will enable the acceleration of the development of these important facilities which generate significant public benefit.
- Indigenous employment target of 10%.
- Development of a Procurement Plan with a focus on Indigenous employment and training opportunities. For each capital project a Project Management Team will oversee procurement activities, workforce commitments and broader partnerships with specialist Indigenous engagement experts and employment service providers, building on a previous partnership with a civil construction contractor with a 30% Indigenous workforce.
- Key Indigenous stakeholders have been identified for ongoing engagement, including the proponent looking to partner with the Larrakia Development Corporation for the delivery of cultural awareness training and the exploration of other opportunities.
Economic Impact and Public Benefit
Independent analysis forecasts that the infrastructure funded by NAIF will support up to 980 jobs in the construction phase, 500 indirect jobs through the supply chain and over 142 new ongoing operational positions. Refer also to the benefits noted by NTA CEO, Ian Kew.
Ian Kew - Northern Territory Airports CEO:
"This investment will grow our reputation and capacity to attract bigger planes to carry more tourists and more of our region’s iconic products such as mud crabs, barramundi, mangoes and melons to the world. These can be processed through the new VHT plant and stored in the new cold storage facility before being air freighted straight out of Darwin, rather than being trucked to Queensland."