Source of Performance Criterion: NAIF Corporate Plan FY2019-20, page 20-21.
Performance Criterion | Measure | Outcome | |
|---|---|---|---|
1. | Public benefit | Net public benefit for northern Australia on each project funded | Achieved. Each of the Investment Decision projects has been forecast to generate public benefit. The total public benefit forecast on the eleven approved projects total $4.0bn. Over the eleven Investment Decisions, the forecast quantified public benefit comfortably exceeds the cost of concessions. For each Investment Decision in the period, a case study has been published on NAIF’s website outlining examples of forecast public benefit. They can be viewed here https://naif.gov.au/case-studies/. 737 jobs have been created or supported in FY19-20 as a result of the six projects that have commenced drawdown this financial year. Due to the impact of COVID-19, capex linked to one project in the airport sector was deferred until operating conditions improve. |
2. | Indigenous engagement | Sustainable Indigenous participation, procurement and employment | Achieved. An Indigenous Engagement Strategy was developed by the proponent for each Investment Decision which meets the requirements of the NAIF Investment Mandate. For each Investment Decision in the period a case study has been published on NAIF’s website outlining examples of proposed Indigenous engagement strategies. They can be viewed here https://naif.gov.au/ case-studies/. |
3. | Investment Decisions by NAIF Board | Number of Investment Decisions per annum Dollar value of NAIF Investment Decisions per annum Total capital value of projects supported per annum Over five-year timeframe to 30 June 2021, demonstrate industry and geographic spread across Investment Decisions made | Achieved. Eleven1 Investment Decisions made against a target of between 7-12. Achieved. $1.4bn2 of new investment commitments for those FY19-20 Investment Decisions by NAIF against a target of between $1bn - $2bn. Achieved. $2.0bn3 aggregate total capital value of projects supported by new NAIF investment commitments against a target of between $1.25bn $3bn. NAIF has made excellent progress towards achieving this KPI by 30 June 2021. In the four years to date the NAIF Board has made Investment Decisions to commit loan capital of $2.1bn, the spread by State is - QLD: 43%, NT: 37% and WA: 20%. The sector spread after four years is energy: 33%, transport: 25%, social infrastructure:16%, agriculture & water: 1% and resources: 25%. |
4. | Effective risk management | Compliance with Risk Appetite Statement | Achieved. NAIF’s internal auditor, McGrathNicol has confirmed compliance with NAIF’s Risk Appetite Statement (RAS) in relation to the Investment Decisions made during the reporting period. |
5. | Encourage private sector contribution to financing projects | Number of projects involving private sector financing | Achieved. 73% of FY19-20 Investment Decisions had private sector financing in addition to NAIF financing, against a target of 50%. |
6. | Raise awareness of NAIF value through dissemination of information to industry stakeholders | Level of communication and stakeholder engagement activity | Partially Achieved. Due to COVID-19 restrictions travel and group gatherings were difficult to achieve. In person Board meetings were held in two of the three NAIF jurisdictions during the financial year (Broome WA and Mt Isa, QLD). A meeting was scheduled for Darwin, NT in March 2020, however had to be cancelled due to COVID-19 travel restrictions. In a year disrupted by COVID-19, NAIF representatives presented or spoke at 18 small group or conference events against a target of 20. Fourteen of these 18 presentations were in the first half of the financial year. During the period of COVID-19 related restrictions, NAIF presented at four webinars to industry groups and organisations. There were four newsletters sent out during the year, each to a minimum of 2,000 NAIF stakeholders. There was a total of 28,689 unique viewers of the website over the year, an increase of 62% on the previous year. |
7. | Building diverse pipeline of potential infrastructure projects | Demonstrate industry and geographic spread of potential projects in the NAIF pipeline | Achieved. As at 30 June 2020: There were 28 projects that had reached NAIF’s Due Diligence stage The NAIF pipeline categories were diverse from both an industry and geographic spread. |
8. | Achieve sound financial performance | Operating expenditure is within the departmental appropriation budget At an Investment Decision portfolio level, over the life of the NAIF supported loans – transaction revenue exceeds the operating costs and Commonwealth cost of borrowing | Achieved. NAIF’s operating expenses were within the appropriation budget including the use of retained surpluses from previous year’s budget underspend. On track. At an Investment Decision portfolio level, over the life of the NAIF supported loans (both currently approved and projected), transaction loan revenue is forecast to exceed NAIF operating costs and Commonwealth cost of borrowing. NAIF’s transaction revenue over the financial year was $6.3m, representing a $5.3m increase from FY18-19 and 58% of operating expenses. |
1 This includes an Investment Decision to offer Kalium Lakes project a $10.5m contingency facility to ensure that the project would have the best chance of progressing if their proposed equity raising was not fully subscribed. Due to a successful equity fund raising, this facility was not ultimately needed by Kalium Lakes and therefore it is not included in the NAIF commitments $ amount.
2 This does not include the $ amount for Kalium Lakes Investment Decision (refer to footnote 1).
3 Does not includes the total capital value of the Kalium Lakes Investment Decision (refer to footnote 1).
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https://www.transparency.gov.au/annual-reports/northern-australia-infrastructure-facility/reporting-year/2019-20-20