ANNOUNCEMENT 12 Jul 2019

The Australian government-funded Northern Australia Infrastructure Facility (NAIF) has announced the approval of a loan to Genex Power Limited.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Minister for Resources and Northern Australia. Media Releases. "NAIF funds groundbreaking Kidston hydro project" Available at: https://www.minister.industry.gov.au/ministers/canavan/media-releases/naif-funds-groundbreaking-kidston-hydro-project

Northern Australia Infrastructure Facility. Media Releases Archive. "NAIF commits up to $610m loan for north Queensland Hydro Power Storage Project" Available at: https://naif.gov.au/media-releases/naif-commits-up-to-610m-loan-for-north-queensland-hydro-power-storage-project/

Minister for Resources, Water, and Northern Australia. Home. Pitt. Media Releases. "North Queensland's Kidston pumped hydro project to create jobs and deliver affordable, reliable power" of 15 April 2021. Available at:
https://www.minister.industry.gov.au/ministers/pitt/media-releases/north-queenslands-kidston-pumped-hydro-project-create-jobs-and-deliver

Inception date: 12 Jul 2019 | Removal date: open ended

State loan

On 12 July 2019, the Minister of Resources and Northern Australia has announced the approval of a loan of up to AUD 610 million (circa USD 427.5 million at the time of the announcement) for Genex Power Limited to build the first-ever pumped hydro energy storage facility in the world.

The resources will be distributed by the Northern Australia Infrastructure Facility (NAIF by its acronym) and will be used to finance the construction of the renewable energy storage facility. The objective of the facility will be to buy and store energy when it is cheap in the market due to production peaks to later sell it back when prices rise due to high demand, which will help lower average wholesale power prices.
 
According to the Minister, the project has the potential to create 510 direct jobs.
 
Northern Australia Infrastructure Facility (NAIF)
NAIF is an AUD 5 billion lending facility created by the Australian Government to finance infrastructure projects located in northern Australia or with significant impact for that region, and that are of public benefit and engage the indigenous people.

The loans provided by NAIF have a lower interest rate than commercial lenders and borrowing tenors of up to 30 years.

Update:

On 15 April 2021, the Minister of Resources and Northern Australia announced that the NAIF loan to Genex Power Limited reached a contractual close. 

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