ANNOUNCEMENT 15 Sep 2021

On 15 September 2021, the Australian government-funded Northern Australia Infrastructure Facility (NAIF) announced the approval of an AUD 32 million loan to three companies constructing a cotton gin.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

Northern Australia Infrastructure Facility. Media. News. "Cotton gin just the tonic for the Kimberley" of 15 September 2021. Available at:
https://naif.gov.au/media-releases/cotton-gin-just-the-tonic-for-the-kimberley/

Ord River District Co-operative Ltd (ORDCO). Product Range. Available at:
http://ordco.com.au/

Inception date: 15 Sep 2021 | Removal date: open ended

State loan

On 15 September 2021, the Australian Government-funded Northern Australia Infrastructure Facility (NAIF) approved a loan of AUD 32 (USD 23.4) million for the construction of a cotton gin. The project will be developed by Kimberley Agricultural Investment, the Ord River District Cooperative, and the Miriuwung Gajerrong Corporation.

The objective of the financing is to fund the first phase of the development of a cotton gin in the town of Kimberley in the Western Australian region. According to the Minister for Agriculture and Northern Australia, David Littleproud, "there is a lack of cotton gins in the region, and building one will remove the need to transport unprocessed cotton interstate," which will also stimulate future economic investment in the area. It is expected that the cotton gin construction project will create around 21 temporary positions during construction and 70 permanent jobs.

With the announcement of this project, the NAIF has invested over AUD 3.1 (USD 2.3) billion in various infrastructure projects. Please, see related state acts.


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 (please, see related state acts).

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

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 15 Sep 2021 | Removal date: open ended

Local sourcing

On 15 September 2021, the Northern Australian Infrastructure Facility (NAIF) approved financing for the construction of a cotton gin that is subject to local content requirements as stated by the Australian Industry Participation (AIP) policy. The project will be developed by Kimberley Agricultural Investment, the Ord River District Cooperative, and the Miriuwung Gajerrong Corporation.

The AIP framework states that all programs enclosed in this policy must encourage the participation of Australian companies in major public and private projects carried in the country. In this sense, companies applying for a NAIF credit line exceeding AUD 20 (circa USD 14.8) million must provide an AIP Plan to demonstrate the strategy to maximise opportunities for the Australian industry to participate in the project.

 
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