The Coalition is putting pressure on the northern Australia infrastructure fund to spend more of its $5 billion budget ahead of the federal election as it struggles to find significant projects to back.
Only $800 million has been allocated despite a commitment to spend $2 billion by the end of last financial year.
An $150 million loan towards the expansion of airports in the Northern Territory announced on Thursday was the sixth project funded by the NAIF which was established by former treasurer Joe Hockey in 2015 to help boost development in the northern parts of Queensland, Western Australia and the Northern Territory.
Senior Coalition figures have become increasingly frustrated with the slow progress of the NAIF in assessing and approving funding projects, leading to an overhaul in the investment mandate in April after an independent review found it was too restrictive and was holding back financial support for big projects.
Senator Matt Canavan overhauled the NAIF investment criteria in April.
Senator Matt Canavan overhauled the NAIF investment criteria in April. Dominic Lorrimer
But there is still urgency to push more money out the door before the next federal election which is due early next year.
Northern Australia Minister Matt Canavan welcomed the new funding for NT airports which will be used for a $300 million expansion of facilities in Darwin, Tennant Creek and Alice Springs, saying it would kick-start economic opportunities in the Top End.
"This project will deliver jobs and that is exactly what the NT needs right now," Senator Canavan said.
NAIF chief executive Laurie Walker said the $150 million loan would help fast-track the development of the projects – which also include solar energy farms and a multi-use battery at the respective airports – now scheduled to commence in early 2019.
"These projects will create significant growth opportunities for the Northern Territory through increased capacity to support greater tourist numbers as well as to export more Northern Territorian fresh agriculture and aquaculture produce direct to market," Ms Walker said.
"It demonstrates NAIF's focus on transforming northern Australia through investment in infrastructure."
Ms Walker told a parliamentary committee hearing in February the independent body was on track to meet its projected target of allocating money to three to five projects worth up to $2 billion, by June 30 this year.
But so far NAIF has made six loans totalling $807 million, including a conditional $506 million loan to the second stage of Genex's $1 billion Kidston project in North Queensland, which will use an old goldmine for a pumped-hydro project, supported by wind and solar projects. Other funding commitments include $98 million for the development of technology innovation centre in Townsville, $19.5 million for a road upgrade and $16.8 million for a port upgrade in WA and $7 million for a barramundi farm in the Northern Territory.
Technically, the NAIF does not count the Genex funding as officially allocated money because it is still subject to certain conditions, including the company securing a power purchase agreement for the energy it will produce.
If the $516 million for the Genex project is removed, the NAIF has allocated only $291 million to five projects.
Labor's northern Australia spokesman Jason Clare said they wanted the NAIF to succeed but so far there had only been a "slow trickle" of announcements, saying the funds needed to be pumped into job-creating infrastructure.
Ms Walker has previously defended the slow pace of allocating funds to projects saying all projects needed to be properly assessed through a short list and then a due diligence phase.
Genex executive director Simon Kidston said the company was getting closer to signing an off-take agreement for the pumped hydro project which is one of the conditions for NAIF funding along with finalising an agreement with Powerlink to move the electricity onto the grid. He said the NAIF loan was still crucial for developing the project.
Genex also announced on Friday it had purchased the 50 megawatt Jemalong solar project near Forbes in central-west NSW which is part of its longer term strategy to expand its portfolio of assets and diversity into other regions within the National Electricity Market.
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