In today’s AFR pg 4 Northern Australia fund backs barramundi...

In today’s AFR pg 4


Northern Australia fund backs barramundi farm but needs bigger fish

• May 16 2018 at 6:18 PM
• Updated May 16 2018 at 6:18 PM

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Northern Australia Infrastructure Facility chief executive Laurie Walker is confident of hitting key performance indicators by June 30.Alex Ellinghausen
by Brad Thompson
The Northern Australia Infrastructure Facility is looking for a new chairperson as it scrambles to hit the federal government's target of allocating at least $300 million in concessional loans by June 30.

NAIF announced $7.18 million in finance for a Northern Territory barramundi funding on Wednesday as the government searches for a replacement for West Australian businesswoman Sharon Warburton.

Ms Warburton, a director of Fortescue Metals Group, Gold Road Resources and NEXTDC, with strong ties to northern Australia, quit effective from April 30 for family health reasons.

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NAIF chief executive Laurie Walker said she was confident of hitting key performance indicators by June 30 with 20 projects in due diligence and despite the loss of Ms Warburton.

It is required to announce three to five projects with a combined NAIF investment value of $300 million to $1 billion and a total capital value of $750 million to $2.5 billion.

Northern Australia Minister Matt Canavan set the bar slightly lower in a recent interview – putting the upper end of the NAIF investment value at $500 million by June 30 – but Ms Walker said she was unaware of any change.

The $7.18 million towards infrastructure investment at Humpty Doo Barramundi (HDB) is the second project approved by NAIF since it began operating in 2016.

The other project involves a $16.8 million loan towards development of the $125 million Onslow Marine Support Base in Western Australia.

With just under $24 million allocated to date, Ms Walker acknowledged NAIF would need a bigger fish than the barramundi farm to reach its dollar target.

The government relaxed NAIF's investment mandate last month in response to frustration about the slow pace of project approvals under what were very restrictive guidelines.

Ms Walker said the changes had cleared the way for NAIF to provide finance for Humpty Doo Barramundi.

"The loan is for 100 per cent of the debt for the project infrastructure components, which wasn't possible under the previous mandate," she said.

"It demonstrates the additional flexibility that the mandate changes have given us, and how they've helped accelerate NAIF's ability to make investment decisions."

NAIF could eventually provide up to $30 million in finance to the family-owned barramundi farm. Its initial commitment is for a solar farm, fish nursery and processing equipment as the business expands.

HDB, owned by the Richards family, produced about 2000 tonnes of farmed barramundi last year.

Ms Walker said Ms Warburton was a big loss, but her work had put NAIF in a strong position to move into the loan execution stage. NAIF board member Khory McCormick has been appointed acting chairperson.