The Territory Government will use today’s NT Major Projects Conference to announce how it will invest $200 million in money from the November sale of Territory Insurance Office (TIO).
The NT News reports:
The $200 million contribution to the investment fund represents a $15 million reduction from the amount announced in November, when TIO sold for $424 million to Allianz Insurance.
The remaining $224 million will be spent in the short term, with $50 million allocated for flood mitigation in Darwin and Katherine.
Flooding at Katherine Railway Bridge
Chief Minister Adam Giles will tell the conference the Government will seek to attract a further $800 million in private sector funding, which will make a $1 billion joint public-private fund, the first of its kind in Australia.
“The fund will be used to invest in infrastructure projects across the Territory – creating revenue for the fund, essential infrastructure for Territorians and new jobs across the whole economy,” Mr Giles said.
Mr Giles said he hoped the $1 billion in funding would produce a total of $5 billion of new infrastructure.
“The potential dividends for the Territory in terms of new jobs, new infrastructure and new opportunities for local businesses are huge,” he said.
Among potential investors being canvassed by the Territory Government are superannuation funds, institutional investors and other Australian governments.
Investment decisions will have to meet strict criteria, including meeting a rate of return for investors and promoting the long-term growth of the NT economy.
The fund will operate at arm’s length from the Territory Government, with one Treasury official on its board of five, which will select investment projects.
Treasurer Dave Tollner and Adam Giles
While no projects have been slated by the Territory Gvernment, Mr Giles said roads, hospitals, schools and agricultural projects are all on the agenda.Treasurer Dave Tollner said the fund will have investors locked in and money will be on the ground by the second half of 2016.
“The Territory Government will not sit on its hands waiting for the next Inpex project to come along – we have a plan to build a prosperous economy and we are implementing it,” Mr Tollner said.