On 8 November 2018, Prime Minister Scott Morrison announced the establishment of the $2 billion Australian Infrastructure Financing Facility for the Pacific (AIFFP) to fund high priority infrastructure in the Pacific and Timor Leste.
The $2 billion AIFFP will be comprised of a new $1.5 billion loan facility and $500 million in ODA grants.
It will focus on core economic infrastructure such as energy, transport, water and telecommunications.
The AIFFP will be operational from 1 July 2019. DFAT is designing the facility working closely with Efic, Finance, Treasury and other Australian Government agencies, along with specialist external advice.
The Australian Government is engaging closely with Pacific Governments to ensure the new facility supports the infrastructure development priorities of Pacific countries.
The new facility will maintain DFAT's commitment to environmental and social safeguards and will abide by international rules for debt management. It will respond to infrastructure priorities of Pacific countries and the importance regional countries place on resilient infrastructure and local benefit. It will be a loan and grant facility, designed in such a way that it can evolve over time in response to demand and government decisions.
Ministerial and DFAT consultations with business and civil society since November have informed the design process and we are grateful for advice received so far.
As part of the design process, DFAT welcomes public submissions from business, NGOs and other individuals and groups. The closing date for submissions is 5pm AEST 11 March 2019. Submissions may wish to address the following questions:
- What regional infrastructure priorities should the AIFFP focus on?
- What features would you like to see reflected in the AIFFP design?
Submissions should be no longer than three pages, submitted in PDF format. Submissions should be directed to AIFFP@dfat.gov.au.