Download Regional Economic Infrastructure Fund

Regional Economic Infrastructure Fund
Program Guidelines
Round 3 – 2016/17
DEPARTMENT OF TRANSPORT
Version 1
Developed: 1 July 2016
Contents
Overview........................................................................................................................................................ 2
Policy context and program rationale ........................................................................................................... 2
Relevance to NT Government vision: Framing the Future ............................................................................ 3
Relevance to other whole-of-government strategies ................................................................................... 4
Program description ...................................................................................................................................... 5
Description................................................................................................................................................. 5
Objectives ...................................................................................................................................................... 5
What are we trying to achieve? ................................................................................................................ 5
Guiding principles .......................................................................................................................................... 5
How are we going to do it? ....................................................................................................................... 5
Program Scope .............................................................................................................................................. 6
What projects will be funded? .................................................................................................................. 6
Projects that will generally not be funded ................................................................................................ 6
Who can apply ........................................................................................................................................... 6
Criteria and application process .................................................................................................................... 6
Core REIF criteria ....................................................................................................................................... 6
Application process ................................................................................................................................... 7
Withdrawal of approval ............................................................................................................................. 8
Privacy notice ............................................................................................................................................ 8
Terms and conditions .................................................................................................................................... 8
GST ............................................................................................................................................................. 8
Payment arrangements ............................................................................................................................. 8
Evaluation and reporting ............................................................................................................................... 9
For more information .................................................................................................................................... 9
1 – REIF Guidelines Round 3 2016
Overview
This document sets out the program guidelines and application process for the Regional Economic
Infrastructure Fund (REIF).
REIF is the Department of Transport’s grant program to advance the economic development of regional and
remote areas by investing in infrastructure and roads.
The Fund has two strategic objectives:
1. Create sustainable local jobs
2. Develop new or increase growth in business enterprises as a result of investment.
In 2016/17, $10 million is available in grants to local government, community and Indigenous organisations
for the delivery of projects that will stimulate economic development, create employment and benefit
communities.
Policy context and program rationale
Investing in infrastructure and supporting industry development has a major impact on the economic and
social wellbeing of communities across the Northern Territory. Without investment in roads, parks, schools,
museums, hospitals and ports our communities cannot develop and grow. Supporting infrastructure
development to respond to the needs of communities and industry is a key goal of the Department of
Transport. It leads to an increase in economic opportunities, which contributes to building a prosperous
economy and a strong society - key objectives under the NT Government’s plan for the Territory, Framing
the Future.
Investing in a robust road network across the Territory creates new business opportunities in regional areas
and contributes to efficiencies in existing business operations. This in turn leads to the creation of jobs and
wealth in regional and remote areas which has wide-reaching benefits for all Territorians. A reliable and
efficient transport network also means improved access to health, employment and educational
opportunities as well as improved social, cultural and recreational connections for remote Territorians.
The Northern Territory road network is essential to keeping communities connected to the economy.
Reliable road infrastructure is essential to fostering growth across the Northern Territory’s major industries
such as resources, tourism, agriculture and transport – all of which are key drivers of the Territory’s
economy.
The REIF has a clear focus on delivering social outcomes for Territorians through the creation of jobs and
supporting economic growth to advance the development of Northern Australia. The underpinning
approach to the delivery of this goal is the recognition that local organisations, particularly local
governments, are pivotal in identifying opportunities for the development of their own communities and
unlocking the potential of our regions.
Local government makes a significant contribution to the Territory economy, collectively employing
approximately 1,400 people, managing assets valued at over $900 million and spending over $220 million in
the Northern Territory economy every year.1 Local governments are also responsible for management of
approximately one third of the entire NT road network.
1
Local Government Association of the Northern Territory, 'About Local Government', accessed 15 June 2016,
http://www.lgant.asn.au/about_local_government
2 – REIF Guidelines Round 3 2016
While the Department of Transport is responsible for the care, control and management of 22,000km of
the total 36,000km NT road network, local governments manage the majority of the remaining 14,000km of
the network. Councils typically experience considerable budget constraints in raising revenue to undertake
infrastructure upgrades, maintenance and developments on these roads. This is particularly true for
regional and remote based Councils.
Regional Councils rely on grants from the NT and Australian Governments for approximately 65% of their
budgets compared with roughly 22% dependence on grants by Town Councils. This challenge in raising
revenue for regionally based Councils poses issues in meeting the maintenance requirements of existing
roads and planning for future infrastructure needs.
The REIF program is an important initiative addressing local government’s need for resources to enable
infrastructure and economic growth to improve social and economic outcomes in our regions. Further to
this, resourcing local communities to identify and resolve their own infrastructure needs fosters innovation,
sustainability and collaborative, respectful partnerships. This approach is consistent with the Department’s
values outlined in the Strategic Plan 2014-18 which aims to achieve the best results for the NT.
Relevance to NT Government vision: Framing the Future
The REIF will contribute to the following objectives which form part of the Northern Territory Government’s
Framing the Future Strategic Plan.
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An economy that creates wealth and jobs
An economy that captures the ideas, energy and opportunities across the Territory
3 – REIF Guidelines Round 3 2016
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An economy that lands new local, national and international investment
A society that values an individual’s right to freedom and ensures everyone has the same access to
opportunities and resources to make a contribution to, and participate in, society and the
economy
A society that is safe for all – at home, at school, in the workplace and while travelling
An environment that is sustainable
An environment that is well managed including urban design and public space.
Relevance to other whole-of-government strategies
NT Buy local
The Northern Territory Government actively supports local business through procuring its goods and
services in accordance with the Buy Local Plan. Government grant recipients are strongly encouraged to
adopt similar principles when procuring their own goods and services. This ensures that the largest possible
proportion of every dollar spent by the NT Government is retained within and delivers benefits for the
Territory economy and community. For more information visit www.buylocal.nt.gov.au/.
4 – REIF Guidelines Round 3 2016
Program description
Description
The Regional Economic Infrastructure Fund creates opportunities for economic growth in regional locations
by enhancing the appeal and liveability of rural and remote areas and improving local infrastructure. It does
this by providing grants to eligible organisations to undertake small to large size infrastructure projects (and
feasibility studies) which will stimulate economic development, create employment and generally benefit
communities.
Objectives
What are we trying to achieve?
The Fund has two strategic objectives:
1. Create sustainable local jobs; and
2. Develop new or increase growth in business enterprises as a result of the investment.
The focus on creating ‘sustainable’ and ‘local’ jobs is about ensuring employment opportunities, which
come about as a result of the grant, extend beyond the project time frame and lead to ongoing or long
term employment opportunities for people living in regional and remote areas.
Growing business enterprises is about stimulating economic growth in regional and remote areas. In
previous grant rounds, this has primarily focussed on the tourism and agricultural sectors by either
improving access to a location or business, or creating efficiencies in business operation through
infrastructure enhancement.
Guiding principles
How are we going to do it?
Leveraging off other investment
Where possible, REIF projects should complement other investment initiatives leveraging the highest
possible yield in terms of economic and social benefits to the community. This includes leveraging off
private sector investment, other NT Government grants and initiatives, and/or Australian Government
funding.
Adopting a place-based approach
The “place-based” approach which underpins REIF recognises that local government organisations,
community and Indigenous organisations based in the Northern Territory are best placed to identify
opportunities for the development of their own communities. This grass-roots approach is the best strategy
to empower communities to build a prosperous economy and strong society. A place-based approach is
also consistent with principles of self-determination, a key cultural consideration in the implementation of
all government policy.
Maintaining a regional/remote focus on project sponsorship
The majority of the road network under the responsibility of councils falls within Regional Shires. Councils
situated in regional and remote areas rely heavily on grant funding as they have less capacity to raise
revenue from rates when compared to councils situated in urban areas. As such, regional councils are
under considerable financial pressure to resource infrastructure projects and aid economic advancement in
their shires.
5 – REIF Guidelines Round 3 2016
Program Scope
What projects will be funded?
Funding is only available for clearly identified infrastructure initiatives that can be completed and acquitted
within a specified time frame. Projects can extend beyond the 2016/17 financial year.
Projects could include but are not limited to:
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Feasibility studies, detailed project plans or design works
One off capital or minor new works projects
Construction projects.
Projects that will generally not be funded
The following activities will generally not be considered for funding:
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Projects that do not demonstrate economic and social benefits
Projects which are not implementation ready
Projects that do not demonstrate a need
Requests for retrospective funding where projects have commenced (i.e. equipment purchased,
contracts entered into or construction has begun), or those projects that are completed prior to
receiving funding approval
Ongoing operating costs or salary subsidies
Any activity of a commercial or business nature that does not demonstrate direct benefit to the
broader community
Applications submitted by individuals
Non Northern Territory based projects and organisations
Projects by organisations established for profit or for financial gain to members
Projects of government agencies
Other items that the panel assess as not meeting the aims/objectives of the grants.
Who can apply
Applications will be considered from:
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Indigenous organisations and enterprises
Community and non-government organisations that are not-for-profit
Local government authorities
Individuals are not eligible to apply.
Criteria and application process
In addressing the below criteria, applicants should also consider incorporating how the project adheres to
the guiding principles outline above.
Core REIF criteria
Applications must clearly demonstrate how the proposed project:
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Will result in economic benefits to the community. Specifically, how the project will:
Result in new or increased investment opportunities
Complement other investment opportunities in the region
Create sustainable jobs and stimulate economic growth
Remove infrastructure barriers to create a direct incentive for business investment.
6 – REIF Guidelines Round 3 2016
2. Will result in social and community benefits. Specifically, how the project will:
 Provide adequate social return to the community
 Has relevant community and industry support
3. Is feasible in terms of project delivery, including consideration that:
 All legal, land tenure, planning and environmental issues have been identified and resolved or
satisfactory resolution strategies are in place
 Project management support is available for both the developmental and operational phases of the
project
 Project risks have been identified and strategies are in place to manage them.
4. Is financially viable in that:
 The project is not dependent on ongoing funding or continuing government support
 Evidence is provided for approved funding from other sources if they are necessary for the success of
the project.
5. Will maximise value to the Territory.
Application process
Step 1: Prior to application, applicants should:
 Establish eligibility to apply. Refer to Program Scope.
 Have a clear understanding of the community need to be addressed, the proposed
work and the expected economic and social benefits.
 Discuss the proposed application with the grants officer (if unsure) to determine
whether it sits within the guidelines.
 Read the terms and conditions outlined in the next section.
Step 2: Preparing the application, applicants should:
 Complete the application form located on the website.
 Attach supporting documentation.
 Email the application to [email protected] before 7 September 2016.
Step 3: As part of the assessment process:
 Applications will undergo a formal assessment process by the Department of
Transport, to determine the proposed project’s eligibility by meeting the core REIF
criteria.
 Eligible applications will then be assessed by a whole-of-government panel prior to
consideration by the Minister for Transport.
 The Chairperson of the panel will make a recommendation to the Minister after
considering a range of elements including the project’s eligibility and criterions
met.
Step 4: Approval and notification process:
 The Minister for Transport will consider the advice received from the REIF panel
and where appropriate, advice from others to determine the approved applications
for funding.
7 – REIF Guidelines Round 3 2016
 All applicants will be advised of the decision relating to their application in writing.
Successful applicants will receive a letter of offer from the Minister for Transport.
The letter of offer will outline the funding obligations within the funding
agreement.
Withdrawal of approval
Government reserves the right to withdraw approval for your grant at any time, if there is a material
change in circumstances in the nature or financial viability of the project or the organisation.
Privacy notice
Information collected from applications will be used to assess applications against the Regional Economic
Infrastructure Fund grants program criteria.
Should an application be successful, information provided may be used for the purpose of promoting and
reporting on the REIF grants program. Information may be distributed via press releases, publications and
websites.
Terms and conditions
Successful applicants will be required to enter into a funding agreement with the Northern Territory
Government detailing all funding obligations and conditions. Detailed terms and conditions are within the
funding agreement.
The standard terms and conditions on which the funding is offered:
 The organising body will use the funds for the approved project as detailed.
 The organising body or, where applicable, its auspicing body will provide a financial acquittal of
grant funding post project completion. A financial acquittal form will be provided along with legal
agreement.
 If, for any reason, it is not possible to carry out all or any part of the project for which the funding is
provided, the Department of Transport is to be notified and either unexpended funds shall be
repaid or variation of purpose proposed.
 The organising body will acknowledge the Northern Territory Government in all relevant promotion
and advertising material.
The funding agreement is a legally enforceable document that clearly defines the obligations of both
parties. The funding agreement aims to protect the Northern Territory Government’s interests and to
ensure the efficient and effective use of public money.
Successful applicants must enter into a funding agreement and undertake the project as stipulated in the
agreement.
GST
Applicants should note that all project costs included in the application must be exclusive of GST.
GST is unlikely to apply to these grants however will be considered on a case by case basis.
Payment arrangements
Payment will be made by direct transfer or monies into the nominated bank account of the organising body
or, where applicable, the auspicing body.
Before payment can be made the following documentation will need to be submitted:
 Signed agreement to conditions of funding; and
8 – REIF Guidelines Round 3 2016
 Tax compliant invoices
After receiving notification of a successful application, the organising body will be forwarded the
agreement documentation for signature and return prior to the funding payment. Larger funds will be
broken into milestones and paid accordingly.
Evaluation and reporting
Successful applicants will be required to cooperate fully with an evaluation which is undertaken either
during or after completion of the project. Successful applicants will also be required to submit progress and
completion reports, assess progress of the project against milestones, outputs and outcomes, and provide
evidence of project completion including photos (where applicable).
For more information
Visit: www.transport.nt.gov.au/ntroads/grants
Phone: 08 8924 7118
Email: [email protected]
9 – REIF Guidelines Round 3 2016