Document ID: chunk:federal_register_of_legislation:F2023L01671:clause:2_11
Version: federal_register_of_legislation:F2023L01671
Segment Type: clause
Provision Reference: sch 2 cl 11
Character Range: 11990–13487

11  Alternative Financing Mechanisms
 (1) The Facility may only offer an Alternative Financing Mechanism for a Project if the Facility is satisfied that, unless an Alternative Financing Mechanism is used, the Project would either:
 (a) not proceed; or
 (b) would proceed, but the public benefits able to be achieved would be considerably lower than can be achieved with an Alternative Financing Mechanism.
 (2) Where the Facility considers an Alternative Financing Mechanism is preferable to a loan, it must give the Minister for Northern Australia, with the proposal notice required under subsection 11(2) of the Act, the following information:
 (a) an explanation as to why the Facility considers the Alternative Financing Mechanism is necessary; and
 (b) the estimated commercial value of any concession proposed with the Alternative Financing Mechanism; and
 (c) an explanation as to alignment between the Alternative Financing Mechanism and the Risk Appetite Statement (see section 15 of this Direction); and
 (d) an assessment of any impacts on the appropriation in section 41 of the Act; and
 (e) the proposed exit strategy for the Alternative Financing Mechanism.
 (3) At no time may the total potential liability under outstanding guarantees exceed the amount of the uncommitted balance of the appropriation in section 41 of the Act.
 (4) Criterion 6 in the Mandatory Criteria applies only where the proposed Alternative Financing Mechanism includes equity or an equity‑like investment.