New laws have been passed empowering Australia’s Export Finance and Insurance Corporation (Efic) to fund the development of infrastructure in Pacific countries that will also have a broad national benefit for Australia.
Minister for Trade, Tourism and Investment, Senator Simon Birmingham said the new law would provide Efic with a more flexible infrastructure financing power as well as help address infrastructure needs in the Pacific.
Senator Birmingham said the new powers would take Australia’s engagement with the Pacific to a new level.
“We know the infrastructure needs of the Pacific are significant, with the Asian Development Bank estimating the region needs $US46 billion ($A64.8 billion) in investment by 2030,” Senator Birmingham said.
“This Bill will also deliver benefits to Australia, including businesses, through their direct involvement in major infrastructure projects and supply chains.”
Minister for Foreign Affairs, Senator Marise Payne said better infrastructure would not only help with the economic development of individual Pacific countries, but across the wider region including in Australia.
“We will continue to engage closely with Pacific Governments in the design process to ensure this new facility supports appropriate development priorities of Pacific countries,” Senator Payne said.
She said the ability of Efic to help finance infrastructure projects would be enhanced by granting it the new overseas infrastructure financing power as well as increasing its callable capital from $200 million to $1.2 billion.
