The National Reconstruction Fund Releases its Investment Guidance and is now open for proposals
The National Reconstruction Fund has released its Investment Guidance and is now welcoming investment proposals.
The National Reconstruction Fund (NRF) was set up by the Federal Government to support, diversify and transform Australian industry and the economy through targeted co-investments in 7 priority areas.
The co-investments can be in the form of debt finance, equity finance and guarantees. There are no set minimum or maximum funding limits.
What will the National Reconstruction Fund (NRF) will invest in?
At a high level the NRF is targeted at proposals that:
- are solely or mainly Australian based,
- generate positive public policy outcomes,
- demonstrate a positive return on investment or the ability to repay debt. Note the NRF has fund return targets which will influence how your potential returns are considered.
- are in one of the 7 priority areas (see below)
- are not in prohibited areas such as coal and gas extraction or native forest logging
The 7 priority areas
- value-add in resources which includes: manufacture innovative products used in or in connection with mining, such as exploration and drilling technology, safety solutions and transport; process, refine and use minerals here in Australia including refining materials for use in battery manufacturing and technologies; manufacture products and technologies to advance mineral processing, refinement and fabrication
- value-add in agriculture, forestry and fisheries such as manufacturing products for use in or in connection with primary industries or processing primary industry outputs into higher value goods. Note does not include new farms or plantations.
- Transport such as the manufacture of vehicles and parts for: aircraft; road; vehicles; rail vehicles; ships. Note doesn’t include infrastructure such as roads or railways. It does include the products and components used in infrastructure, such as road surfacing materials or rail sleepers
- medical science manufacturing including products for therapeutic use such as: medical devices; medicines; personal protective equipment; vaccines. Note does not include veterinary products, cosmetics or health foods. There is now a “Medical Science Co-investment Plan” produced by the Federal Government which can help you understand what the NRF is focused on. Click here to read this.
- renewables and low emission technologies – manufacturing products related to: renewable energy generation, transmission, distribution, or storage; reducing greenhouse gas emissions; energy efficiency; recycling; waste reduction or resource recovery.
- defence capability – manufacture of products that are wholly or primarily for use in or in connection with defence.
- enabling capabilities focused on technologies and products that support the advancement of Australia’s industrial capability. Includes quantum, AI, robotics and advanced manufacturing.
Submitting a Proposal
You can now submit an online proposal. But this is very basic which allows you to add up to 1400 words. So pretty succinct and short.
But rest assured if this tweaks their interest you will need reams of support especially around the project including financial, legal, technical, environmental, social and governance outcomes and risks
So don’t do this without a fairly comprehensive business case.
And if you want help with your financial business case feel free to contact me below
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