On Monday, the NSW Government announced the Investment Delivery Authority (IDA), a new authority designed to fast track major investment projects in NSW, will be ready to accept Expressions of Interest (EOIs) in the coming weeks. The IDA is expected to assist around 30 large projects per year, accelerating $50 billion of investment in NSW.
The NSW Government pledged $17.7 million in the most recent Budget to support the IDA. Modelled off the Housing Delivery Authority, the IDA will work to reduce red tape and improve government coordination for major projects. Selected projects will receive accelerated approval for key initiatives and support from a dedicated planning assessment team and multi agency Investment Taskforce based in the Premier’s Department.
The IDA will consider private sector projects (domestic and international) through an EOI process conducted in rounds, with selection based on specific criteria.
The IDA will comprise:
- the Secretary of the Premier’s Department;
- the Treasury Secretary;
- the Secretary of the Department of Planning, Housing and Infrastructure; and
- the Chief Executive of Infrastructure NSW,
and will make recommendations to the Treasurer, the Minister for Planning and Public Spaces and the Minister for Industry and Trade.
Announced on Monday by the NSW Treasurer at the National Tech Summit, the first round of EOIs will focus on projects related to advanced technology and energy, including data centres, renewable energy, energy security and hotel developments.
EOIs will be assessed against two key objectives:
- The first objective is the removal of barriers to major private investment projects that are not primarily residential and that make a significant contribution to the NSW economy. This includes projects that have an Estimated Development Cost of $1 billion dollars or more, or in the case of hotels, $200 million or more. The project also is, or could reasonably be, expected to become a state significant development (SSD), state significant infrastructure (SSD) or critical state significant infrastructure (CSSI).
- The second objective is the support of projects that are commercially feasible, require value-adding interventions and can be assessed quickly. This includes criteria such as secure land tenure for the project and that the proponent is not reliant on government funding which has not already been secured.
More information on the IDA is available here.
A summary of the criteria currently released is set out in the table below.
Criteria for Projects
Objective 1: Remove barriers to major private investment projects that are not primarily residential and that make a significant contribution to the NSW economy.
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Criteria 1: Strategic aligment
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Project aligns with government strategic priorities and policies, including but not limited to the NSW Industry Policy and Trade & Investment Strategy. |
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Criteria 2: Development is of state significance
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Project is or could reasonably be expected to become a state significant development (SSD), state significant infrastructure (SSI) or critical state significant infrastructure (CSSI). |
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Criteria 3: Not primarily residential
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Project is not primarily a residential development (i.e., overarching purpose of the investment is non-residential). |
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Criteria 4: Estimated Development Cost
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Project has an Estimated Development Cost (EDC) of $1 billion or more ($200 million for hotels). |
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Objective 2: Support projects that are commercially feasible, require value-adding interventions and can be assessed quickly.
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Criteria 1: NSW Government can have a meaningful role in resolving barriers
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Proposal will be required to include a clear description of:
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Criteria 2: Project is not reliant on government funding to progress
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The proponent is not reliant on government funding (except where already secured) to progress. This includes financial support such as public private partnership, co-investment, co-funding, land donation, grant, concessional financing, tax concessions or any other form of explicit or implicit subsidy. |
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Criteria 3: Positive commitment to commence
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Demonstrated capability to lodge development application quickly. Demonstrated capability to commence development quickly – within 12 months of approval. |
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Criteria 4: Land tenure is secure and has no significant constraints
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Demonstrated commitments of land ownership or option to purchase land, or other form of long-term land tenure arrangements. Land does not have significant constraints identified that would inhibit the project proceeding for example high biodiversity value, high flood/bushfire/coastal hazard risk, major unresolved Aboriginal Land Claims. |
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Criteria 5: Has addressed any previously withdrawn or refused proposal
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Proponent positively addresses any reasons for refusal or withdrawn development is based on a previously withdrawn or refused application. |
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The government is currently developing further guidance on the process for submitting an EOI.
Further EOI rounds are expected to allow for projects from other industries.
We will continue to monitor the EOI rounds and provide updates on any further developments.
Please contact Larissa Buriak or Chris Mitchell for further guidance.