This week marks a significant milestone with the release of the Investment Delivery Authority (IDA) Expressions of Interest (EOI) criteria, providing some clarity ahead of the first round opening in the coming weeks.
Here's what we know
The NSW Government has established the IDA to make it easier for businesses to invest, build, and create jobs in NSW. Modelled after the successful Housing Delivery Authority, the IDA will accelerate approvals for eligible domestic and international projects, focusing on supporting and fast-tracking major projects that boost investment, create jobs, and improve productivity across the state.
The IDA will:
- Recommend up to 30 projects annually,
- Streamline the approval process through improved agency coordination, cutting through red tape, and encouraging investment
- Provide support in navigating the planning system and coordinating necessary infrastructure to unlock projects
The IDA will consider major projects from the private sector through an EOI process.
Expression of interest criteria
The EOI criteria for the IDA have been finalised and are available below. The initial EOI round will call for projects related to data centres and technology, renewable energy and energy security, along with hotels critical to visitor economy growth. The criteria for the first round are below, which will open in a few weeks.
Objective 1: Remove barriers to major private investment projects that are not primarily residential and that make a significant contribution to the NSW economy.
- Criteria 1: Strategic alignment - Project aligns with government strategic priorities and policies, including but not limited to the NSW Industry Policy and Trade & Investment Strategy.
- Criteria 2: Development is of state significance - Project is or could reasonably be expected to become a state significant development (SSD), state significant infrastructure (SSI), or critical state significant infrastructure (CSSI).
- Criteria 3: Not primarily residential - Project is not primarily a residential development (i.e., the overarching purpose of the investment is non-residential).
- Criteria 4: Estimated Development Cost - Project has an Estimated Development Cost (EDC) of $1 billion or more ($200 million for hotels).
Objective 2: Support projects that are commercially feasible, require value-adding interventions, and can be assessed quickly.
- Criteria 1: NSW Government can have a meaningful role in resolving barriers - Proposal will be required to include a clear description of the type(s) of government support sought which can provide a meaningful intervention to clear project barriers and how the proponent would work with the government to resolve barriers to delivery.
- Criteria 2: Project is not reliant on government funding to progress - 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.
- Criteria 3: Positive commitment to commence - Demonstrated capability to lodge a development application quickly and commence development within 12 months of approval.
- Criteria 4: Land tenure is secure and has no significant constraints - 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.
- Criteria 5: Has addressed any previously withdrawn or refused proposal - Proponent positively addresses any reasons for refusal or withdrawn development based on a previously withdrawn or refused application.
- Criteria 6: Experience in delivering similar projects in scope and scale - The proponent and its team have the experience, capability, and capacity to complete the project.
What's next?
In the coming weeks, the IDA will open to EOI submissions from the private sector to recommend the first round of IDA projects for fast-tracking through the State Significant planning approval process. Our experience with the Housing Delivery Authority has shown that this is a very successful move by the NSW Government. However, as with any significant change, it may take some time for all the authorities to be fully mobilised and informed.
This initiative signals a new era for major projects in NSW, making it easier for businesses like yours to invest, build, and create jobs. Urbis has strong relationships into NSW Government, and we will keep you updated as developments occur.
If you would like to discuss submitting a major project through the EOI process, please reach out to us to explore how we can advise you through this process.
