Local Government Minister Don Page has today announced that councils can now apply for the millions of dollars in interest subsidies offered by the NSW Government under the Local Infrastructure Renewal Scheme, which will help councils pay for the upgrade and maintenance of infrastructure in their communities.

The five-year, $70 million Local Infrastructure Renewal Scheme – which was announced by Treasurer Mike Baird in the Budget in September – will pay the first 4% of the interest on significant loans that councils take out specifically to pay for the maintenance of infrastructure projects such as roads, community halls, libraries, paths, parks, sports fields and water facilities.

Mr Page said the millions of dollars in interest subsidies offered under the Scheme is expected to unlock between $750 million and $1 billion in infrastructure spending by NSW councils.

“Since the Budget announcement, councils have contacted the Government seeking an opening date for applications for the Local Infrastructure Renewal Scheme and I am pleased to announce that their wait is over – councils can apply from today,” Mr Page said.

“The Local Infrastructure Renewal Scheme is a key aspect of the NSW Government’s Local Infrastructure Backlog Policy and will help NSW councils get on with the task of reducing the vast backlog of infrastructure projects in their communities.

“The Scheme provides interest subsidies to councils to help cover borrowing costs on the loans required to tackle the infrastructure backlog – so, rather than councils carrying the burden of interest payments alone, the NSW Government will pay the first 4% of the interest of the loan.”

Councils must register their interest in taking advantage of the Local Infrastructure Renewal Scheme with the Division of Local Government, after which the Division will email the electronic application form and all guidelines to interested councils.

Councils will be required to fill in their electronic application forms and have their finances assessed by NSW Treasury Corporation (TCorp).

Councils must lodge their completed applications for assistance under the Local Infrastructure Renewal Scheme with the Division by Friday, March 30.

Mr Page said once the application deadline for councils closes on March 30, an Assessment Panel will review councils’ applications for borrowing assistance under the Local Infrastructure Renewal Scheme.

“The Scheme will also assist councils on matters such as better use of debt funding, exploring various borrowing options, and each council’s borrowing capacity,” Mr Page said.

“That will ensure value for money from the projects, while minimising the risk on NSW taxpayers’ money, and the NSW Government’s bottom line,” Mr Page said.

More information on the Local Infrastructure Renewal Scheme will be available from the Division of Local Government and at their website, www.dlg.nsw.gov.au.