Any loan the Northern Australia Infrastructure Facility (Naif) gives to Adani’s Carmichael coalmine project would likely be unlawful, according to the former head of the Clean Energy Finance Corporation (CEFC), which operated under an almost identical mandate.
Naif, which was set up to give $5bn of concessional loans to support the development of northern Australia, operates under an investment mandate that includes a clause saying it “must not act in a way that is likely to cause damage to the commonwealth government’s reputation, or that of a relevant state or territory government”.