What is the Community Infrastructure Loans Scheme?
Victoria’s 79 councils provide much of the infrastructure that is fundamental to the functioning of communities across our major cities, towns and regions.
The Community Infrastructure Loans Scheme (the Scheme) is a recognition of the need for continued investment in community infrastructure by councils across Victoria.
The Scheme supports the delivery of community infrastructure by providing Victorian councils with access to low-interest subsidised loans of between $500,000 and $10 million per project.
Loans are financed through Treasury Corporation of Victoria. Participating councils receive an interest subsidy from the Victorian government that will further reduce the interest paid.
All Victorian councils are eligible to apply for loans under the Scheme.
The 2019/20 round is now closed and the successful projects to receive a loan have been announced in March 2020
2019/20 Loans allocation
In the 2019/20 round, 89.5 million in loans have been made available to 14 councils for 20 new projects, representing a total project cost of $166.4 million to support community infrastructure projects across Victoria.
The Community Infrastructure Loans Scheme supports the delivery of community infrastructure by providing Victorian councils with access to low-interest, government-guaranteed loans through Treasury Corporation of Victoria of between $500,000 and $10 million per project. Up to $100 million in loan funds were made available in 2019/20.
Under the Community Infrastructure Loans Scheme, councils are able to achieve savings through having access to low-interest subsidised loans financed through Treasury Corporation of Victoria. The triple-A credit rating currently held by Victoria means that the State can borrow money at cheaper rates than are commercially available. As of 23 September 2019, the interest rate for a 10 year credit foncier loan (monthly repayment instalments) from TCV was approximately 1.42 per cent.
In addition, participating councils receive an interest subsidy from the Victorian government that further reduces the interest rate paid. The subsidy is 50 per cent of the applicable interest rate, up to a maximum of 150 basis points (or 1.5 per cent).
Councils may submit applications for loans of between $500,000 and $10 million per eligible project. Individual councils may apply for one or more loans, up to a maximum of $10 million.
Loan terms are up to 15 years. Treasury Corporation of Victoria will work with participating councils to identify the most appropriate loan term on a case-by-case basis.
Projects that could be supported by the Community Infrastructure Loans Scheme include, but are not limited to:
- community centres and hubs;
- multi-purpose community facilities;
- arts and cultural facilities;
- public libraries;
- kindergartens and early learning facilities;
- restoration of heritage buildings to enable community use; and
- parks, play spaces, reserves and trails.
For more information on the CILS, please contact:
Local Government Victoria
(03) 9948 8536