The Victorian Government provided a further $100 million through the 2020-21 Community Infrastructure Loans Scheme (The Scheme) to support local governments in funding community infrastructure.
Through the two rounds, $106 million in loans has been made available to support 17 councils for 23 projects, representing a total project cost of $213 million to support community infrastructure projects across Victoria.
What is the Community Infrastructure Loans Scheme?
Victorian’s councils provide vital infrastructure for communities across the state.
The Scheme supports the delivery of community infrastructure by providing 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 (TCV) and participating councils receive an interest subsidy from the Victorian Government that further reduces the interest paid.
All Victorian councils were eligible to apply for loans under the Scheme.
Please find the 2020-21 CILS Guidelines here
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 credit rating currently held by Victoria means that the State can borrow money at cheaper rates than are commercially available. As of 25 November 2020, the interest rate for a 10-year credit foncier loan (monthly repayment instalments) from TCV was approximately 0.88 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).
The objectives of the Scheme are:
- To facilitate the upgrade and development of significant community infrastructure.
- To incentivise councils to bring forward community infrastructure delivery by providing increased opportunities for councils to access affordable finance.
- To support a range of community infrastructure projects which deliver on the Victorian Government’s objectives.
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.
Please read the 2020-21 Guidelines to see what projects will not be supported under the scheme.
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.
To apply for a loan, council must provide an online project application and supporting documentation to support their project application and demonstrate financial viability and capacity to repay their loan.
Applicants must consult the CILS team before 9 March 2021 on 0411 752 071 to discuss their project proposal and arrange a site visit. This will provide the opportunity for the CILS team to have a better understanding of the project
Project proposals that have not been discussed and a site visit arranged with the CILS team prior to that date will not be considered.
The Scheme is open for applications and will close at 2pm, 23 March 2021.
Successful projects are expected to be announced in June 2021.
Program Supporting Documentation
For more information on the CILS, please contact:
Local Government Victoria
0411 752 071 or CILS@ecodev.vic.gov.au