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Federal budget promises billions of dollars for port and water upgrades in the Northern Territory

Federal budget funds for Northern Territory port and water upgrades could take a decade to flow. (ABC News: Isabella Higgins)

Billions of dollars in funding for new port facilities, sealed roads and water infrastructure have been promised for the Northern Territory, but it could take up to a decade before much of the money hits the ground.

As part of its budget, the federal government says it will invest $2.6 billion in "transformational" infrastructure that "unlocks the Northern Territory's exports through Darwin's gateway to Asia".

The most significant of the long-term projects flagged for the region is new infrastructure in Darwin Harbour, including a wharf, an offloading facility and dredging of the shipping channels, all of which come with a price tag of $1.5 billion.

The other key projects include $440 million for new logistics hubs in Alice Springs, Tennant Creek and Katherine, $300 million to support low emissions LNG and clean hydrogen production in Darwin, $200 million to develop a "sustainable development precinct" on Darwin Harbour and another $110 million to seal part of the Tanami Highway in Central Australia.

"These long term investments will unlock new economic frontiers and grow our national economy," Treasurer Josh Frydenberg said.

A $1.5 billion upgrade of port facilities in Darwin has been flagged in the federal budget.  (Supplied: NT Government)

Funding 'conditional'

Funding for the long-term projects announced in the budget has not been allocated over the forward estimates period, which runs until 2025-26.

In a press release, Deputy Prime Minister Barnaby Joyce said the federal government would work with its NT counterparts to determine when the projects will be delivered.

"Funding is conditional pending completed business cases demonstrating value for money and sufficient public benefit for investment, options for co-funding, and consideration of interaction with other relevant processes and initiatives across governments," Mr Joyce said.

Cash splash on water storage and better roads 

While the time frame for some projects is many years away, the federal government has promised to spend hundreds of millions of dollars in the shorter term on water and roads infrastructure.

The water projects include:

The roads projects, which were announced prior to the budget, include:

  • $132 million for tourism roads in Central Australia, including sealing of the Mereenie Loop
  • $55 million for an overpass at the intersection of Tiger Brennan Drive and Berrimah Road in Darwin
  • $50 million for upgrades to the road corridor between Alice Springs and Halls Creek
The notoriously rough Tanami Road between Halls Creek and Alice Springs is set to be upgraded. (ABC Kimberley: Rebecca Nadge)

'New jobs boom for territorians'

NT Chief Minister Michael Gunner has welcomed the budget, claiming the federal government had "signed up to our territory plan".

"We wanted money for jobs and we got it," he said.

"We will use this money to build roads, build new industries and deliver a new jobs boom for territorians."

Mr Gunner said he supported some of the federal government's measures aimed at reducing the cost of living, but said other matters had not been resolved in the budget.

"We continue to call on the feds to join us on a 50-50 funding split for hospitals because Territorians deserve it," he said.

Tennant Creek has been touted as a new logistics hub in the Northern Territory. (ABC News: Samantha Jonscher)

Mosquitoes, rangers and boarding house get cash

Other areas that have received federal funding in the NT include:

  • $173.2 million over two years for critical services in remote Aboriginal communities, which was previously announced
  • $7.5 million over two years to transition the licensing scheme for stores in remote communities, which was previously announced
  • $10.7 million for domestic and family violence services, which was previously announced
  • $6.3 million to support the construction of a boarding facility in Tennant Creek for secondary school students
  • $4.7 million for increased specialist therapeutic services for children with harmful sexual behaviours
  • $600,000 to combat dengue-carrying mosquitoes in Tennant Creek and the wider Barkly region

At a national level, $636.4 million has been promised over six years to expand the Indigenous Ranger Program, which will fund more than 1,000 rangers in land and sea management. 

The funding will establish new ranger groups, bring more Indigenous women into ranger work, and provide pathways for young people, the federal government said.

To help support women who are experiencing sexual harassment, $1.8 million has been promised over three years in the form of grants available to NT and Queensland women’s centres.

Another $1.9 million will go toward the extension of Custody Notification Services (CNS) in the NT and WA by one year, providing a legal hotline designed to help prevent Aboriginal deaths in custody.

Also nationwide, $37.5 million has been allocated to support native title holders to gain greater economic benefits from their land.

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