Economic Investment Fund Investment guidelines

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1 Economic Investment Fund Investment guidelines

2 Disclaimer Investment Attraction South Australia and its employees do not warrant or make any representation regarding the use, or results of the use, of the information contained herein as regards to its correctness, accuracy, reliability and currency or otherwise. Investment Attraction South Australia and its employees expressly disclaim all liability or responsibility to any person using the information or advice. These guidelines are subject to change by Investment Attraction South Australia. January 2016.

3 A message from the Minister South Australia is open for business as it seeks to transform itself from an old to a new economy. Our State has a robust, globally engaged economy in one of the most attractive places in the world to live and work. We are committed to exploring new ideas; we re open to new business and we re forging beneficial international partnerships that will sustain our economy for generations. This is South Australia s approach to a transformational economic shift common to many developed economies. International trends driving this shift include competition from low-cost, high volume manufacturers, global demand for resources, lower commodity prices and the need for energy solutions in newly industrialised economies. The South Australian Government is working with business and industry to leverage opportunities that help drive this economic transformation in our country. Our priority is to work with investors to create successful new business ventures that diversify our economy and create sustainable jobs in our State. We are a national leader in renewable energy. It is our goal for Adelaide, our capital city, to become the world s first carbon neutral city and the South Australian Government has set an investment target of $10 billion in low carbon energy generation by South Australia continues to have a strong manufacturing base, including submarines, warships and high-value, advanced manufacturing in the health, medical devices and electronics sectors. Our State is also primed to take this expertise to the next level with our world-class education system, leaders in research and development and a flexible and skilled workforce. To leverage these opportunities, South Australia needs capital foreign direct investment, national investment or re-investment by established companies. This government wants to support you to make an investment decision that grows your company and drives an expansion of our economy. We look forward to working with you to determine if South Australia is right for your business. The opportunities are vast. South Australia is home to a diverse minerals and energy industry with assets which earn the State a ranking as Australia s top resources investment destination. South Australia is a leading agriculture region, with world-renowned premium food and wine exports. Hon Martin Hamilton-Smith MP South Australian Minister for Investment and Trade

4 A message from the Chairman, Investment Attraction South Australia Advisory Board Investment Attraction South Australia has been established to drive investment opportunities with the potential to expand and transform our economy. Capturing foreign direct investment (FDI) is fundamental to our prosperity, with examples from all over the globe proving FDI equals jobs and growth. It is complemented by national investment in our State and re-investment by local companies. This activity provides us with the capital to finance new industries and enhance existing sectors. It s our Agency s mandate to attract capital to growth sectors, establish new operations of international firms and accelerate the start-up of new industries. We are the lead agency within the South Australian Government for all major investment attraction activity from both overseas and interstate companies. In establishing our agency, South Australia s Premier, Jay Weatherill, announced an Economic Investment Fund aimed at bringing new jobs to South Australia. This fund is part of our investment attraction efforts where we open the door to decision-makers and help investors go about setting up a business here. Let s work together to see how we can help your company become our next globally successful South Australian-based venture. Rob Chapman Chairman, Investment Attraction South Australia Advisory Board About the Chairman An influential and senior South Australian businessman, Rob Chapman has had a distinguished career as an executive in the national financial management and banking sectors. Rob was the former CEO of St George Bank, Managing Director of BankSA and the Regional General Manager of the Commonwealth Bank of Australia. Along with his role as Chairman of Investment Attraction South Australia, he currently sits on a number of boards and committees in South Australia including as Chairman of the Adelaide Airport Board, Chairman of Fortis Ago and the Deputy Chairman of the South Australian Economic Development Board. 4 Economic Investment Fund Investment guidelines

5 South Australia at a glance Economic Investment Fund Investment guidelines 5

6 What is Investment Attraction South Australia In October 2015, the South Australian Government established Investment Attraction South Australia (IASA) to lead the State s efforts in pursuing investment from overseas and interstate. IASA s key focus is to capture foreign direct investment which, global examples show, leads to job creation and business growth. The Agency works to attract capital investment in growth sectors, establish new operations of international firms and accelerate the start-up of new industries. What Investment Attraction South Australia can do for you IASA s role is to make life easier for you. The Agency can work with you on all aspects of your project - from initial development stages through to completion to help you locate and grow your business in South Australia. IASA has an experienced and knowledgeable team, committed to understanding your business needs and matching them to opportunities across our vast economic base. South Australia prides itself on providing unparalleled access to decision-makers, offering a clear path to understanding the opportunities that exist in this State and helping you to make your business a success. Investment Attraction South Australia works to: > > understand your business requirements and ensure you have the best support to expedite your project. > > project manage investment proposals simplifying dealings between government and investors to streamline the path to a secure investment in this State > > accelerate your investment proposal and provide policy and regulatory assistance when appropriate > > assist with accessing a skilled local workforce, across a number of industries, ensuring you are immediately connected to professionals who can deliver results > > business-match new technologies, services, innovations, skills or processes to local demands, opportunities and/or researchers and developers. 6 Economic Investment Fund Investment guidelines

7 Essential criteria for the Economic Investment Fund In establishing Investment Attraction South Australia, the Hon. Jay Weatherill MP, Premier of South Australia announced a fund aimed at bringing new jobs to the State; the Economic Investment Fund (EIF). The EIF is complementary to but by no means the driving force of our investment attraction support. The EIF may be available when investment projects deliver significant strategic and economic benefits for the State. All funding provided by IASA through the EIF is subject to compliance with applicable government processes and approvals. The Agency looks forward to working with you on your proposal and will consider all appropriate proposals on their merits. In considering your proposal, the following criteria and information will guide IASA s assessment process. This will include the number of jobs and employee benefits, technology and innovation developed, skills required and other transformational outcomes. 1 The investment strategy, including the benefits of the proposed project and justification for the request being made of government. 2 A business plan with estimates of capital expenditure, forward projections (including profit and loss and cash flow projections), job creation and local industry outputs. 3 Financial capability and capacity of your organisation. The project must be viable and show long-term profitability in isolation of any government funding. 4 Justification for the minimum government investment necessary for the project to proceed. 5 The quality of the project which demonstrates a transformational impact and economic contribution to the State. 6 Impact of the project on the local economy. 7 Projects aligning with, or complementary to, South Australia s strategic advantages will be favourably considered. 8 The extent to which external funding supports the project. Projects with an industry contribution of at least 75 percent are preferred. 9 Understanding of your risk profile and mitigation strategy. 10 Managerial and technical competency to successfully deliver the project and its outcomes. Economic Investment Fund Investment guidelines 7

8 Proposals not considered To clarify the intent of the Economic Investment Fund (EIF), Investment Attraction South Australia is transparent about proposals that will not be eligible to receive funding. Proposals that will not be considered for funding through the EIF include: > > projects already committed > > projects that seek or require an ongoing funding commitment from the Government > > projects that have already received assistance from other relevant funds to achieve the same project outcomes > > projects which are solely transactional in nature and do not lead to any transformational outcomes for South Australia s economy > > feasibility studies and concept funding > > ongoing operating costs (including salaries, etc) > > projects being undertaken to directly or indirectly meet a legal or contractual requirement > > costs associated with preparing applications and project management fees and costs > > projects which will not achieve long-term profitability (in excess of costs) in isolation of any government or grant funding. > > projects undertaken on behalf of third parties. 8 Economic Investment Fund Investment guidelines

9 Next steps Meet with Investment Attraction South Australia to discuss your project We look forward to discussing your proposed project and the potential outcomes it can deliver for South Australia. To organise a meeting with a member of our business development team, please contact: T: +61 (8) E: investinsa@sa.gov.au W: invest.sa.gov.au Economic Investment Fund Investment guidelines 9

10 10 Economic Investment Fund Investment guidelines

11 Our State has a robust, globally engaged economy in one of the most attractive places in the world to live and work. Hon Martin Hamilton-Smith MP South Australian Minister for Investment and Trade Economic Investment Fund Investment guidelines 11

12 Contact details Investment Attraction South Australia T: +61 (8) E: invest.sa.gov.au