Northern Territory Treasury Corporation annual report 2014-15
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Northern Territory Treasury Corporation -- Periodicals; Finance, Public -- Northern Territory -- Periodicals
Northern Territory Treasury Corporation
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Northern Territory Treasury Corporation12 Client Services Loans NTTC lends funds to the Territory Government, government business divisions, government owned corporations, local authorities and other government organisations. Loans are issued in accordance with commercially based guidelines and practices. All loans are approved by the Treasurer in accordance with section13(2)(b) of the NTTC Act and section 31(1) of the FMA. As at 30 June 2015, NTTC had a total outstanding loan portfolio of $4622million, approximately $59million lower than the previous financial year. Table6 on page 13 shows the comparative analysis of total outstanding loans provided by NTTC over the past fiveyears. A full listing of NTTCs loans are provided in Appendix B on Page 36. General Government Agencies General government agencies are funded through the CHA via appropriations, some of which are funded by loans provided by NTTC. CHA is the parent body that represents the Territory Governments ownership interest in governmentcontrolled entities. The funds are used to finance general government activities and the Territorys major infrastructure projects. As at 30 June 2015, loans to the general government sector totalled $3129million, an increase of about $111million from the previous financial year. The net movement represents the $170million debttoequity swap agreement between CHA and Power and Water Corporation (PWC), less a $45million early repayment of loans by CHA and the scheduled loan repayments throughout the year. Government Business Divisions Loans to government business divisions represent borrowings by Territory Government owned entities that operate on a commercial basis. The funds are used to finance capital expenditure requirements. As at 30 June 2015, loans to this sector totalled about $279million, approximately $48million lower than the previous financial year. This net movement resulted mainly from the decision by DarwinPortCorporation and NT Home Ownership to apply some of their surplus cash balances to repay $28.4million and $5million of their outstanding loans, respectively. In addition, LandDevelopment Corporation had a $5million loan scheduled to be refinanced during the financial year but elected to repay the loan in full. The remaining $10million was a result of scheduled loan repayments throughout the year. Government Owned Corporations Loans to government owned corporations represent borrowings by Territory Government owned entities that operate on a commercial basis but whose operations are not guaranteed by the Crown and do not make the Territory liable for its debts, liabilities or obligations. The funds are used to finance capital expenditure requirements. On 1 July 2014, the legislation came into effect to separate PWC into three separate government owned corporations namely PWC, Jacana Energy and Territory Generation. PWC continues to manage the electricity network and remains the water and sewerage services provider. Jacana Energy as a retailer looks after electricity accounts and customer needs, issues bills and collects payments while Territory Generation supplies electricity to the market including Jacana Energy. Loans to this sector totalled approximately $1214million as at 30 June 2015, a decrease of about $123million from last years balance of $1337million. This is the net movement resulting from the $70million of new loans provided to PWC over the course of the financial year, less the $170million debttoequity swap with CHA and the scheduled loan repayments throughout the year.