Under questioning from Labor Senator Malarndirri McCarthy, Mr Mrdak also confirmed that it was not yet clear how that money would be spent, but indicated that it would mainly be in the form of direct payments to the states.
"I think it's envisaged that it would be grant funding, I believe, but yet to be settled," he said.
"That will somewhat depend on the projects coming forward. Some of them may be amenable to investments through equity or concessional loans.
"So it's not clear at this stage how that will operate."
