The northern part of Australia has been celebrating wins in this week’s federal budget announcement.

Western Australia, Queensland and the Northern Territory will see $5 billion in funding for new ports, rail and power projects, if the budget papers pass.

But there is some dispute over how beneficial the plans will be, given that most of the low-interest infrastructure loans will go to public-private partnerships.

For state governments, plans have been maintained for major road upgrades as well including the $5.6 billion Pacific Highway duplication, $2.9 billion Western Sydney infrastructure plan and $6.7 billion Bruce Highway upgrade, as well as the $925 million Perth Freight Link.

On the local government level, communities can benefit from a $45 million Stronger Communities fund.

Every lower house federal MP will be allocated $150,000 from the fund for investment in local infrastructure projects.

While MPs will not receive the funds individually, they will advise and influence in the selection of projects.

They are expected to choose projects of greatest local need and longest term benefit to the community.

The grants program is different to previous ones – such as the Howard government’s infamous ‘Regional Partnership Program’ otherwise known as ‘regional rorts’ – as it does not favour government electorates over those held by opposition parties.

The Local Government Association of Queensland (LGAQ) says it is taking the good with the bad.

“The commitment to unleashing the potential of northern Australia is welcome, particularly the promise to help fund new ports, power and water infrastructure,” LGAQ chief executive Greg Hallam said

“But it is disappointing that the Government has failed to heed local government’s calls to reverse last year’s decision to freeze indexation of Financial Assistance Grants.”

The Australian Local Government Association (ALGA) followed a similar line on the lack of progress on Financial Assistance Grants.

The Budget papers indicate that the Government will restore the indexation of the grants in 2017-18, but the freeze in indexation has already reduced grants to councils by an estimated $96 million in 2014-15.

They expect an additional $200 million will be foregone in the coming year, and a further $308 million will be lost from the value of the grants in 2016-17, the final year of the freeze.

The Government’s own figures estimate that a total of $925 million will be lost over the Budget out years, leading to a permanent reduction of around 13 per cent to the grants into the future.

“These grants are absolutely essential to local communities as they allow councils to provide a reasonable level of service and infrastructure to local residents,” said ALGA president Troy Pickard.

“The permanent loss of a substantial proportion of the grants as a result of the continued freeze on indexation will be felt in all communities,” said Mayor Pickard.