The chocolatier withdrew its application for the cash earlier this year.

The state government will contribute another $8 million to the fund, bringing the kitty to $24 million.

Mr Abbott said under the fund, grants will be provided to private sector projects in sectors such as advanced manufacturing, tourism and agriculture.

Eligible projects will need to attract at least $2 in private sector funding for every $1 provided by the federal and state governments.

Grants applications will open before the end of the year.