National Trade Corridors Fund applicant’s guide: Northern call for proposals

The $2 billion National Trade Corridors Fund helps fund transportation infrastructure projects in Canada.

The Northern call for proposals marks the start of the second round of funding. We intend to commit funding from the $400 million envelope to projects located in Canada’s Territorial North (Yukon, Northwest Territories and Nunavut).

As an interested applicant, learn how to apply and what information we need from you in both your initial expression of interest submission and comprehensive project proposal.

In this guide

• Preface
• Part 1 – The National Trade Corridors Fund
  1. About the National Trade Corridors Fund
  2. Program objectives
  3. Eligibility requirements for funding
     • 3.1 Eligible recipients
     • 3.2 Eligible activities for contributors
     • 3.3 Geographic location
     • 3.4 Project start and completion date
     • 3.5 Maximum contribution
     • 3.6 Eligible expenditures
• Part 2 – The expression of interest process
  1. Expression of interest review
  2. How to submit an expression of interest
  3. Where to submit an expression of interest
• Part 3 – The comprehensive project proposal process
  1. Comprehensive project proposal review
  2. How to submit a comprehensive project proposal
  3. How to format a comprehensive project proposal
  4. Evaluation criteria
  5. Where to submit a comprehensive project proposal
• Annex A – Eligible recipients
• Annex B – Eligible and ineligible expenditures
• Annex C – Contribution agreement
• Download the PDF applicant’s guide

Preface

In July 2017, Transport Canada launched the first national call for proposals to make strategic transportation investments under the National Trade Corridors Fund (NTCF). To date, more than 39 projects have been selected for funding. This represents a total federal commitment of more than $800 million for multimodal (rail, road, air and marine) transportation projects in each province and territory. Four of these projects are located in Canada’s Territorial North.

Transport Canada is now undertaking a second call for proposals. This call for proposals is focused specifically on making transportation infrastructure investments in Yukon, the Northwest Territories and Nunavut. It will allocate NTCF funding from the $400 million envelope dedicated to address unique transportation priorities in the Territorial North.

After the first round of funding, approximately $255 million of the envelope remains. This balance will be used to fund projects in this second call for proposals. Eligible projects must be located in Yukon, the Northwest Territories or Nunavut.

This targeted Northern call for proposals will include an expression of interest submission and a comprehensive project proposal.

The expression of interest submission will provide a summary of the proposed project. It will allow applicants to engage Transport Canada early in the application process. Applicants who submit an expression of interest will receive feedback from Transport Canada on key project elements, including whether the project meets this call for proposal’s basic eligibility criteria, and whether it aligns with NTCF objectives.

This initial feedback is intended to help applicants prepare their comprehensive project proposals. It will also support future discussions as needed up to the comprehensive project proposal due date.

An applicant’s comprehensive project proposal will provide a detailed description of the project. It will be the basis for Transport Canada’s project evaluation and selection process.

This guide has been developed to help applicants through the application process, and outlines the nature and type of information that is required for the initial expression of interest submission and the subsequent comprehensive project proposal. This information will allow Transport Canada to conduct a thorough and accurate evaluation of all comprehensive project proposals, and support the assessment of each project’s relative merits.

The application process

In the Northern call for proposals, Transport Canada will evaluate the strength and merit of each comprehensive project proposal to prioritize and allocate federal funding to activities that demonstrate strong support of NTCF program objectives.

 

Expressions of interest must be received at Transport Canada’s national headquarters in Ottawa no later than 11:59 p.m. Eastern standard time on Tuesday, January 15, 2019.

Transport Canada will respond to applicants within 20 business days.

Comprehensive project proposals must be received at Transport Canada’s national headquarters in Ottawa no later than 11:59 p.m. Eastern daylight time on Friday, March 29, 2019.

Part 1 – The National Trade Corridors Fund

1. About the National Trade Corridors Fund

The National Trade Corridors Fund (NTCF) is a dedicated source of funding. It helps infrastructure owners and users invest in the critical assets that support economic activity and the physical movement of goods and people in Canada. It represents a long-term commitment by the federal government to work with stakeholders on strategic infrastructure projects that help to address transportation bottlenecks, vulnerabilities and congestion.

The NTCF is one component of the Investing in Canada Plan. This is the federal government’s strategy for addressing long-term infrastructure needs in Canada and supporting middle-class growth and jobs. At the same time, it is a key component of Transportation 2030, the Minister of Transport’s strategic plan for the future of transportation. The development of this vision, including the NTCF, has been informed by extensive engagement with Canadians from coast to coast to coast along with insights contained in the 2016 Canada Transportation Act Review report.

NTCF funding will be allocated to projects based on their individual merits. These will be assessed according to how they help to strengthen the efficiency and resilience of transportation assets that are critical for Canada’s continued success in international commerce. These assets, which include ports, airports, roads and railways, international bridges and border crossings, are the primary building blocks of supply chains that enable the physical exchange of goods around the world.

A total of $2 billion has been allocated over 11 years (that is, from the 2017-18 to the 2027-28 fiscal year) for the NTCF. Over this time frame, Transport Canada will request funding submissions. This will ensure that potential applicants have an opportunity to submit their proposed projects for funding consideration.

A dedicated envelope of up to $400 million has been set aside within the overall $2 billion NTCF allocation. This allotment:

• will to support trade and transportation infrastructure investments in Canada’s Territorial North
• recognizes that transportation infrastructure needs in Canada’s three territories are varied and distinct
• recognizes that critical transportation investments can:
  • enable new economic and social opportunities
  • strengthen transportation connections with established continental networks

In this second round of funding, Transport Canada intends to commit funding from the $400 million envelope to projects located in Canada’s Territorial North that meet the eligibility criteria and whose benefits align with the objectives of the NTCF program.

Canada Infrastructure Bank

As part of the Government of Canada's Investing in Canada Plan, the federal government also established the new Canada Infrastructure Bank. The bank will invest $35 billion from the federal government into transformative infrastructure projects. These investments will be made strategically, with a focus on large projects that will be in the public interest, such as:

• public transit systems
• green infrastructure projects
• transportation projects

At least $5 billion will be invested through the bank to address trade and transportation priorities across the country.

Submissions to the NTCF may be shared with the Canada Infrastructure Bank.^{Footnote 1}

Learn more about the Canada Infrastructure Bank

2. Program objectives

The NTCF Northern call for proposals will seek to select projects that:

• address the transportation needs of Northern communities, including safety and economic development
• increase the resilience of the Canadian transportation system to a changing climate and its adaptability to new technologies and future innovation
• leverage investments from multiple partners
• support the fluidity of Canadian trade by alleviating capacity constraints and bottlenecks, and strengthen modal interconnectivity and operability

These objectives will serve as principles in the evaluation and selection of projects. They will ensure that the NTCF contributes to Transport Canada’s strategic outcome of an efficient transportation system.

3. Eligibility requirements for funding

To be eligible for funding under the NTCF, the following requirements must be satisfied.

3.1 Eligible recipients

The following eligible recipients are invited to make submissions under this call for proposals for projects located in the Territorial North:

• territories, including territorially owned entities
• municipalities, including local and regional governments and municipally owned entities
• Indigenous governments,^{Footnote 2} tribal councils and other forms of regional government, nationally or regionally representative Indigenous organizations, and/or Indigenous development corporations
• public sector organizations^{Footnote 3}
• federal Crown Corporations or agencies^{Footnote 4} (such as, Parks Canada Agency, Canada Border Services Agency)
• not-for-profit and for-profit private sector organizations, including those organizations headquartered outside of Canada^{Footnote 5}
• academia

Contributions to for-profit private sector organizations may also be considered, but only when the contribution will provide wider benefits, rather than to the recipient alone.

This list has been abbreviated for clarity, in the context of this call for proposals focused on the Territorial North. A full list of recipients eligible for NTCF funding is provided in Annex A – Eligible recipients of this guide.

3.2 Eligible activities for contributions

To be considered for funding under the NTCF, projects must support at least one of the objectives of the program. Contributions will be provided in support of the following eligible activities, when undertaken to complete a project objective:

• prepare (for example, plan, demolish, prepare site), construct, rehabilitate and improve infrastructure assets related to transportation, such as:
  • studies (feasibility, environmental, planning and integration), including computer and simulation modelling, to guide the development of infrastructure projects and technology applications
  • highway, bridge, interchange and road projects along corridors that involve more than one mode of transportation, including those that provide access to border crossing facilities
  • infrastructure that involves more than one mode of transportation (for example, airports, ports, rail yards, facilities, access roads) and make the best use of the overall transportation system to support international trade
  • grade separations that provide more efficient and safer road and rail interaction
• acquire and install technologies and equipment that advance and support the efficient movement of goods and people and help integrate transportation modes in Canada’s transportation corridors (for example, intelligent transportation systems and radio frequency or optical identification readers)

3.3 Geographic location

Projects with components located in the Territorial North and others that cross provincial or international boundaries will also be considered. Submissions for these projects must:

• describe the entire project
• differentiate and describe separately project components located in the Territorial North, and project components located outside the Territorial North (that is, in Canadian provinces or the United States)

Only project components located in Yukon, the Northwest Territories or Nunavut will be considered for NTCF funding in this call for proposals.

3.4 Project start and completion date

The proposed project must be completed by December 31, 2027.

3.5 Maximum contribution

The amount of funding provided under NTCF will take into consideration other sources of funding (including funding from other Canadian government entities) available to the recipient and will be subject to the eligibility of expenditures and maximum amounts payable for the program.

The maximum contribution that may be awarded to a project from the NTCF through this call for proposals is $255 million (that is, the funding in the $400 million envelope for projects in the Territorial North, less the $145 million in commitments made to projects in the Territorial North as part of the first call for proposals).

The maximum level of total Canadian government funding (municipal, provincial, territorial and federal) authorized by this program’s terms and conditions must not exceed 100% of total eligible expenditures for any project.

To ensure that NTCF funding commitments are the minimum necessary to complete eligible project activities, Transport Canada’s maximum contribution will be up to 75% of the total eligible expenditures for a project in the Territorial North, with the following exceptions:

• public-private partnerships (P3) projects, where the maximum contribution will be up to 33% of the total eligible expenditures
• projects with federal Crown Corporations, where the maximum contribution will be up to 100% of the total eligible expenditures

Projects that request less than the maximum contribution will address the leveraging objectives of the program more strongly, and will be evaluated more favourably (that is, as providing better value-for-money for Canadians).

3.6 Eligible expenditures

Contributions will be made towards eligible expenditures directly related to eligible projects that, in the opinion of the Minister or the Minister’s delegated representative, are reasonable, required to achieve the objectives and results of the NTCF program, and have been incurred on or after the signature of a funding agreement.

A full list of eligible and ineligible expenses is provided in Annex B – Eligible and ineligible expenditures of this guide.

Part 2 – The expression of interest process

1. Expression of interest review

Applicants for NTCF funding through this call for proposals are strongly encouraged to submit an expression of interest for the proposed project. The expression of interest submission will provide an opportunity for applicants to verify that they are eligible for funding and that their project meets essential eligibility criteria (provided in Part 1 – Section 3. Eligibility requirements for funding of this guide). It will also allow for discussion of a potential project, leading up to the comprehensive project proposal.

Projects will not be screened out of the application process through the expression of interest review. Applicants who do not submit an expression of interest may still apply for NTCF funding in this call by submitting a comprehensive project proposal (see Part 3 – The comprehensive project proposal process of this guide for more information).

Transport Canada will review expression of interest submissions and contact applicants to provide preliminary feedback, and will notify them as to whether all essential eligibility criteria are met. Below is an outline of the expression of interest process:

1. Applicant(s) must use the current NTCF expression of interest form to create their submissions. The form is available on the Apply for NTCF funding page .
2. Applicant(s) should complete and submit an expression of interest to Transport Canada for review by 11:59 p.m. Eastern standard time on Tuesday, January 15, 2019.
3. Applicant(s) planning to submit multiple projects should prepare separate expression of interest submissions for each project and clearly identify in their covering letter/email that there are multiple submissions.
4. Transport Canada will review the expression of interest submission for completeness and determine whether all essential eligibility criteria are met.
5. Transport Canada will contact applicant(s) within 20 business days from the date of submission, by email or mailing address, to notify them of the findings of the expression of interest review.

2. How to submit an expression of interest

Use the current NTCF expression of interest form to create your submission, available on the Apply for NTCF funding page.

The expression of interest submission should include and address the following elements of the project and/or activity:

• full legal name of the organization applying for the financial contribution
• name and position of a primary and secondary contact for the organization
• mailing address, telephone number, and email address for all correspondence
• overview of the proposed project activities with maps and diagrams (if appropriate) showing the major components and phases of the project
• high-level rationale for the project (for example, addresses urgent needs, supports social development and responds to safety concerns) and context for why the project is important and how it advances the objectives of the NTCF (provided in Part 1 – Section 2. Program objectives of this guide)
• work plan outlining estimated start and end dates, key milestones and major activities, and timelines for key milestones and major activities
• estimate of total project costs (including eligible and ineligible expenditures – please refer to Annex B – Eligible and ineligible expenditures of this guide) and the amount of NTCF funding requested
• sources of project funding (dollar amount) including contributions secured by federal and non-federal entities

3. Where to submit an expression of interest

Applicants should submit their complete expression of interest submission by email or mail/courier service to:

Email: tc.ntcf-fncc.tc@tc.gc.ca

Mailing address:

Transport Canada
NTCF - EOI Submission
Transportation Infrastructure Programs (AHSF)
Place de Ville, Tower C
330 Sparks Street
Ottawa ON K1A 0N5

Part 3 – The comprehensive project proposal process

1. Comprehensive project proposal review

Applicants for NTCF project funding through this call for proposals must submit a comprehensive project proposal for their project. Through the comprehensive project proposal, applicants will provide a detailed description of their project and how it aligns with NTCF program objectives.

Applicants that did not submit an expression of interest may still apply for NTCF funding as part of this call by submitting a comprehensive project proposal.

The comprehensive project proposal review process is summarized below.

1. To be considered in this call for proposals, eligible applicants must submit a complete comprehensive project proposal to Transport Canada’s National Headquarters in Ottawa no later than 11:59 p.m. Eastern daylight time on Friday, March 29, 2019.
2. Transport Canada will provide applicants with acknowledgement of receipt of their comprehensive project proposal within 10 business days from the date of submission. Transport Canada will then screen the comprehensive project proposal for completeness. Transport Canada reserves the right to reject any submissions that it deems to be incomplete.
3. After the comprehensive project proposal submission deadline of March 29, 2019, a cross-disciplinary review committee will evaluate the proposals in terms of their strengths and merit to identify those that most strongly support the NTCF program objectives.
4. Subsequent to the comprehensive project proposal evaluation process, the review committee will make formal recommendations to the Minister of Transport for further approval and final funding determination.
5. Once the Minister has made the final funding determination, Transport Canada will notify both successful and unsuccessful applicants of the outcome.
   • If a project is approved for funding, Transport Canada will issue an approval-in-principle letter. This letter may include funding conditions such as the completion of an environmental assessment, Aboriginal consultations, or other commitments.
   • Transport Canada will provide a draft contribution agreement outlining the terms and conditions for project funding under the NTCF. As Transport Canada approval would be based on the details provided in the comprehensive project proposal, the agreement will be drafted based on the scope of work and funding requested in the comprehensive project proposal. Transport Canada will work with successful applicants to ensure that the project is appropriately represented in the agreement. (Refer to Annex C – Contribution agreement of this guide for further details related to the Contribution Agreement.)
   • The contribution agreement will be signed by Canada and the recipient. The signing of a contribution agreement is the final step in the project approval process. It is important to note that costs incurred prior to the date on which the last party signs the contribution agreement will be ineligible for reimbursement.

Applicants must provide any additional information that Transport Canada deems necessary to assess the eligibility and selection of the comprehensive project proposal and to undertake due diligence.

Submissions may be shared with other Government of Canada departments and agencies, and the Canada Infrastructure Bank, for information purposes only. To be considered for other sources of funding, applicants must make separate submissions to the appropriate authority.

Transport Canada reserves the right to accept or reject any submissions.

2. How to submit a comprehensive project proposal

Comprehensive project proposals will undergo an initial screening for completeness. Transport Canada reserves the right to reject any submissions that it deems to be incomplete and may not provide the applicant the opportunity to resubmit.

To be deemed complete, a comprehensive project proposal must adhere to the format prescribed in Part 3 – Section 3. How to format a comprehensive project proposal, and must include the following items:

• project description including project background, project rationale, alignment with NTCF program objectives, scope of work, work schedule, project delivery method and performance measurement strategy
• funding rationale
• project budget including activity expenditure breakdown, financial plan and evidence of support
• project risks
• cost-benefit analysis
• legal, regulatory and other requirements including a preliminary environmental review, a GHG emissions analysis and Aboriginal consultation information
  • where possible, the comprehensive project proposal must include a climate change adaptation and resilience assessment, otherwise the comprehensive project proposal must describe a plan to study climate change vulnerabilities and address them through appropriate measures
• declarations including conflict of interest and applicant declarations

NTCF funding for this call for proposals may only be provided for project components located in Yukon, the Northwest Territories or Nunavut. If part of the proposed project is located in the Territorial North and crosses provincial or international boundaries, then the project must be partitioned into project components at those boundaries (that is, the project must be subdivided into distinct project components at provincial or international boundaries). This will allow Transport Canada to clearly identify project components located in the Territorial North and project components located outside the Territorial North. The comprehensive project proposal must:

• describe the entire project (such as in the description, background and rationale)
• describe each project component (for example, provide a scope, work schedule, budget and financial plan for each component)

Upon request, applicants may be required to provide additional information to assist Transport Canada in evaluating projects to ensure a fair assessment of merit.

3. How to format a comprehensive project proposal

Comprehensive project proposals may be submitted in English or French. Use the titles provided in this section as headings, and each page must be numbered and include the project name.

With regards to level of effort, Transport Canada expects comprehensive project proposals to be no more than 50 pages in length, excluding any appendices.

A. Cover page

All comprehensive project proposals should have a cover page with the following information:

• the title “Comprehensive Project Proposal for Funding under the National Trade and Corridors Fund”
• the name of the project (should be brief but descriptive)
• the location of the project^{Footnote 6}
• the legal name of the organization applying for funding
• the date submitted

B. Executive summary

The executive summary must address the major elements of the comprehensive project proposal, including:

• a short description of the project including project location, project scope, major activities, and timelines
• the total project cost, total eligible and ineligible expenditures, total federal funding amount requested under NTCF, and all sources of funding for the project including the contributions made by other parties
• a summary of the primary project objectives, briefly explaining how they align with the NTCF program objectives
• a brief outline of the performance indicators that would be used to assess success in meeting both the project and NTCF program objectives

C. Applicant information

The applicant needs to demonstrate that it has the capacity and expertise necessary to ensure the delivery of the project by providing the following information:

C.1 Applicant organization

Provide all of the following information:

• the full legal name and legal status of the applicant organization
• the name and position of the primary and secondary contact for the organization who are authorized to advise and make decisions and representations on the project
• the mailing address, telephone number, and e-mail address
• the organization’s mandate, its role in the project and why it is best suited to undertake the project
• authorizations that provide the applicant and/or the contact the authority to submit this request and/or implement the project, and/or represent the applicant

C.2 Project team

This section should demonstrate the applicant’s ability (in terms of financial resources, personnel and expertise) to complete the project and resolve issues that may arise during the project life-cycle. The information provided should include:

• name of the designated project manager and, as applicable, the project team with all the necessary contact information (name, position title, mailing address, telephone number, e-mail address)
• evidence that the project manager and key staff have the relevant qualifications and experience to undertake, manage and carry out the project on behalf of the organization
• a description of the proposed project’s governance structure, including any partners, their role and how they would contribute to the project
• any partner organization’s legal name, address and point of contact

D. Project description

This section describes the issue(s) that would be addressed by the project, the project scope and activities, and how they are relevant in achieving NTCF program objectives. Provide the following information:

D.1 Project location

• provide the location of the project, including the start and end points (specifically, the longitude and latitude) of each major component
• clearly indicate which territory or territories the project is located in^{Footnote 7}
• indicate if there are project components located in Canadian provinces or the United States

D.2 Project background

• describe the existing conditions, constraints or weaknesses (such as lack of infrastructure, changing environmental conditions and level of service) that will be improved by project implementation
• provide a condition assessment of the present infrastructure, facility or equipment, as applicable
• describe any work that has already been completed in relation to this project, both by the applicant or by other stakeholders
• provide any other relevant background information

D.3 Project rationale

• describe the implications, as they relate to the relevant NTCF program objective(s), of the project not being implemented (that is, the “do nothing” option)
• describe how the proposed project would respond to the demonstrated need, including how the project aligns with the relevant NTCF program objective(s)
• state how the project overlaps, supports or enhances any aspect of previous and/or planned work (such as planned investments by private sector partners)
• include a summary that quantifies forecasted improvements in the short-term (5 years) and longer term (20 years) that would result from the project completion (such as improved reliability, extended operating season, annual traffic growth rates of goods and people and economic growth)

D.4 Alignment with NTCF program objectives

• clearly explain how the project aligns with the NTCF program objective(s) as described in Part 1 – Section 2. Program objectives of this guide
• Transport Canada will use Table 9 in Part 3 – Section 4. Evaluation criteria of this guide to evaluate how a proposed project aligns with the NTCF program

D.5 Project scope

• present the overall work plan to ensure delivery of a quality project within the project’s timeframe and budget
• describe the major components and phases of the project, and present the corresponding scope of work and project activities, including details of how the activities will be undertaken and by whom
• provide information related to any partners that will have roles and/or responsibilities to implement the project
• include relevant project maps, plans and/or diagrams

D.6 Work schedule

• provide the project start date and completion date, as well as the anticipated timelines for key milestones and major project activities
• describe project dependencies, interdependencies or hurdles to implementing the project
• provide the timelines for securing required permits and approvals, if applicable
• include any necessary provisions to address the requirements indicated in Table 6 of Section I.2 - Climate change adaptation and resilience assessment of this guide

Refer to Table 1 below for an example of a project schedule. As this is only an example, applicants should provide all applicable key milestones and relevant project activities and include the corresponding timelines.

Table 1: Project schedule example

Project activity / milestone	Timelines
	Start date	Completion date
Project design and surveying
Environmental assessment
Aboriginal consultations
Construction and other permits (specify)
Tender call
Start of construction
Substantial completion
Project completion

D.7 Project delivery method

The comprehensive project proposal must include the current status of the project planning/design and timelines as well as how the project will be delivered (such as design-bid-build, design build, alternative financing and procurement method).

D.8 Performance measurement strategy

The performance measurement strategy is an important component of the comprehensive project proposal. The results from these project evaluations will help to establish important lessons learned about the project itself and contribute to related Government of Canada evaluation exercises at the program funding level. Provide the following information:

• create a performance measurement strategy with expected project outcomes and/or outputs
• using Table 2 below as an example, list these project outcomes/outputs
• also using Table 2, for each specific outcome/output, identify performance indicators, the current performance, the target performance after the completion of the project, the sources of the data, and the frequency at which the data will be collected
• describe the methodology that would be used to measure the achievements of project goals and objectives
• performance results should be provided as data and not as a summary of information

Table 2: Performance indicators measurement template

Outcomes / outputs	Performance indicator	Current performance	Performance target	Source of data	Frequency of data collection

E. Funding rationale

The comprehensive project proposal must include a rationale for federal funding, the context for why the project is important and how it addresses unique and urgent transportation needs in Canada’s Territorial North. It should include:

• an analysis of the benefits of the project/activities
• a demonstration of how the project aligns with local, regional, territorial or national transportation priorities
• an explanation of how the financial support of the Government of Canada and, if applicable, of other funding sources is required to enable the implementation, enhance the scope, or accelerate the timing of the proposed project/activities
• the data and sources used to support investment decisions

F. Project budget

The comprehensive project proposal must include an expenditure breakdown by project activity and a cashflow forecast for all phases of the project delivery for each fiscal year of the project. For the following sections, please refer to Annex B – Eligible and ineligible expenditures of this guide.

F.1 Activity expenditure breakdown

Referring to Table 3 below as an example only, provide the following information:

• estimated total project cost, including all eligible and ineligible expenditures under the NTCF
• a project/activity budget and cashflow forecast, including estimates for substantive phases of project delivery for each fiscal year of the project
• a statement as to the accuracy and level of confidence of the cost estimates
• a statement that the applicant will be responsible for all cost overruns
• include any necessary provisions to address the requirements indicated in Table 6 of Section I.2 - Climate change adaptation and resilience assessment of this guide

Table 3: Project activity expenditure breakdown example

Project activity	Project costs by fiscal year (April 1-March 31)
	2019-20	2020-21	...Footnote *	Total
A – Ineligible expenditures by project activity and fiscal year
List all ineligible expenditures
Ineligible expenditure A1 (e.g., costs before CA signature)
Ineligible expenditure A2 (e.g., legal fees)
Ineligible expenditure A3 (e.g., acquisition of land)
Total ineligible costs:				$ Total A
B – Eligible expenditures by project activity and fiscal year
List of eligible expenditures
Eligible activity B1 (e.g., environmental assessment)
Eligible activity B2 (e.g., site preparation)
Eligible activity B3 (e.g., construction)
Total eligible costs:				$ Total B
Total project costs (ineligible + eligible)				$ Total A + Total B

F.2 Financial plan

Applicants must provide all of the following project information:

• a financial plan, including the disclosure of all sources of funding for the project (secured and anticipated) and the estimated cashflow for each fiscal year of the project, referring to Table 4 below as an example
• the requested NTCF contribution (refer to Annex B – Eligible and ineligible expenditures of this guide), the applicant’s contribution to the project and any other sources of funding, including any other federal sources of funding
• evidence of the applicant’s ability to fund upfront expenditures and operating costs (such as statements and letters of commitment)
• assurance of capacity to operate and maintain the service or infrastructure for a minimum of 25 years after it is completed
• a summary describing whether the project has the ability to generate revenue, how the fees would be collected and the anticipated annual revenue

The NTCF contribution should not exceed the maximum applicable contribution rate, as indicated in Part 1 – Section 3.5 Maximum contribution of this guide, over the course of the project (for example, the early years of the project should not be financed solely by the NTCF contribution as this would exceed the maximum contribution rate).

Table 4: Project costs by funding source and fiscal year example

Funding partners		Funding sources by fiscal year (April 1-March 31)
Funding source	Secured funding (Yes/No)	2019-20	2020-21	…Footnote *	Total
A – Funding sources for ineligible costs by fiscal year
Applicant
Any other sources of project funding (specify each)
Total ineligible costs:					$ Total A
B – Funding sources for eligible costs by fiscal year
NTCF contribution
Applicant
Any other sources of project funding (specify each)
Total eligible costs:					$ Total B
Total project cost					$ Total A + Total B

F.3 Evidence of support

The comprehensive project proposal must include a letter of intent from each partner organization indicating the type of financial or in-kind support being provided. Attach as an annex to the comprehensive project proposal.

As part of the review process, Transport Canada may contact partner organizations to confirm details provided and may request additional information. These letters must include:

• contact information
• a statement of intent or support for the proposed project
• a description of the nature, extent, sources and valuations of in-kind contributions

The comprehensive project proposal should demonstrate that the proposed project is consistent with applicable:

• federal, territorial, regional, or municipal planning documents
• growth management plans and other relevant guidance documents (such as land use plans and transportation master plans)

G. Project risks

The comprehensive project proposal must include an overview of the project risks, the significance of their impact and likelihood, and the mitigation measures/strategies the organization plans to adopt.

• Risks are uncertainties or constraints that may impact project completion within the proposed scope, timelines and budget. They often include short construction season, delayed permits or materials and lack of participation. Clearly indicate the implications to the schedule if approval dates are delayed. Include any necessary provisions to address the requirements indicated in Table 6 of Section I.2 - Climate change adaptation and resilience assessment of this guide
• Mitigation measures are the planning and management activities that the organization will undertake in the course of the project to avoid these risks and reduce their consequences or impacts on the project

H. Cost-benefit analysis

The comprehensive project proposal must demonstrate a sound analysis of the anticipated safety, efficiency, environmental, social and economic benefits of the project.

If applicable, provide a summary of the cost-benefit analysis for the project, including:

• a description of the methodology used for the cost-benefit analysis
• a statement of the major benefits of the project, such as
  • travel time savings
  • reduced safety costs
  • expanded capacity
  • sustainable development
  • how the local and/or regional community (both businesses and residents) benefit from the project
• the net present value, internal rate of return and net cost-benefit ratio
• a sensitivity analysis
• the evaluation period (use 30 years) and discount rate (use 10%)

I. Legal, regulatory and other requirements

The comprehensive project proposal must:

• identify any legal or regulatory requirements that apply to the project
• demonstrate that the project will adhere to all applicable federal legislation
• indicate the status and estimated timelines of any approval/permits/licenses that are required

I.1 Preliminary environmental review

The information to be provided in this section relates to Government of Canada requirements under environmental/impact assessment regimes in the North and will be used to establish potential future environmental/impact assessment requirements.

The environmental/impact assessment process in Canada's northern territories is based on a unique co-management approach, rooted in the legal and cultural frameworks of land claims agreements with Indigenous peoples.

In the North, projects may be required to undergo an environmental review process, depending on the nature of the work and the region they are located in. Environmental/Impact assessment processes vary between the regions. Figure 1 below outlines the regimes that apply to each region.

Figure 1: Map of environmental assessment regime regions

 

Assessment Regime Region	Environmental Assessment Regime
Yukon	Yukon Environmental and Socio-economic Assessment Act (YESAA)
Northwest Territories	Mackenzie Valley Resource Management Act (MVRMA)
Nunavut	Nunavut Planning and Project Assessment Act (NuPPAA)
Inuvialuit Settlement Region	Inuvialuit Final Agreement (IFA) and Canadian Environmental Assessment Act, 2012 (CEAA 2012)

Applicants are required to complete a Preliminary Environmental Review of their project by answering the questions found in Table 5 that follows.

Table 5: Preliminary environmental review table

Identification of environmental/impact assessment requirements
1. Where is the project located?
Territory or Territories [or Province(s)]:
Latitude and Longitude:
2. Does the project require any type of environmental review under northern legislation or land claims agreement(s)? Yes No TBD
If yes, please describe Northern process(es): Registry #: Start date: End date: Results:
3. Does the project cross any territorial (or provincial) boundaries? Yes No
If yes, please describe Which territories (or provinces)?: Does the project require an assessment under a provincial regime? Yes No
If yes, please indicate Provincial process(es): Registry #: Start date: End date: Results:
4. If the project will be located (either in full or in part) in the Inuvialuit Settlement Area or in a province, does it include one or more physical activities that are designated under CEAA 2012’s Regulations Designating Physical Activities? Yes No TBD
If yes, has a project description been submitted to the Canadian Environmental Assessment Agency? Yes No
If yes, please indicate Project type: Canadian Environmental Assessment Registry (CEAR) #:
5. If any part of the project is located within the Inuvialuit Settlement Area or within a province, will it be carried out on federal lands? Yes No TBD
If yes, please indicate The federal land owner A description of federal lands (attach map if available) Is the entire project footprint is located on federal lands? Yes No
If no, please indicate the portions that will take place on federal lands:
Has a federal lands environmental review been completed? Yes No
If yes, please indicate Date of completion: The Federal Authorities involved:

I.2 Climate change adaptation and resilience assessment

Increasing the resilience of the Canadian transportation system to a changing climate is one of the key objectives of the NTCF. In the North, some key climate risks include:

• temperature and precipitation changes
• extreme weather events
• changes to surface snow and ice (including permafrost)
• changes to sea levels and streamflow
• coastal erosion
• fog
• wind

The integration of climate change adaptation and resiliency considerations in project development:

• supports the safe, efficient and reliable operation of assets
• optimizes a project’s cost over its full lifecycle (such as by reducing frequency of required maintenance)
• mitigates the negative effects a project may have on climate change-related phenomena (such as a disruption of thermal regimes in vulnerable permafrost regions)

Changes to design, construction techniques, or planned operating and maintenance protocols are examples of measures that could be implemented.

Applicants are required to assess climate change risks related to their project and duly consider and integrate results into their project, where appropriate. The timescale of the assessment should match the intended lifespan of the asset.

As indicated in Annex C – Contribution agreement of this guide, all successful projects will be monitored through an agreement monitoring committee. This will include monitoring of and reporting related to climate change risks and measures undertaken to respond to these risks.

For further information on climate change risks in northern areas, potential adaptation practices, resources and a glossary of terms, please consult the following websites:

• Climate Risks and Adaptation Practices for the Canadian Transportation Sector 2016
• Resources for Resilience Assessments, Climate Lens - General Guidance

Applicants must select the most appropriate of the three following options, indicate how it applies and provide the required information in their comprehensive project proposal.

1. Climate change risks to the project have been considered through a formal climate risk assessment.^{Footnote 8}
   Required information: Describe how the findings of the assessment were considered and integrated into the project, and include the climate risk assessment as an annex to this application.

2. A formal climate change risk assessment has not yet been undertaken, but is planned for the project.
   Required information: Describe how the risk assessment will be completed, and how the findings will be considered and integrated into the project.

3. No formal climate change risk assessment has yet been undertaken, nor is one planned for the project.
   Required information: Describe what other actions have been/will be undertaken to ensure that climate change risks are duly considered for the project.

   Applicants are required to describe provisions to address results from the assessment of climate change risks, by answering the questions found in Table 6 below.

Table 6: Provisions to address results from the assessment of climate change risks

1. Have provisions been included in project costing to account for scope changes and other modifications that result from the assessment of climate change risks? Yes No Explain:

2. Have provisions been included in the work schedule to account for scope changes and other modifications that result from the assessment of climate change risks? Yes No Explain:

3. Does the risk assessment reflect possible impacts to project scope, schedule and budget related to the assessment of climate change risks? Yes No Explain:

I.3 Greenhouse gas emissions impact

Applicants are required to undertake a greenhouse gas (GHG) emissions impact assessment of their project by completing Table 7 below. The purpose of the GHG emissions impact assessment is to determine if the project is likely to contribute to Canada’s national GHG emissions reduction target, and identify plans to include emissions mitigation measures in project design to limit an increase in emissions.

Table 7: Impact of the project on greenhouse gas emissions

1. Will the project contribute to a reduction in GHG emissions over the life of the project? Yes No   If yes, please complete question 2 below. If no, please complete question 3 below.

2. If yes, is the GHG emissions mitigation assessment consistent with the approach in Chapter 2 of the Climate Lens General Guidance Version 1.1, published by Infrastructure Canada? Yes No   If yes, please provide a description of the results of the GHG emissions mitigation assessment in the space below, and attach a copy of the completed assessment as an annex to this application. If no, please describe in as much detail as possible in the space below, how the project will contribute to reducing GHG emissions from relevant sources over its lifetime. Please include simplified calculation approaches or other relevant metrics.

3. Please identify and describe any planned emissions mitigation measures that will be part of the project, which will help to limit air emissions from the construction, operation or maintenance of the project. General examples: Adoption of lower emissions intensity technology or energy efficiency in the operations Adoption of LED lighting Increase the active transportation network Addition of carbon sinks (greening the right of way) Minimize traffic disruption during construction Reduce idling of construction equipment fleet Follow green procurement policies Use of locally sourced material Use of recycled material

I.4 Aboriginal consultations

The federal government has a legal duty to consult and, where appropriate, accommodate Indigenous groups when its conduct might adversely impact potential or established Aboriginal or Treaty rights.

Third parties, such as proponents, do not have a legal obligation to consult Aboriginal groups. The Crown may delegate to the proponent such aspects of consultation as the gathering of information about the impact of the proposed project on the potential or established Aboriginal or Treaty rights.

To assess legal duty to consult requirements for the project, the proponent should provide information about the impact of the proposed project on potential or established Aboriginal or Treaty rights. The information collected by a proponent will be used by the federal government in its decision-making process. To facilitate any Crown consultation as well as any decision-making that may arise, applicants are encouraged to submit:

• a description of completed/ongoing/planned consultation with Aboriginal groups
• a description of communications, if any, to date with Aboriginal groups
• a summary of any issues or concerns that Aboriginal groups have raised
• a description of how the applicant has addressed or proposes to address these issues or concerns

J. Declarations

J.1 Conflict of interest

Applicants must indicate any employee or major shareholder who is a former public office holder (as defined by the Parliament of Canada Act) or public officer (as defined by the Financial Administration Act). If that person left the federal government within the last 12 months, indicate whether that person was at an executive level or above.

As part of the comprehensive project proposal, applicants must provide assurance that:

• no former public servant who is not in compliance with the Values and Ethics Code for Public Servants shall derive benefits from the Contribution Agreement
• no former public office holder who is not in compliance with the Conflict of Interest and Post- Employment Code for Public Office Holders shall derive a direct benefit from the Contribution Agreement
• no member of the House of Commons of Canada shall be admitted to any share or part of the Contribution Agreement or to any benefit to arise therefrom

J.2 Applicant declaration

The comprehensive project proposal must include the following declaration, signed by a duly authorized person:

I/we, the undersigned, hereby certify that:

• all information provided to Transport Canada in support of this request for NTCF funding is true and complete
• if funding requested in this application is approved, the funds will be spent solely for the project and activities described in this application
• I/we provide consent to Transport Canada to make necessary credit and other enquiries in support of this application

 

K. Annexes

Applicants are encouraged to supplement their comprehensive project proposal by including supporting information in annexes. Annexes may include:

• expression of interest form submitted to Transport Canada, with the response from Transport Canada
• letters of support from territorial government(s), Indigenous government(s) or others
• site investigations or climate change vulnerability assessments
• climate change adaptation or mitigation solution studies
• greenhouse gas impact or emissions studies
• Aboriginal consultation documents

4. Evaluation criteria

Comprehensive project proposals will be evaluated by a cross-disciplinary review committee to assess their overall strengths and individual merits, based on the overall assessment criteria presented in Table 8 below, and the degree to which the proposed project aligns with the program objectives of the NTCF presented in Table 9 below.

Table 8: Overall assessment criteria

Selection criteria	Assessment and evaluation
The applicant’s relevant experience and capacity to complete the project and/or undertake the activities carried out in the proposal	• Assessment based on: evidence provided by applicant (mandate, expertise, labour and capital resources, partners/service providers); departmental experience with, and knowledge of, applicant and/or similar organizations • Strong proposals demonstrate a track record of successful project delivery, a clear link between their mandate and the proposed project, and that resource planning is consistent with past projects of similar scope, cost and level of risk
The relevance of the project outcome(s) to the objectives of the program and the criteria targeted in the selection process	• Assessment based on: project business case; core objectives of the NTCF; stated benefits of the completed project; anticipated useable life of the asset, improvement or product • Strong proposals will show a clear alignment between one or more of the NTCF core objectives and the expected outcome(s) of the project, and will be located on or near components of Canada’s transportation system that are important for nationally-significant freight and/or passenger flows or, for projects in Canada’s territorial North, enhancing social or economic opportunities
The quality and completeness of the business case/proposal	• Assessment based on the applicant’s budget and timelines, financial plan (including evidence of secured balance of public and private funding, as appropriate), risk management plan and performance measurement and project monitoring strategies • Strong proposals will adhere to professional standards for the preparation of business cases and demonstrate sufficient forethought and planning to deliver on-time and on-budget
The cost effectiveness of the proposal and commitment to transparency	• Assessment of: benefit-cost ratio; total cost of project relative to expected trade and transportation performance improvements; demonstrated project management experience (including reliability of estimated costs); commitment to share some project data publicly • Strong proposals will have a benefit-cost ratio greater than one, and demonstrate efforts to optimize the use of financial, labour, and other inputs to increase the productive capacity or safety of trade and transportation systems

Table 9: NTCF program objectives assessment criteria

Selection criteria	Assessment and evaluation
Address the transportation needs of Northern communities, including safety and economic development
Address the unique and urgent transportation needs in Canada's territorial North to support social development and access to new economic opportunities	• Assessment of: whether the project will improve Northern Canadians’ ability to travel between communities and domestically (e.g., for employment or education), or access essential goods and services (e.g., food, energy, health services); and whether the project supports greater connectivity and economic development of remote regions or communities in Canada's territorial North • Strong proposals will consider the future climatic and economic conditions of Canada's three territories over the long term, and propose transportation projects that provide broad-based economic and social benefits for residents. Strong proposals will also show how the proposed project will reduce cost, increase the efficiency or expand the reach of delivering core public services such as heath, justice and resupply
Enhance the safety of northern transportation infrastructure and/or operations	• Assessment of: whether the project would decrease the likelihood and/or severity of a transportation related incident; corresponding impacts of such an incident on community and/or passenger safety and health; and attendant financial or economic liabilities • Strong proposals will demonstrate the extent to which the project addresses known safety vulnerabilities in Canada's territorial North, with substantiating evidence
Increase the resilience of the Canadian transportation system to a changing climate and its adaptability to new technologies and future innovation
Increase the resilience of the Canadian transportation system to a changing climate
Improve transportation infrastructure in areas of the network where vulnerabilities to climate change and other natural hazards are high	• Assessment of: whether the project will reduce the risk of a transportation disruption, or the severity of a disruption if one occurs (e.g., due to extreme weather, seismic events, or forest fire); whether it will create redundancy by offering new route options in areas where there are vulnerabilities; and the degree to which the project will address growing operating and maintenance costs where infrastructure is affected by climate change (e.g., permafrost thaw, coastal erosion) • Strong proposals will identify vulnerabilities to climate change and other natural hazards in the transportation system, and propose infrastructure that will reduce the risk or impact of disruptions (e.g., by reducing risks to connectivity, providing reliable access to essential goods and services, helping transportation resume quickly after a disruption, etc.). Strong proposals will also demonstrate steps taken to manage climate change impact, reduce ongoing costs, and extend the life of an asset
Consider and address potential climate change impacts related to projects, at all stages of the project life-cycle (e.g., design, construction, operation and maintenance)	• Assessment of: whether the project duly considers (or plans to consider) potential climate change impacts, from design through life cycle operation; whether the schedule, budget and project risks include appropriate contingencies to account for the results of the assessment of climate change risks • Strong proposals duly consider or plan to consider potential climate change risks related to the project and its life cycle, and include, as appropriate, contingencies in the work schedule, budget and project risks to account for the results of the assessment of climate change risks
Promote sustainable transportation by reducing environmental impacts including GHG and air contaminant emissions	• Assessment of: degree to which project helps to reduce GHG emissions from transportation, consistent with the objectives of the Pan-Canadian Framework on Clean Growth and Climate Change and the project’s approach to mitigating emissions associated with the project. • Strong proposals will demonstrate a clear understanding of the cumulative net impact of the project on GHG emissions relative to the project not proceeding, quantify these impacts, and help contribute to the objectives of the Pan-Canadian Framework on Clean Growth and Climate Change
Increase the adaptability of the Canadian transportation system to new technologies and future innovation
Promote innovation in the transportation system in the territorial North	• Assessment of: the applicant’s knowledge of the proposed type of innovation, or their experience with it; the potential benefits that the innovation could provide; and whether the new approach could be used widely to have a stronger positive impact • Strong proposals will describe how innovation (e.g., use of technology, improved materials, new practices, etc.) will be used to improve the efficiency, reliability or safety of the transportation system; get more out of existing transportation assets; or extend the useful life of infrastructure
Share the results of innovation, so others can make informed evidence-based decisions	• Assessment of: whether the project is innovative; how versatile the new approach or solution is; whether the benefits and costs can be reasonably measured; the ability and willingness of the applicant to share the results; and the applicant’s expertise with the proposed and related technologies • Strong proposals will describe how quantitative results from an innovative approach or solution can be shared with a wide audience, to demonstrate how improvements can be realized in a cost-effective manner
Leverage investments from multiple partners
Demonstrate financial backing from other public or private entities	• Assessment of: the number of organizations sharing the project risks and costs; how equitably the risks and costs are shared; whether the proposed project builds on or complements investments made by other organizations • Strong proposals will describe how the risks and costs of a project are shared equally between a number of different organizations (i.e., private and/or public), and how the proposed project complements work being done by other organizations
Demonstrate support for the project	• Assessment of: evidence of support for the project within the local community, the region or from economic stakeholders; evidence of support from the territorial government, and alignment with regional priorities; commitment for on-going operation and maintenance of the infrastructure • Strong proposals will advance projects that strengthen assets with broad economic and social benefits for northern Canadians; the proposal will include letters of support (i.e., financial or in-principle) from a broad range of stakeholders; the proposal will describe a plan to operate and maintain the infrastructure, with financial backing
Support the fluidity of Canadian trade by alleviating capacity constraints and bottlenecks, and strengthen modal interconnectivity and operability
Improve the performance of the transportation system in the territorial North for trade	• Assessment of: whether a project improves transportation infrastructure (e.g., by expanding capacity, improving reliability, extending the operating season, reducing load restrictions) in the territorial North, for domestic or international trade • Strong proposals will describe supply chain investments that improve the efficiency and reliability (e.g., reduced delays) of the transportation network in the territorial North for trade. The proposal will quantify the benefit to trade, with incremental trade volume and value data. Strong proposals will propose cost-effective projects (e.g., multi-purpose corridors that create cost efficiencies by combining transportation, energy transmission, and telecommunications in the same right-of-way)
Establish new transportation links between the territorial North and domestic or international markets	• Assessment of: whether a project creates new transportation links between remote communities or isolated economic development sites in the territorial North, and domestic or international markets • Strong proposals will describe projects that connect multiple communities and development sites to markets. The project will be cost-effective (e.g., multi-purpose corridors that create cost efficiencies by combining transportation, energy transmission, and telecommunications in the same right-of-way), and will create new economic opportunities for northern Canadians
Increase the volume/value of exports from the territorial North	• Assessment of: whether a project will support increases in the volume and/or value of exports from Northern Canada (e.g., through improved access to ports or airports/aerodromes for producers and shippers) • Strong proposals will advance projects that enable new trade and investment opportunities for northern products and commodities. The proposal will quantify the increased volumes and values of exports, with supporting data

5. Where to submit a comprehensive project proposal

Please ensure that you allow sufficient time to submit your comprehensive project proposal to Transport Canada’s National Headquarters in Ottawa no later than 11:59 p.m. Eastern daylight time on Friday, March 29, 2019.

A digital version of the comprehensive project proposal may be submitted by email (recognizing the 10 MB limit) to tc.ntcf-fncc.tc@tc.gc.ca. For files larger than 10 MB, applicants may "ZIP" files and submit them as attachments. The email subject line must contain the text "TC2004". For example, "Subject: TC2004 – Comprehensive project proposal for the <name of the project> for NTCF Funding Consideration".

Comprehensive project proposals in USB or paper copy form will also be accepted and should be submitted by mail/courier service to:

Transport Canada
NTCF - CPP Submission
Transportation Infrastructure Programs (AHSF)
Place de Ville, Tower C
330 Sparks Street
Ottawa ON K1A 0N5

Annex A – Eligible recipients

NTCF contributions may be made to recipients belonging to the following categories:

• provinces and territories, including provincially and territorially owned entities
• municipalities, including local and regional governments and municipally owned entities
• Indigenous governments,^{Footnote 9} tribal councils and other forms of regional government, nationally or regionally representative Indigenous organizations, and/or Indigenous development corporations
• public sector organizations^{Footnote 10}
• federal Crown Corporations or agencies^{Footnote 11} (e.g., Parks Canada Agency, Canada Border Services Agency, Federal Bridge Corporation Limited, VIA Rail, Marine Atlantic Inc.)
• not-for-profit and for-profit private sector organizations, including those organizations headquartered outside of Canada^{Footnote 12}
• Canada Port Authorities (subject to Canada Marine Act)
• National Airports Systems Airport Authorities
• academia

Contributions to for-profit private sector organizations through the NTCF will be considered only when the benefits from the contribution accrue broadly rather than to the recipient (e.g., through trade benefit or safety improvements).

The list shown in Part 1 – Section 3.1 Eligible recipients of this guide has been abbreviated for clarity, in the context of this call focused on the Territorial North.

Annex B – Eligible and ineligible expenditures

Eligible expenditures

Contributions will be made towards eligible expenditures directly related to eligible projects that, in the opinion of the Minister of Transport or his delegated representative, are reasonable, required to achieve the objectives and outcomes of the NTCF program, and have been incurred on or after the signing of a Contribution Agreement, including, but not restricted to, the following:

• expenditures related to preparation (for example, site preparation), construction, rehabilitation and improvement of assets
• professional fees for contracted services*
• costs of engineering and environmental reviews, including environmental assessments, follow-up programs, and the cost of remedial activities, mitigation measures and follow-up identified in any environmental assessment*
• costs of environmental consultations*
• expenditures for Aboriginal consultations, specifically project-related consultation activities pursuant to the Crown’s legal duty to consult*
• expenditures related to public outreach and Indigenous engagement, dissemination of information, communications materials and other associated costs*
• staff salaries and benefits such as wages; employer’s portion of: Employment Insurance, Canada Pension Plan/Quebec Pension Plan, and disability insurance; private insurance; and benefits paid to staff working on the project/activities where the recipient can demonstrate value for money
• expenditures related to telecommunication, data analysis, and data validation services
• purchase or lease of technologies, equipment, software, data and systems
• licenses and permits
• training costs related to new technologies, equipment, software and systems
• travel expenditures (including the cost of accommodations, vehicle rental and kilometric rates, bus, train, airplane or taxi fare, allowances for meals and incidentals in accordance with established policies and directives)*
• administrative expenditures (including expenditures for general administration, rent, insurance and office equipment rental)*
• rental of meeting rooms and audio/video equipment*
• hospitality^{Footnote 13}, in accordance with federal government policies and directives*
• honoraria payments for Indigenous persons
• for projects administered as a P3, expenditures for the development of a P3 business case and other costs related to the delivery of a project through a P3

  For capital infrastructure projects, no more than 15% of NTCF funding will be provided for expenditures identified with an asterisk (*).

Where Transport Canada’s contribution is less than 100% of the total eligible expenditures, the above eligible expenditures may include those associated with in-kind contributions. In-kind contributions may take the form of:

• goods, services or assets consumed by the recipient for which costs are incurred and no cash is exchanged
• donations of goods, services or assets to the recipient for which no costs are incurred and no cash is exchanged

Donations are not eligible for reimbursement but may form part of the recipient’s share of the total eligible expenditures for the project/activities.

Ineligible expenditures

Certain costs are not eligible for funding; therefore, applicants must not include them in the calculation of the total eligible costs of the proposed project. These ineligible expenditures include, but are not limited to:

• costs incurred before the signing of the Contribution Agreement and after the project completion date with the exception of expenditures related to audit and evaluation requirements pursuant to the agreement
• expenditures related to purchasing land, buildings and associated real estate and other fees, financing charges and interest payments on loans
• expenditures related to leasing land, buildings, and other facilities except for equipment directly relating to the construction of the project
• legal fees
• expenditures related to developing a business case or proposal for funding
• taxes for which the recipient or a third party is eligible for a tax rebate and all other costs eligible for rebates
• general repairs and maintenance of a project work and related structures, unless they are part of a larger capital expansion project
• services or works normally provided by the applicant (e.g., employee wages, benefits, overhead costs or any other direct or indirect operating, maintenance or administrative costs) incurred in the course of implementation of the project except those specified as eligible costs
• expenditures related to any goods and services which are received through donations or in-kind

Annex C – Contribution agreement

Contributions under the NTCF are subject to performance conditions specified in a contribution agreement. To receive federal NTCF funding, a contribution agreement must be signed by both the recipient and Transport Canada. The agreement will state the terms and conditions under which the Government of Canada will provide funding for the project.

Project scope

The applicant’s comprehensive project proposal will form the foundation to define the project scope, mandatory legal documentation, clauses, terms and conditions, performance measurements and payment structure in the formal contribution agreement.

It is very important to clearly define the scope of the project in the application because the recipient will be responsible for:

• completing the project according to the defined scope within the timelines in the application
• covering any cost overruns above the budget identified in the application
• covering all costs associated with work performed outside the approved scope of a project

Failure to complete the project scope will result in a corresponding reduction of the federal contribution.

Reporting requirements

Each contribution agreement will set out reporting requirements, including progress reports and a final report.

• Progress Reports: Transport Canada may require recipients to submit progress reports describing the progress achieved at specific intervals.
• Final Report: When the project is complete, recipients must submit a final claim for reimbursement along with a final report. The final report serves as a verification of all project activities, costs and outcomes. Under the funding agreement, Transport Canada must receive the final report before it pays the final claim for reimbursement.

Contract provisions

The contribution agreement will require the recipient to satisfy the Government of Canada with respect to having a competitive and transparent tendering process for the project and to comply with the Canadian Free Trade Agreement.

Intellectual property

While any intellectual property resulting from the work will remain with the recipient, by submitting a comprehensive project proposal, the applicant agrees that Transport Canada may:

• summarize and publish information about findings that are not commercially sensitive, on its website and/or in hard-copy form, as information for the transportation sector and as guidance for future activities in the transportation sector
• use all information and material developed under the terms of the contribution agreement, except for commercially sensitive information and findings, during and after the term of the agreement
• share the applicant’s submissions with other Government of Canada departments and agencies, and the Canada Infrastructure Bank, for information purposes only

Communications protocol

The contribution agreement may include a communications protocol. This outlines requirements for joint communications activities, such as:

• public information products
• news releases
• public announcements
• other joint events
• official languages

Performance reporting

Transport Canada must be provided with meaningful performance data that demonstrates the impact and results of the project. The contribution agreement will include requirements for the recipients to collect data to assess progress against the desired outcomes. Performance results should be provided as data and not as a summary of information.

Download the PDF applicant’s guide