FIPN COMPLEMENTARY DETAILS FONDS D INITIATIVES DU PLAN NORD (FIPN)

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Primrose Willis
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1 FIPN COMPLEMENTARY DETAILS FONDS D INITIATIVES DU PLAN NORD (FIPN) Next call for projects: September 2017

2 FONDS D INITIATIVES DU PLAN NORD (FIPN) Objectives The FIPN supports and promotes projects that: generate economic activity and also create and maintain jobs in the area covered by the Plan Nord; assist development and wellbeing in communities in the North; target protection for the environment and the conservation of biodiversity Complementarity with existing programs The FIPN is intended to complement the contributions from communities and other existing programs and is intended to support projects that cannot attract sufficient financial assistance under existing programs. The applicant must show that other funding applications have been made. Area covered by the FIPN The program applies to projects or initiatives implemented in or of benefit to the area covered by the Plan Nord, which is the whole of Québec lying north of the 49th parallel, and north of the St. Lawrence River and Gulf. Eligible client groups The client groups eligible for funding from the FIPN are: Non-profit, incorporated organizations; Cooperatives and mutual associations whose activities are similar to those of a nonprofit organization (excluding the following sectors: financial services, insurance, retail sales, health care); Band councils in Aboriginal communities; Northern village corporations; Municipalities, regional county municipalities and municipal organizations. Enterprises legally constituted in Québec or Canada and working in the following sectors of activity: o Innovation and/or infrastructures for use in mineral exploration and extraction o Renewable energy production o Innovation and/or infrastructures for use in forestry and the diversification of forestry operations o Tourism o Agrifood o Transport o The digital economy

3 The following are not eligible: Provincial or federal government departments; Provincial or federal state-owned corporations; Enterprises in the retail sector; Enterprises not working in the target sectors of activity for eligible enterprises. Eligible projects To be eligible, projects must share the vision of the Plan Nord, and must therefore focus on one of the following aims: Develop the diversified economic potential of northern Quebec in a responsible way and for the benefit of the local population living there and Quebec as a whole; Support the development of communities in the area covered by the Plan Nord by helping them realize their full potential and enhance their living conditions; Protect the environment and preserve the distinctive biodiversity of Northern Québec. To be eligible, projects must be in one of the following categories: Projects to conduct research and disseminate knowledge about the area covered by the Plan Nord; Economic diversification projects; Studies, whether economic, sociological or environmental; Workforce education and training projects; Social or community infrastructures; Environmental remediation; Services to the population; Events organization: seminars, fairs, conventions, conferences and networking activities.

4 Enterprises legally constituted in Québec or Canada and working in the targeted sectors of activity must, to be eligible, present a project in one of the following categories: Strategic, multi-user infrastructures and equipment in the economic field 1 ; Studies: research projects with strong potential benefits, and pre-feasibility or feasibility studies for projects or sectors. The intervention may apply at a preliminary stage, for the incubation of the idea, and must include a demonstration by the promoter that the results of a study or project will be developed. When a project is in an area under the responsibility of a government department or body, a notice of relevance is systematically requested from the department or organization concerned by the SPN analysts. Ineligible projects Recurrent projects, individual projects (where the promoter is not registered as an organization or enterprise), projects that are inconsistent with government policy, projects that have previously received funding from the FIPN and projects that have already begun or have been completed before the application is filed with the FIPN are ineligible. The SPN reserves the right to reject any application that does not meet the criteria and conditions defined in the normative framework for the FIPN. Eligible costs and expenditure Eligible expenditure is, in general, the costs or expenditure directly linked to the completion of the project, including: Necessary operating expenses for the project, including wages and other remuneration, temporary rent, and the purchase or leasing of apparatus and equipment; Costs for plans and studies. When the project includes the payment of professional fees, the promoter must present at least two professional service offers (bids). This requirement will become compulsory for the 3rd call for projects in September 2017; Professional fees; Travel and accommodation expenses; Expenses for the organization of an event; Capital expenditure; Training and skills upgrading costs. 1 Infrastructures or equipment that can be used by more than one user to promote activities that generate economic benefits (revenue, jobs) for users and for the region. In this context, "user" means an entity that makes a financial contribution to the project (for example, an equal-share co-owner) and is a direct user of the infrastructure or equipment. Clients, lessors, funders and institutional partners are not considered to be users.

5 Ineligible costs and expenditure Representation costs, donations, sponsorship; Expenditure on the purchase of a motor vehicle that can be licensed; Expenditure to meet legislative and regulatory requirements; Expenditure on a completed project; Expenditure made before the date on which the project was submitted; Eligible expenditure that may be reimbursed in another way; Expenditure connected with a project that is inconsistent with established government policies or the laws and regulations in force; The payment of an organization's or enterprise's debt or the repayment of an accumulated deficit; Recurrent expenditure; Working capital. Financing available and financing limit The financial commitments for the three calls for projects for will be limited to the amount of the dedicated budget envelope of $3,000,000, subject to the availability of annual appropriations. The maximum financial assistance for a single project is $100,000, except for a project in the Strategic, multi-user infrastructures and equipment in the economic field category, or a project in the Social or community infrastructures category, where the maximum authorized financial assistance is $250,000. For projects of a public nature: o The cumulative total of government assistance cannot exceed 90% of eligible project costs; o A cash contribution of at least 10% of the eligible project costs is required from the applicant or community. For projects of a private nature (enterprise): o o The cumulative total of government assistance cannot exceed 50% of eligible project costs; A cash contribution of 50% of the eligible project costs is required from private enterprises from the applicant or the community.

6 Calculation of financial assistance The maximum amount of financial assistance, provided in the form of a non-refundable grant, is determined taking into account the total obtained from all sources of government assistance (grants, tax credits, loans, loan guarantees, equity participation etc.) for the project. The calculation also takes into account the amount received by government departments and bodies having financial assistance agreements with the Société du Plan Nord. The financial assistance may come from departments and bodies of the Government of Québec or the Government of Canada and from partners having access to intervention funds mainly from government sources. Selection criteria Eligible projects will be assessed by a selection committee using an assessment grid. All the criteria and sub-criteria listed below will be applied to all projects. Besides the relevance, quality and competitive aspects of each project, its economic, social and environmental aspects will also be assessed: Economic criteria Does the project: o promote the responsible development of natural resources in the North? o structure the local and regional economy? o generate economic benefits for northern communities? o promote job creation and/or retention? o lead to the development of a key sector of activities for the community? o promote local and regional economic diversification? o lead to the development of an economic sector? Social criteria Does the project: o improve living conditions in northern communities? o meet a community or local need? o receive support from the local or regional political authorities? o promote full participation by women and the inclusion of young people and new arrivals? o seem likely to trigger cooperation from stakeholders or suppliers in the community or area concerned, if not initiated by the local or regional community? o generate momentum with other stakeholders to perform an action that would not be completed otherwise? o highlight the diversity of cultures and attractions in the area covered by the Plan Nord? o help local and Aboriginal communities to plan and structure their development? o promote the establishment of programs to train and retain workers in the North? o promote the establishment of programs to support schooling in northern communities? o help local authorities gather more knowledge and skills?

7 Environmental criteria Does the project: o encourage better environmental practices? o promote the optimum use of resources? o promote better environmental outcomes for the activities of communities and enterprises? o comply with government guidelines for the protection of the environment and the conservation of biodiversity? Other criteria Does the project: o demonstrate a formal approach to sustainable development? o promote the gathering and dissemination of knowledge connected with the Plan Nord? o seem to be based on support in the communities concerned? o promote the pooling of resources? o rely on financing that is complementary to the contributions from the community and other existing financing programs? o show the ability of the promoter to complete the project? o show the ability of the promoter to invest in the project? o highlight its originality and concept (innovation)? o demonstrate long-term viability and profitability and, where applicable, the revenue generated?

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