FONDS D INITIATIVES DU PLAN NORD (FIPN)

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GUIDE FOR PROMOTERS Non-profit, incorporated organizations Cooperatives and mutual associations* Band councils in Aboriginal communities Northern village corporations Municipalities, regional county municipalities and municipal organizations FONDS D INITIATIVES DU PLAN NORD (FIPN) 2 nd call for projects 2018-2019 Deadline for submitting a project: September 13, 2018

TABLE OF CONTENTS 1. BACKGROUND... 4 2. FONDS D INITIATIVES DU PLAN NORD (FIPN)... 4 2.1 Objectives... 4 2.2 Call for projects... 4 2.3 Eligibility criteria... 5 2.3.1 Complementarity with existing programs... 5 2.3.2 Area covered by the FIPN... 5 2.3.3 Eligible client groups... 5 2.3.4 Eligible projects... 6 2.3.5 Ineligible projects... 6 2.3.6 Eligible costs and expenditure... 7 2.3.7 Ineligible costs and expenditure:... 7 2.4 Financing available and financing limit... 8 3. PROJECT SELECTION PROCESS... 8 3.1 Preliminary analysis... 8 3.2 Selection criteria... 9 4. PRESENTATION AND SUBMISSION OF PROJECTS... 10 4.1 Form... 10 4.2 Submission of projects... 10 4.3 Deadline for the submission of applications for financial assistance... 11 4.4 Timeline for the call for projects... 11 5. TERMS AND CONDITIONS... 11

Note : This guide for promoters is for publics organizations. For the Fonds d initiatives du Plan Nord guideline for private enterprises, please refer the Guide for promoters private enterprises. For any questions concerning the call for projects, please contact the SPN staff members at the office nearest your community: Baie-Comeau Office Mr. Ken Gagnon Phone: 418 589-7281 Toll-free: 1 855 214-9807 E-mail: ken.gagnon@spn.gouv.qc.ca Chibougamau Office Ms. Julie Simone Hébert Phone: 418 748 2817 Toll-free: 1 855 214-9807 E-mail: juliesimone.hebert@spn.gouv.qc.ca Roberval Office Ms. Julie Tremblay Phone : 418 765-0163 Toll-free : 1 855 214-9807 E-mail: julie.tremblay@spn.gouv.qc.ca Sept-Îles Office Ms. Marie-Claude Gauthier Phone: 418 960-1805, extension 8402 Toll-free: 1 855 214-9807 E-mail: marie-claude.gauthier@spn.gouv.qc.ca Nunavik Office Ms. Julie Tremblay Phone : 418 765-0163 Toll-free : 1 855 214-9807 E-mail: julie.tremblay@spn.gouv.qc.ca 3

1. BACKGROUND The goal of The Plan Nord Toward 2035, 2015-2020 Action Plan is to provide for the development of the full range of potential existing north of the 49 th parallel for the benefit of the local population and the whole of Québec, through an exemplary form of sustainable development based on a comprehensive, integrated, consistent and responsible approach. The 2015-2020 Action Plan provides a framework for operations under the Plan Nord, setting out 90 priority actions to be implemented by 21 government departments and bodies. It sets out three key strategic policy directions: Develop the diversified economic potential of northern Québec. Support the development of all communities in the area covered by the Plan Nord. Protect the environment and preserve biodiversity. The Société du Plan Nord (SPN) is the key authority for the deployment of the various components of The Plan Nord Toward 2035, 2015-2020 Action Plan. Its mission is to contribute to the integrated and coherent development of the area covered by the Plan Nord, in compliance with the policy directions concerning the Plan Nord and in keeping with the principles of sustainable development. To complement the actions undertaken by government departments and bodies, the Fonds d initiatives du Plan Nord (FIPN) has been created to support the implementation of projects of interest to northern communities that are consistent with the Plan Nord process. For more information on the SPN and the document The Plan Nord Toward 2035, 2015-2020 Action Plan, visit our website: www.plannord.gouv.qc.ca. 2. FONDS D INITIATIVES DU PLAN NORD (FIPN) 2.1 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. 2.2 Call for projects The SPN invites all organizations eligible for funding from the FIPN to present a project as part of the second call for projects for the financial year 2018-2019, by the deadline of 11:59 p.m. on September 13, 2018. 4

Two calls for projects will be made, for the financial year 2018-2019, in : February 2018 August 2018 2.3 Eligibility criteria 2.3.1 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 and that it does not have the financial capacity to implement the project itself without financial assistance from the SPN. 2.3.2 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 49 th parallel, and north of the St. Lawrence River and Gulf. 2.3.3 Eligible client groups The client groups eligible for funding from the FIPN are: Non-profit, incorporated organizations; Cooperatives and mutual associations (excluding the following sectors: financial services, insurance, health care and retail sales, except in the latter case if the assistance will help maintain the last remaining local outlet that is essential for the community); Band councils in Aboriginal communities; Northern village corporations; Municipalities, regional county municipalities and municipal organizations. The following are not eligible: Provincial or federal government departments; Provincial or federal state-owned corporations. 5

2.3.4 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. Section 3.2 of this Guide sets out the criteria that will be used to assess projects. 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, with the exception of studies eligible for the SPN's program to develop community greenhouses; Workforce education and training projects; Community infrastructures; 1 Environmental remediation; Services to the population; Seminars, fairs, conventions, conferences and networking activities. 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. 2.3.5 Ineligible projects Festivals and events (other than seminars, fairs, conventions, conferences and networking activities); Recurrent projects; Individual projects (where the promoter is not registered as an organization); Projects that are inconsistent with government policy; Projects that have previously received funding from the FIPN; 1 Eligible community infrastructures: infrastructures used to offer activities (generally not provided by a public network) to the residents of a community to mobilize them around shared objectives or projects. Most of the time, a significantly broad section of the population can use the infrastructures. Examples include: recreational and sports facilities, a tourism or recreation visitor center, administrative community and social centers, non-residential facilities, recreational and community parks, playgrounds, hiking trails, cultural and communications-related facilities used for community purposes, heritage property development, youth centers. 6

P rojects 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. 2.3.6 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 SPN can ask the promoter to submit at least two professional service offers (bids); Professional fees; Travel and accommodation expenses; Expenses for the organization of an event; Capital expenditure; Training and skills upgrading costs. 2.3.7 Ineligible costs and expenditure: Expenditure incurred before the date of filing of an application for financial assistance from the Société du Plan Nord; Representation costs, donations, sponsorship; Expenditure on any form of renovation or improvement connected with the routine or defective maintenance of an existing building or infrastructure (for example, roofs, doors and windows, cladding, landscaping, etc.), except if the expenditure will maintain an essential service in the community; 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 (for example: a tax refund); 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. 7

2.4 Financing available and financing limit The financial commitments for the t w o calls for projects for 2018-2019 will be limited to the amount of the dedicated budget envelope of $3,000,000, subject to the availability of annual appropriations. For a project of Social or community infrastructures category, the maximum authorized financial assistance is $250,000; For any other admissible projects, the maximum authorized financial assistance is $100 000 ; The cumulative total of government assistance cannot exceed 90 % of eligible project costs; A cash contribution of at least 10 % of the eligible project costs is required from the applicant or community. 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. 3. PROJECT SELECTION PROCESS 3.1 Preliminary analysis All projects received will be subject to a preliminary analysis of the eligibility criteria for both the applicant and the project. The following criteria must be met: The project will be implemented in the area covered by the Plan Nord or benefit the area covered by the Plan Nord; The project was submitted before the deadline; The required documents were included: Application form for financial assistance, signed Copy of the applicant organization's last financial statement The promoter is eligible; The project is eligible in an authorized category/sector; The project respects the limit on the financial assistance that may be authorized by the FIPN; 8

The project respects the rules on cumulative government assistance authorized by the FIPN; A cash contribution of at least 10 % of the eligible project costs is included by the applicant or community for a public project; A cash contribution of at least 50 % of the eligible project costs is included by the applicant or community for a private project; All the compulsory sections of the application form have been completed; The promoter has provided official proof of the approaches made to other funding providers and the complementary nature of the funding requested under the FIPN program, in the form of E-mails, receipts, letters of refusal, etc. Projects that do not meet all these compulsory criteria will be considered ineligible at the preliminary analysis stage. 3.2 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: Promote the responsible development of natural resources in the North? Structure the local and regional economy? Generate economic benefits for northern communities? Promote job creation and/or retention? Lead to the development of a key sector of activities for the community? Promote local and regional economic diversification? Lead to the development of an economic sector? Social criteria Does the project: Improve living conditions in northern communities? Meet a community or local need? Receive support from the local or regional political authorities? Promote full participation by women and the inclusion of young people and new arrivals? Seem likely to trigger cooperation from stakeholders or suppliers in the community or area concerned, if not initiated by the local or regional community? Generate momentum with other stakeholders to perform an action that would not be completed otherwise? Highlight the diversity of cultures and attractions in the area covered by the Plan Nord? Help local and Aboriginal communities to plan and structure their development? Promote the establishment of programs to train and retain workers in the North? Promote the establishment of programs to support schooling in northern communities? 9

Help local authorities gather more knowledge and skills? Environmental criteria Does the project: Encourage better environmental practices? Promote the optimum use of resources? Promote better environmental outcomes for the activities of communities and enterprises? Comply with government guidelines for the protection of the environment and the conservation of biodiversity? Other criteria Does the project: Demonstrate a formal approach to sustainable development? Promote the gathering and dissemination of knowledge connected with the Plan Nord? Seem to be based on support in the communities concerned? Promote the pooling of resources? Rely on financing that is complementary to the contributions from the community and other existing financing programs? Show the ability of the promoter to complete the project? Show the ability of the promoter to invest in the project? Highlight its originality and concept (innovation)? Demonstrate long-term viability and profitability and, where applicable, the revenue generated? 4. PRESENTATION AND SUBMISSION OF PROJECTS 4.1 Form Promoters must complete, sign and date the application form for financial assistance. The form is available on the SPN website under the "financial assistance" tab. 4.2 Submission of projects When submitting a project to the SPN, the following documents must be included: Application form for financial assistance, completed, signed and dated; Copy of the applicant organization's last financial statement; Letters of support from project partners (if applicable); Any other document considered useful in assessing the project. 10

The application may be submitted either: by e-mail to: fipn@spn.gouv.qc.ca by fax to: 418 643-3660 or by mail* to: Fonds d initiatives du Plan Nord Société du Plan Nord 900, boulevard René-Lévesque Est, bureau 720 Québec (Québec) G1R 2B5 * If the application for financial assistance is submitted by mail, the postmark will count as the date of submission. 4.3 Deadline for the submission of applications for financial assistance The deadline for the submission of projects for this call for projects is 11:59 p.m. on September 13, 2018. 4.4 Timeline for the call for projects Activity Launch of the call for projects August 13, 2018 Receipt of projects September 13, 2018 Date Response to promoters From November 30, 2018 5. TERMS AND CONDITIONS A financial assistance agreement between the SPN and the promoter will be drawn up for each project selected. The agreement will specify the terms and conditions of payment, the conditions for the granting of financial assistance, as well as the accountability requirements. At the end of the project, a final report on the project and the use of the grant must be filed within the deadline set in the financial assistance agreement. The report must contain, in particular, A detailed description of the project and the activities completed using the grant; The total cost of the project and of each activity completed; The sources of financing and the amounts obtained from each source; The number of jobs created, if applicable; An appendix containing the supporting documents for project expenditure if not yet submitted or a financial report setting out the expenditure. 11