The Targeted Investment Program (TIP) is part of a suite of northern economic development programs now being offered by Indian and Northern Affairs Canada under the umbrella framework Strategic Investments in Northern Economic Development. Other programs currently in this suite are the Innovation and Knowledge Fund and the Northwest Territories' Partnership and Advisory Forums.

What are the expected economic development outcomes for the Targeted Investment Program?

TIP's key expected regional economic development outcomes are:

• expanded, publicly accessible knowledge and economic infrastructure;
• expanded business and employment opportunities for Northerners;
• increased diversification of the territorial economies; and
• increased economic self-reliance.

TIP's program principles include:

• initiatives will not overlap or duplicate existing programs;
• cost sharing and leveraging will be promoted;
• unique regional challenges and opportunities will be recognized and accommodated;
• investments will provide continuing benefits to the territorial and Canadian economies;
• investments will favour initiatives that demonstrate potential for meaningful long-term outcomes;
• investments will avoid market disruptions;
• investments will not place ongoing pressure on the federal fiscal envelope; and
• particular attention will be given to the program's ability to address opportunities that benefit northern women, Aboriginal people, and minority language communities, and will be mindful of federal objectives with respect to youth and persons with disabilities.

TIP's investments will focus on four thematic areas:

1. Building the Knowledge Base in key economic sectors or areas of activity that will help set the stage for further economic opportunities and investments;
   
   
2. Enhancing the Economic Infrastructure Base by supporting the planning and development of multi-user physical infrastructure critical to economic growth;
   
   
3. Capacity Development of organizations, associations, small and medium sized enterprises (SMEs) including social enterprises and individuals so that they can take advantage of economic opportunities; and
   
   
4. Economic Diversification within regions and sectors with a focus on the development of new sectors, products and markets.

1. Projects must align with the investment plan in the territory in which the project takes place. To see investment plans, please click on the following links:
   
   
   • Investment Plan for Yukon
   • Investment Plan for NWT
   • Investment Plan for Nunavut
     
2. Projects must be eligible under one of the four key themes:
   
   
   • Building the Knowledge Base
   • Enhancing the Economic Infrastructure Base
   • Capacity Development
   • Economic Diversification

Across all four theme areas, the maximum amount payable in any given year to a single project shall not exceed $2,000,000. In the case of pan-territorial projects (involving two or three territories), the maximum amount payable in any year will not exceed $2,000,000 per territory.

In the case of economic infrastructure, the following additional conditions apply:

• Capital investments in new or existing infrastructure which is either owned or operated by a single commercial enterprise which is for public use/multi-user access, will have a maximum amount payable per project of $400,000 and will be subject to conditional repayment;
  
  
• The maximum amount payable to a project (regardless of years) will be $2,000,000 except in exceptional circumstances where governments have agreed to a larger funding amount through the Investment Plan for Yukon.

As a general rule, contributions shall be negotiated to be the least amount required to allow a proposal to proceed. However, because the Targeted Investment Program is also aimed at strengthening economic foundations and filling gaps, INAC can provide assistance of up to 100% of total eligible costs for non-commercial projects and up to 75% of total eligible costs for commercial private sector projects. If another federal department is a funding partner, stacking limits of that project will need to be respected by INAC.

Organizations or associations, including social enterprises, whose mandate includes work with respect to northern economic development; individuals; small and medium sized enterprises; other levels of government; and other non-federal entities, public or private that have an interest/involvement in economic development in the North.

Are there ineligible projects?

If a project does not align with the Investment Plan for the territory in which the project is to take place, then it will be deemed ineligible. In all three territories the following projects are ineligible:

• research or knowledge–based activities that are primarily a resource management function;
• major capital investments in infrastructure such as laboratories linked to expanding the knowledge base;
• core funding and ongoing O&M of organizations;
• construction activity (as opposed to planning activity) related to large engineering works such as roads, highways, bridges, airports, rail roads, ports, wharfs, dams, commercial buildings and other similar infrastructure;
• investments in new or existing infrastructure which is either owned or operated by a single for–profit enterprise that is not for public use; and
• direct skills training for individuals of the sort normally offered through learning institutions or apprenticeship programs.

• core funding and ongoing O&M; and
• wage subsidies for persons receiving training through course work or on the job.

What are the eligible expenditures?

All expenditures that are, in the opinion of INAC, reasonably needed to carry out approved activities, including, but are not limited to:

• professional fees such as technical, environmental, legal and business;
• salaries and benefits for employees and casual workers;
• contract costs for administrative services or professional services;
• honoraria;
• space and equipment rentals or purchases;
• project feasibility studies;
• technical analysis
• research fees such as surveys, data acquisition and research studies;
• loan Fund top ups (such as those provided by Community Futures like entities or Capital Corporations);
• minor / major capital; and
• travel, including meals and accommodations, and shipping costs.

Contributions to for-profit applicants will be subject to repayability based on the commercial success of a project.

The project proposal process is based on the investment plans. Projects are approved by the Minister. A package containing guidelines for proposal development is available from INAC regional offices.

INAC, Northwest Territories Region
4920-52nd Street
PO Box 2760
Yellowknife, NWT
X1A 2R3
Tel: Toll Free:
1-866-669-2620 or 867-669-2627
Fax: 867-669-2711