Community infrastructure

The objectives of this component are to:

  • renovate and upgrade community infrastructures to increase the wellbeing and living conditions of Indigenous populations,
  • support the social and community development of Indigenous people, and
  • foster the development of Indigenous community action organizations and non-profit organizations in communities.

General conditions

To be eligible for this component, a community must:

  • have signed a special agreement with the Minister Responsible for Indigenous Affairs in which it undertakes to submit community infrastructure projects, and
  • not have received a total of more than $1 million as financial assistance for this component:
    • Communities that have not used all the funding provided for under programs prior to IIF IV may be authorized to commit an additional amount that matches the remaining balance during the life of this program.

Subject to the assessment criteria and the criteria for this component, a project must:

  • allow the objectives of the component to be achieved,
  • be submitted to the SAA by a nation, community or eligible organization no later than March 1, 2027, and
  • be submitted with a band council resolution.

Eligible projects

All projects must meet the following criteria:

  • The project must be considered to be a priority that is justified and conducive to the wellbeing of the Indigenous population.
  • The financial capacity of the nation, community or eligible organization to pay the operating and maintance costs, if any, must be demonstrated.

To be eligible, a community infrastructure project must be prioritized by way of a resolution of the nation or community.

  • Projects that meet the criteria of the Economic Development component are eligible for funding under the Community Infrastructure component if the Economic Development budget has been entirely spent.

Eligible infrastructures

Projects in the social services, recreation, sports, culture, communication, tourism, and information technology sectors are admissible. The following infrastructures and facilities are therefor eligible:

  • daycare centres,
  • recreation and sports facilities,
  • tourist information, recreation, fitness, community and administrative centres,
  • non-residential developments (such as earthworks, recreation and community parks, playgrounds, hiking trails, beaches, sanitary landfills, camp sites, and riverbank stabilization projects),
  • cultural and communications facilities for community use,
  • heritage sites,
  • youth centres,
  • family centres,
  • halfway houses and temporary accommodation,
  • community freezers, and
  • community spaces.

Ineligible infrastructures

This component cannot be used to fund projects
on reserves in sectors that are clearly the responsibility, of the federal government, such as:

  • equipment for collecting, purifying, storing, and distributing potable water, including water for fire protection, • wastewater and rainwater drainage and inspection equipment,
  • roads, streets, sidewalks, bridges, viaducts, tunnels, retaining walls, and sound abatement walls,
  • schools,
  • hospitals,
  • airports and docks,
  • penitentiaries, police stations, fire stations, and prisons, and
  • public security and justice facilities (places where justice is applied).

Studies

This category mainly concerns the completion of studies required to develop a project eligible under this component. A study may, for example, assess the technical and financial feasibility of an eligible project.

The amount allocated to the Studies category cannot exceed a total of $100,000 per community for the duration of the program.

Submitting applications

The promoter must demonstrate its financial need and submit an application for funding to the SAA that includes the following information:

  • The amount requested
  • The justification for the financial need, and the relevance of the budget envelope to the project’s implementation
  • The location of the project
  • A breakdown of project expenditure and funding, including details of other expected sources of funding
  • The beneficial effects of the project
  • The steps taken to check the project’s eligibility for other funding programs
  • The estimated operating budget for a three-year period
  • A band council resolution

Eligible and ineligible costs

All project costs are eligible, including capital expenditures, as defined by generally accepted accounting principles, and all the costs incurred in completing the project. Eligible expenditures include:

  • costs connected to service contracts for the performance of eligible work,
  • incidental costs, including fees, and temporary financing,
  • costs for the purchase of community equipment needed for the project, and
  • IT costs, such as computer equipment, software and software packages, and related training.

For study projects, all costs are eligible. Project management costs are eligible provided that the nation, community or organization hires additional staff to perform the work.

Land purchase costs and normal infrastructure maintenance costs are not eligible.

Construction work

To be eligible for funding, work must relate to:

  • the renovation, rebuilding, reconstruction or replacement of existing community infrastructures, or
  • an enlargement, or the construction of new infrastructures.

Special condition for an infrastructure located outside the Indigenous community

To be eligible for construction work of $100,000 and more on an infrastructure located outside the Indigenous community, an eligible organization must meet at least one of the following conditions:

  • Hold title as the owner of the infrastructure concerned
  • Be in the process of purchasing the infrastructure, as demonstrated by a formal written undertaking
  • Hold or be in the process of obtaining a lease or emphyteutic lease that is or will be in force for at least five years after construction is complete.

Requirement to seek bids

For an eligible project that requires construction work costing $100,000 or more, the eligible organization does not need to issue a public call for tenders to award the contract as provided for in the Act respecting contracting by public bodies.

However, the eligible organization must meet the following minimum requirements for awarding a construction contract of more than $100,000 but less than $1 million:

  • Issue an open call for tenders with a public announcement
  • Issue an invitation-only call for tenders to at least three qualified contractors.

For construction work over $1 million, the eligible organization must, at a minimum, issue an open call for tenders with a public announcement. These types of calls for tenders are usually posted in newspapers, displayed in the local offices of construction associations, and/or announced via a public electronic service. They must allow all qualified and interested contractors to bid on the contract. The announcements or public notices must be distributed widely enough to reach a suitable number of qualified and interested contractors, resulting in a competitive bidding process.

For all forms of competitive tendering for a contract to perform construction work, whether announced publicly or by invitation only,

  • the deadline for receiving bids must not be less than fifteen days, and
  • bids can only be requested and contracts awarded:
    • at a fixed price, or
    • based on a unit price.

Financial assistance cannot be used to make a payment to any entity that:

  • is named in the Register of enterprises ineligible for public contracts, or
  • has, in the two years preceding the application for financial assistance, failed to meet its obligations after being put on notice to do so in connection with financial assistance previously granted by a department or funding body of the Government of Québec

Financial assistance

The assistance granted to a nation, community or organization by the Government of Québec cannot exceed 50% of the total cost of all eligible work and purchases, and the combined total of financial assistance received from various levels of government cannot, except in certain circumstances, exceed 100% of eligible costs.

Project assessment criteria

Each project presented must have a significant impact on the socio-economic situation of the Indigenous nation or community and meets the stated needs and priorities. A project is deemed to have a significant impact if:

  • it is considered a priority, useful to and of interest for the community or nation,
  • the financial capacity of the nation, community or eligible organization to pay the operating and upkeep costs, if any, has been demonstrated,
  • it is justified (deterioration, obsolescence, insufficient capacity for the current population, work needed to meet standards and regulations, etc.), and
  • the project is realistic in terms of technical feasibility and the completion schedule.

Reporting and accountability

Funding of $25,000 or less may be formalized in an acceptance letter setting out the reasons for the grant and the applicant’s obligations.

Funding of more than $25,000 will be formalized in an agreement which must contain:

  • the obligations of each signatory,
  • a detailed description of the project and its objectives, and
  • indicators for management purposes and the production of reports.

In general, the project must be completed within two years after the financial agreement is signed.

An organization that receives a grant of more than $25,000 must, as a minimum, provide a report in compliance with the provisions of the financial agreement.

The report must include:

  • a project completion certificate to show that the work specified in the agreement is compliant and complete, approved by a resolution issued by the band council or, in the case of a community action organization, the board of directors, and
  • a financial report including an income and expenditure statement for the project, approved by a resolution issued by the band council, northern village, or the board of directors of a community action organization.

The organization must, at all times, keep separate accounts for project expenditures, in accordance with generally accepted accounting principles.

Payment of financial assistance

Funding of $25,000 or less may be paid in full once the acceptance letter has been sent.

Funding of more than $25,000, but less than $100,000, will be paid in a minimum of two instalments, the first of which may not exceed 80% of the full amount. In all cases, the last instalment provided for in a financial agreement will only be paid once all reports have been filed with the SAA.

Funding of more than $100,000 will be paid in one of three ways:

  • The funding will be split into at least two instalments, the first of which may not exceed 80% of the full amount. In all cases, the last instalment provided for in a financial agreement will only be paid once all reports have been filed with the SAA.
  • The funding will be used to repay a loan from a financial institution, in a single payment. The SAA will, where applicable, repay the principal, interest and fees for a loan made to the organization by the financial institution of its choice.
  • The funding will be used to repay a loan from a financial institution, in the form of debt servicing. The SAA will, where applicable, repay the principal, interests and fees for a loan made to the organization by the financial institution of its choice.

Where the financial assistance is paid in the form of long-term debt servicing, it must cover a period of between:

  • three and five years for amounts up to $500,000, or
  • five and ten years for amounts over $500,000.

All capital expenditure for community infrastructures is amortized and financed according to service life, i.e., according to the same rules that apply to similar infrastructures funded by the Government of Québec in non-Indigenous territories.

Last update: February 23, 2023

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