2014 New Building Canada Fund: National Infrastructure Component
Project Business Case Guide for Proposed Projects
Annex C – Eligible And Ineligible Expenditures

Eligible expenditures are limited to the following:

  • The capital costs of acquiring, constructing or renovating a tangible asset, as defined and determined according to accounting principles generally accepted in Canada;
  • Expenditures directly associated with joint federal communication activities (press releases, press conferences, translation, etc.) and with federal project signage recognition set out in the Communication Protocol that will form part of the federal-provincial/territorial contribution agreement;
  • All planning (including plans and specifications) and assessment costs specified in the agreement such as the costs of environmental planning, surveying, engineering, architectural supervision, testing and management consulting services. Canada will contribute no more than 15 per cent of its contribution to this cost;
  • The costs of engineering and environmental reviews, including environmental assessments and follow-up programs as defined in the Canadian Environmental Assessment Act 2012 and the costs of remedial activities, mitigation measures and follow-up identified in any environmental assessment;
  • Costs of project –related signage, lighting, project markings and utility adjustments;
  • Costs of Aboriginal consultation;
  • Recipient audit and evaluation costs as specified in the agreement;
  • The incremental costs of the recipient's employees may be included as eligible expenditures under the following conditions:
    • The recipient is able to demonstrate that it is not economically feasible to tender a contract and clearly demonstrate that there is value for money in using internal employees;
    • The employee or equipment is engaged directly in respect of the work that would have been the subject of the contract; and
    • The arrangement is approved in advance and in writing by the Minister.
  • Leasing of equipment related to the construction of the project; and,
  • Other costs that, in the opinion of Canada, are considered to be direct and necessary for the successful implementation of the Project and have been approved in writing prior to being incurred.

Note: while eligible expenditures become eligible as of the date of approval- in-principle, eligible expenditures can only be reimbursed to a recipient following the signing of a contribution agreement.

The following are deemed ineligible expenditures:

  • Expenditures incurred prior to the date of approval-in-principle as indicated in a letter to the recipient, as well as any and all expenditures related to contracts signed prior to the approval-in-principle date; unless otherwise approved by Canada for joint federal-recipient communications;
  • Expenditures incurred after the project completion date with the exception of expenditures related to audit and evaluation requirements pursuant to the contribution agreement;
  • The expenditures related to developing a business case or proposal for funding;
  • The expenditures related to purchasing land, buildings and associated real estate and other fees;
  • Financing charges and interest payments on loans;
  • Leasing land, buildings, equipment and other facilities;
  • Furnishing and non-fixed assets which are not essential for the operation of the asset/project;
  • General repairs and maintenance of a project and related structures, unless they are part of a larger capital expansion project;
  • Services or works normally provided by the recipient, incurred in the course of implementation of the project, except those specified as eligible expenditures;
  • The expenditures related to any goods and services which are received through donations or in kind;
  • Any overhead costs, including salaries and other employment benefits of any employees of the recipient, its direct or indirect operating or administrative costs of recipients, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff, except in accordance with section c) and h) of the list of eligible expenditures above;
  • Taxes for which the recipient or ultimate recipient is eligible for a tax rebate and all other costs eligible for rebates; and
  • Legal fees.
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