2014 New Building Canada Fund: Provincial-Territorial Infrastructure Component, National/Regional Projects
Project Business Case Guide for Proposed Projects Identified by Provinces/Territories
Annex C - Eligible and Ineligible Expenditures

Eligible expenditures will include only the following:

Eligible expenditures will be all direct and necessary expenditures incurred and paid by an eligible recipient or ultimate recipient towards an eligible project, associated with acquiring, planning, designing, constructing or renovating a tangible capital asset, as defined by Generally Accepted Accounting Principles (GAAP).  This also specifically includes the following:

1. Expenditures directly associated with joint federal communication activities and with federal project signage.
2. The incremental costs of the eligible or ultimate recipient’s employees or leasing of equipment 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;
• 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 Canada.
3. Costs of Aboriginal consultations and where appropriate accommodation;

For P3 projects specifically, the capital costs of acquiring, constructing or renovating a tangible capital asset, determined on the basis of cost data contained in the financial model supporting the project agreement. The following are also considered eligible costs:

1. Bid costs, defined as costs incurred by an applicant for a project to compensate a private sector bidder for the development of a bid proposal; and
2. Construction finance costs of the Project Consortium.

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:

1. 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;
2. Expenditures incurred after the project completion date with the exception of expenditures related to audit and evaluation requirements pursuant to the agreement;
3. The expenditures related to developing a business case or proposal for funding;
4. The expenditures related to purchasing land, buildings and associated real estate and other fees;
5. Financing charges and interest payments on loans, except in accordance with the list of eligible expenditures above;
6. Leasing land, buildings, equipment and other facilities except for equipment directly relating to the construction of the project;
7. Furnishings and non-fixed assets which are not essential for the operation of the asset/project;
8. General repairs and maintenance of a project and related structures, unless they are part of a larger capital expansion project;
9. Services or works normally provided by the recipient, incurred in the course of implementation of the project, except those specified as eligible expenditures;
10. The expenditures related to any goods and services which are received through donations or in kind;
11. Any overhead costs, including salaries and other employment benefits of any employees of the recipient, its direct or indirect operating or administrative costs of ultimate 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 the list of eligible expenditures above;
12. Taxes for which the ultimate recipient is eligible for a tax rebate and all other costs eligible for rebates; and
13. Legal fees.