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MDIP Fund - About the Program

The Program has terms and conditions which will be incorporated within contribution agreements entered into with successful applicants.

General Features

The administration of the project proposal review phase of the Program will occur in three parts: (1) preparation and submission of a project proposal package for review;  (2) formal review of proposals by a multi-disciplinary team; and (3) negotiating and entering into a contribution agreement acceptable to NRCan. NRCan will make the final decision as to which projects will receive funding, and the level of support that will be available to each project.

A proponent may withdraw its proposal without penalty at any stage of the evaluation process.

All non-confidential communications in relation to this process must be in writing via e-mail to

Timeframe for Funding

The timeframe for funding support under this Program is from the date of signing a contribution agreement as a result of the announcement of the Request for Project Proposals (RPP) to October 31, 2016. Any expenses incurred prior to signing a contribution agreement will not be counted towards Total Project Cost of the project considered by the Program and should be excluded from the cost tables included in the Project Proposal (although they may be included as background and supporting information). Until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of NRCan to make a financial contribution to any project, including any costs incurred or paid prior to the signing of such contribution agreement.

Eligible Recipients

Eligible recipients are: for-profit and non-profit organizations who are legally incorporated or registered in Canada, including but not limited to electrical and gas utilities, industry associations and research associations, Canadian academic institutions, Canadian provincial, territorial and regional and municipal governments and their departments and agencies, but excluding sole-proprietorships.

Project Location

The project location will be in Canada.


Financial support for projects is constrained by the total amount available, the timeframe for projects and project selection criteria. Total funding available is $1.2 million until October 31, 2016.

Maximum Amount Payable per Project

The Program may pay up to 50% of Total Demonstration Project Costs per project. However, collaboration and leveraging are required, and these will be included among the evaluation criteria. The Program will provide for Eligible Costs incurred in Canada. Refer to 3.10 in the Applicant’s Guide.

The proponent’s contribution, and that of its partner(s), may be partially in the form of eligible and verifiable in-kind support, provided that it directly supports the project. Refer to Appendix 3a in the Applicant’s Guide.

Basis and Timing of Payment

Contribution agreements will set out the required terms for payments made based on measurable, pre-defined project milestones and upon receipt of proper documentation as defined in the contribution agreement.

Final payment will not be made until all project activities have been completed by a Proponent and are deemed acceptable to Natural Resources Canada (NRCan) To ensure appropriate project oversight, a percentage of the contribution will be withheld until all conditions of the contribution agreement have been met. The percentage withheld will be determined based on the nature of the project, and will be stated in the contribution agreement.

Proponents under the Program may be audited at project completion or at NRCan’s discretion during the project and at any time up to five years after the project completion date.

Stacking of Assistance

Prior to signing contribution agreements, proponents will be required to disclose all sources of funding on individual projects, including contributions from other federal, provincial/territorial, and municipal governments and industry sources.

For Demonstration projects, total Canadian government assistance (federal, provincial/territorial and municipal governments, not including investment or funding from Crown or municipally-owned utilities) will not exceed 75% of Total Demonstration Project Costs.

Upon completion of a project funded by the Program, the Proponent will be required to disclose all sources of funding to that project, including contributions from other federal, provincial/territorial, municipal and industry sources.

Eligible Costs

Eligible Costs (refer to section 3.2 and Appendix 2 of the Applicant’s Guide under the Program) will be directly related to the approved projects.

Only those eligible costs specifically approved and detailed in the contribution agreement will be eligible under the Program, to a maximum amount as set out in the contribution agreement.

NB: Overhead expenses are legitimate eligible costs limited to a maximum of 15% of the total of all other eligible costs in the implementation of a project and should be included in the total project costs. Refer to Appendix 2 of the Applicant’s Guide for details.

Reporting Requirements

For Demonstration projects, Proponents will submit regular financial statements to NRCan summarizing the expenses incurred as per the terms and conditions of the contribution agreement.

Regular reports and communication (refer to section 3.11 of the Applicant’s Guide) between NRCan and the Proponent will be required and implemented to monitor progress.

Repayable Contributions

Transfer Payments for Demonstration projects may be repayable. See Appendix 2 of the Applicant’s Guide for details.

Other Terms and Conditions

  • All Intellectual Property that arises in the course of the Project shall vest in the Proponent. The Proponent will supply to Canada the reports and documents described in the funding agreement and the Proponent will grant to Canada a non-exclusive, irrevocable, world-wide, royal-free license in perpetuity to use the data and information contained in such reports and modify such reports and documents for non-commercial government purposes.
  • No Member of the House of Commons shall be admitted to any share or part of the contribution agreements, or any resulting benefit.
  • Funding may be cancelled or reduced in the event that departmental funding levels are reduced by Parliament. Agreements will include provisions for cancellations or reduction of transfer payments in the event that departmental funding levels are changed by Parliament.
  • NRCan will have the right to, and plans to, audit records and documents of all approved projects, at any time during the course of the project and for a period of five years following completion of the project. NRCan will stipulate dates of scheduled audits in the contribution agreement.
  • Each contribution agreement will include a clause of indemnity by the Proponent for any claims against the Crown arising from the approved project.
  • As part of project monitoring requirements, NRCan will have the right to visit and inspect all project sites, upon providing a reasonable notice to the project proponents.
  • Failure of the applicant to enter into a contribution agreement acceptable to NRCan by the end of the respective calendar year may result in the cancellation of the project approval.
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