What is a capital project?
A capital project is a project involving the retrofitting, construction, replacement, expansion, soil remediation or removal, or purchase and installation of fixed assets or infrastructure that will improve environmental performance in municipal brownfields, energy, transportation, waste, or water, or some combination of these sectors.
How much funding is available per project?
We offer below-market loans, usually in combination with grants, to implement capital projects. Funding is provided for up to 80% of eligible project costs. The loan maximum is $10 million, and the grant amount is set at up to 20% of the loan to a maximum of $1 million*.
*Grants are typically around 10% of the loan amount approved. High-scoring projects may be awarded the maximum 20% grant, without exceeding the $1 million grant limit per project.
Brownfields: Grants are not available for capital projects in the brownfields sector. There is no specified loan limit for capital projects in this sector, but we reserve the right to adjust the maximum loan per project.
If your application is approved, costs become eligible for partial reimbursement on the date we receive your application. However, costs you incurred up to 90 days before you submitted your application to complete the application form (consultant costs) are also eligible for partial reimbursement.
What is the total funding available for capital projects?
In 2013–2014, we are aiming to approve:
- $45 million in loans and $5 million in grants for capital projects in the energy, transportation, waste and water sectors
- a minimum of $20 million in loans for capital projects in the brownfields sector
The Green Municipal Fund is a perpetual endowment fund. These annual funding limits help us to prudently manage the funding available for green projects.
What is the interest rate for GMF loans?
For municipal governments, we offer loans at competitive rates that are typically lower than other municipal financing sources, for the respective terms. The rate can be as low as 1.5% below the Government of Canada bond rate for the respective terms. Since GMF loans in all sectors but brownfields are offered in combination with a grant of up to 20% (to a maximum of $1 million) of the loan amount, this makes the effective yield even lower.
For partners in municipal environmental projects, such as private sector entities and municipally owned corporations, we offer competitive, long-term financing based on a credit risk assessment.
Coupled with the grants that we offer in all sectors but brownfields, our effective loan rate is much lower than a comparable rate from traditional funding sources.
What types of capital projects are eligible for funding?
Eligibility for GMF funding for capital projects is structured on environmental objectives or outcomes as opposed to specific project types. By not specifying the project type, we want to leave it up to you how you achieve your environmental goals. We want municipalities to be able to plan and seek funding from GMF on a range of projects that may be very different but lead to the same environmental outcomes. We think this approach is flexible and supports innovation.
GMF funding is available to help you meet the following environmental objectives:
|Bring contaminated sites back into productive use and reduce the need for greenfield development (a greenfield is a site that has not been previously developed)|
|Reduce energy consumption|
|Reduce fuel consumption for transportation|
|Reduce waste sent to landfill|
Who is eligible?
GMF funding for capital projects is available to all municipal governments and their partners. For more information, see Eligibility.
How are projects selected for funding?
See our funding approval process.
See our FAQs, or contact us at 613-907-6208 or 1-877-997-9926.