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 Programs - Canadian Partnership Programs - Private Sector - Industrial Cooperation Program (CIDA-INC) - Frequently Asked Questions
Frequently Asked Questions
General
Eligibility
Contribution
Process
General
Briefly, what is the CIDA-INC Program?
CIDA's Industrial Cooperation Program (CIDA-INC) provides financial support to Canadian firms to help them at the time they are considering an international venture in developing or in transition countries.
Why does this program exist?
CIDA-INC's objective is to stimulate private sector development and investment in developing countries, so as to create jobs, increase local capacity and strengthen the local economies. It is one part of CIDA's overall objectives to promote sustainable development and poverty reduction in developing or in transition countries.
In which countries does CIDA-INC operate?
CIDA-INC supports projects in Asia, the Americas, Africa, Middle East, and Eastern Europe. Please consult our detailed list of Eligible countries and Contacts.
Is there a preferred time of year to submit a proposal to CIDA-INC Program?
We accept applications throughout the year. Prompt service is offered most of the year, but staff changeovers and summer holidays mean that the consideration of your proposal could take longer if submitted between May 15 and end of August.
What language can I use when submitting a proposal for a CIDA-INC contribution?
You may make the official proposal to CIDA in the official language of your choice (French or English), regardless of the language of the country of your venture. Supporting documentation can be in the official language that is convenient to you. In certain cases, supporting documentation in Spanish or Portuguese is also acceptable, but in this case, please check first with your program manager.
Will my firm's proposal to CIDA-INC be kept confidential?
Yes. Your firm's documentation is revealed only to a limited number of federal offices which deal with foreign investment issues and contribution to companies; however, once a financial contribution is approved by CIDA, the name of the firm, the size of the contribution and a short description of the purpose of the contribution, may be made public.
 Eligibility
Is my firm eligible for a CIDA-INC contribution?
CIDA-INC’s program is financed by government revenue and thus by the Canadian taxpayer. Therefore, the program is aimed at private sector firms operating in Canada which primarily use Canadian resources in their business.
My firm (a Canada-based affiliate) is owned by an international corporation. Is the Canadian operation eligible for a CIDA-INC contribution?
Yes, as long as it is the Canadian operation that carries out the work, with Canadian resources, and with the expectation that the downstream project will benefit the Canadian operation.
My firm is small, is it eligible for a CIDA-INC contribution?
Only firms that have a minimum of three years in business with sales of $700,000 per year or more are eligible.
How insistent is CIDA-INC with respect to downstream contracts/investments?
This is a key element of CIDA-INC Program. We will not review a proposal from your firm unless there is a clear expectation on your part that there will be a downstream viable venture project to be supported by CIDA-INC, and that financing is imminently available to you.
What does CIDA-INC expect in terms of social development and impact?
While we recognize that the financial and commercial viability of your venture overseas is your first concern, CIDA is also looking for positive impacts on job creation, technology transfer, capital investment, local procurement, and new export development markets for the country. As well, the overseas venture is expected to address the particular needs of women in the developing country and to operate within the framework of the Canadian Environmental Assessment Act.
Can my firm make an application to CIDA-INC for project support (training and other activities) even if we did not get support from CIDA-INC for the initial viability/feasibility study?
The simple answer is yes. We welcome proposals from firms that have very recently launched a venture overseas and that, belatedly, have learned of the CIDA-INC support program.
Is the CIDA-INC program open to new firms or does it prefer dealing with firms it already knows?
Every year, one half of proposals submitted to CIDA-INC are from first-timers, the other half from firms we already know. There are no quotas on the number of firms in any one sector, or from any one part of Canada.
Contribution
What is the amount of a CIDA-INC contribution?
Most CIDA-INC contributions range from $100,000 to $600,000. More may be available for large projects.
Can a CIDA-INC contribution be used for project investment?
A CIDA-INC contribution cannot be used to capitalize a project. It generally covers studies and training activities.
Can the contribution be increased if expenses are greater than anticipated?
No. CIDA-INC is a cost-sharing program, based on the initial proposal. Every attempt is made with the firm at the outset to establish the full costs of a study or a training program. Subsequent cost overruns cannot be claimed under the program.
Does CIDA under the CIDA-INC program make advances under its contribution agreements?
No. Since the CIDA-INC program deals only with profit-making private sector companies, we expect the firms receiving a CIDA-INC contribution to cover the upfront costs and to claim payment only when a specific task (i.e. a deliverable) is completed.
Does CIDA’s Private Sector Directorate (PSD) audit its contributions?
The current billing system is through deliverables. Once your firm produces a completed deliverable, your firm is paid an agreed amount. Only when presenting the final deliverable will your firm be asked to make a declaration of all costs incurred. Every year, CIDA carries out financial audits of some contributions.
Apart from a potential audit, what other ways does CIDA under the CIDA-INC program follow up on its contributions?
On the project content side, all projects are followed up by telephone by our employees. Often, CIDA-INC supported projects are also visited by PSD staff on mission, or by embassy personnel. On occasion, contributions are more formally evaluated some years after the final payment has been made. Thus our contribution to your project will be reviewed in some way by CIDA and may be audited as well.
Process
How long does it take to obtain approval for a CIDA-INC contribution?
Once all the data we require has been provided, it should take about 16 weeks to secure an approval for a CIDA-INC contribution. This time required is invested in a consultation process with other federal institutions, especially the Canadian embassy in the country of your intended venture. As well, the social and environmental aspects of the project have to be reviewed. Finally, for ease of management downstream, the contribution payment will be done by deliverables.
I would like to discuss a potential proposal but it is not finalized yet, is this alright?
Private Sector Directorate (PSD) staff welcome calls to discuss projects even at their very early stages of development. Your call to PSD’s CIDA-INC program will be well received. In addition, PSD staff frequently visit cities across Canada throughout the year and can meet with you at your place of business to discuss a potential project. As well, there are resident CIDA staff in Vancouver, Edmonton, and Moncton, with satellite offices in Calgary, Saskatoon , Winnipeg, Halifax and St. John's. Just access our Eligible Countries and Contacts.
How many people will I have to deal with at CIDA-INC?
PSD has a one-stop shop policy for the CIDA-INC program, whereby the initial contact, the detailed project discussion and contribution negotiation will all be with the same program manager, who will know the country in which you are interested. On occasion, at the time you are making your claims under the contribution agreement, a program assistant from PSD may call you. PSD also has employees who will remain in touch with your firm in the years following the contribution.
Is it necessary to visit CIDA in Ottawa-Gatineau to make my firm known to you, and will this help my proposal?
The answer to this is a clear “No”. We discourage firms from incurring expenses to visit our CIDA HQ. We make extensive use of telephone and e-mail so as to serve all firms in the same way. With Government-On-Line implementation, even more interaction with firms will be through electronic means, thus speeding up the process, and allowing for the easier transmission of documents in all formats.
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