ARCHIVED - Atlantic Canada Opportunities Agency

Atlantic Innovation Fund (AIF) – Voted

May 10, 2001

March 31, 2010

The AIF focuses on increasing research and development linked to economic development and commercialization objectives in areas that are of strategic importance to the region, particularly those that support the growth of strategic sectors/clusters.

The AIF emphasizes building Atlantic Canada’s system of innovation, including components that bridge the gap between research institutions and the marketplace. It also encourages synergies among the various components of this system through partnerships, alliances and networks.

The AIF supports research and development projects that focus on the areas of natural sciences, applied sciences, and social sciences and humanities, where these are linked explicitly to the development of technology-based products, processes or services, or their commercialization, thereby strengthening the region’s system of innovation.

More information on the AIF can be found at http://www.acoa-apeca.gc.ca/e/financial/aif/index.shtml.

The AIF is linked to the strategic outcome, Competitive and sustainable Atlantic enterprises, with emphasis on those of small and medium size.

The AIF focuses on accelerating the development of the knowledge‑based industry and facilitating transition within traditional industries by increasing the region’s capacity to carry out leading-edge research and development, thereby contributing to the development of new technology-based economic activity in Atlantic Canada. Clients of the AIF include businesses and institutions such as universities and research institutes. One of the key accomplishments for 2007-2008 was the successful approval of 31 R&D projects for over $80 million in ACOA assistance (29 projects under AIF Round V and 2 projects under the AIF Strategic Initiative process). As a result of these projects, the Agency was able to leverage an additional $83 million from other sources, including the private sector, universities and other research institutions, provincial governments, and national programs.

The AIF facilitates the development of strategic sectors characterized by regional clusters of firms.  Under AIF Round V, 21 of the 29 approved projects, accounting for more than $45 million in AIF funding, will augment development of the IT, life sciences/biotech, and oil and gas/oceans technology clusters and complement the National Research Council’s Atlantic Cluster initiative.

ACOA encourages AIF project proponents to seek opportunities for collaboration in such areas as research and development, project management, marketing or commercialization expertise in order to help maximize the economic benefits and enhance the likelihood of commercialization success. In 2007-2008, there were over 100 meaningful partnerships on AIF-funded projects.

Given that the level of privately funded R&D in Atlantic Canada is well below the national average, the AIF has focused on increasing the level of participation by commercial entities in innovation activity. For example, the percentage of approved projects from commercial proponents was 55% in 2007-2008, while over 90% of approved institutional projects had private sector partners (up from 85% in 2006-2007).

Actual spending under the AIF was less than planned due to complex contribution agreements being negotiated and signed later than planned following the approval of projects.

An Impact Evaluation of Innovation, which includes the Atlantic Innovation Fund (AIF) and the Business Development Program (BDP), is under way and the final report will be completed in May 2009. An internal audit of the Atlantic Innovation Fund was concluded in March 2007. The audit results show that the Agency has exercised due diligence in the delivery of the program, and has substantially complied with the terms and conditions of the program and with the Treasury Board Policy on Transfer Payments. More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit.shtml.

Business Development Program (BDP) – Voted

June 25, 1995

March 31, 2010

The program helps set up, expand or modernize businesses, and focuses on small and medium-sized enterprises (SMEs). More information on the BDP can be found at http://www.acoa-apeca.gc.ca/e/financial/business.shtml.

The BDP is linked to the following strategic outcomes: Competitive and sustainable Atlantic enterprises, with emphasis on those of small and medium size; Dynamic and sustainable communities for Atlantic Canada; Policies and programs that strengthen the Atlantic economy.

During 2007-2008, the BDP invested in 32 new business establishments and in 125 projects to help companies expand and/or modernize their facilities, thereby improving their productivity and preserving long-term prospect of employment.  This important program continues to focus on innovation, skills development and trade activities.  This results in enhancing the business environment in Atlantic Canada.  The program serves to fill gaps in the financing continuum for SMEs and entrepreneurs in Atlantic Canada.

Spending levels for the BDP were adjusted upwards by $6.7 million, from $113.0 million to $119.7 million to meet increased programming requirements for innovation projects and entrepreneurship and business skills development projects under the activity, Fostering the development of institutions and enterprises. The increase of $11.5 million in this activity and the $0.1 million under Advocacy were funded from decreased requirements of $8 million from the Atlantic Innovation Fund and lower than anticipated costs of $3.3 million and $1.6 million respectively under the activities, Fostering the economic development of Atlantic communities, and Policy.

Components of the BDP are being evaluated under both an Impact Evaluation of Innovation and an Impact Evaluation of Community Investment/Community Development Resources to be completed by the end of May 2009. An internal audit of the BDP was concluded in November 2006. The audit results show that the Agency has exercised due diligence in the delivery of the program, and has substantially complied with the terms and conditions of the program and with the Treasury Board Policy on Transfer Payments.  An internal audit of the Entrepreneurship and Business Skills Development area of the BDP was concluded in 2008.  The audit results show that on an overall basis, the Agency exercised due diligence in the delivery of the Entrepreneurship and Business Skills Development elements of the BDP.  More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/bdp_qaa.shtml and at http://www.acoa-apeca.gc.ca/e/library/audit/ebsd.shtml.

Community Futures Program (CF) – Voted

May 18, 1995

October 2, 2010

Community Futures is a program that supports community economic development and builds the capacity of communities to realize their full sustainable potential. The program provides financial support to CF organizations (e.g. Community Business Development Corporations in Atlantic Canada) that, in collaboration with other partners and stakeholders, can assess their situation and develop strategies to meet their needs. It also provides support to small and medium-sized enterprises (SMEs) and social enterprises, and for undertaking appropriate community economic development initiatives.

The program is linked to the strategic outcome: Dynamic and sustainable communities for Atlantic Canada.

In 2007-2008, ACOA invested $12.6 million through the CF program to support operational costs of the 41 Community Business Development Corporations (CBDCs) and to their provincial and Atlantic associations to assist in their work of filling the gap in providing access to capital and counselling for rural SMEs in Atlantic Canada.

This support allowed the CBDCs to provide over 7,600 counselling sessions to clients throughout the Atlantic region. The CBDCs also provided 1,050 loans for a total investment of $48.1 million in rural communities and leveraged an additional $37 million from other sources.

Additionally, the CF financial assistance allowed the CBDCs and their provincial and Atlantic Canadian associations to become active partners in the economic development within their communities by participating in the planning process and delivering important activities and programs. The Agency’s support provided the opportunities for the CBDCs to be active members of the many provincial, regional and pan-Canadian networks that work together in their communities with key industry leaders and all levels of governments to provide advice, direction and share best practices in order to ultimately develop and support community development of SMEs within the region. This has resulted in a better understanding of the issues and challenges that can be addressed and a more strategic focus on projects that will overcome challenges within rural communities.

The increased expenditures related to an infusion of additional investment capital in order to address a community adjustment issue (i.e. allowing the community of Digby through a not for profit organization to acquire ownership of a critical piece of infrastructure related to the fisheries sector.)

A follow-up audit of the CF Program is planned for 2008-2009. The previous audit was concluded in 2005 and indicated that the Agency has exercised due diligence in the delivery of the program.  More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/cfs.shtml. A Pan-Canadian Community Futures Program Impact Evaluation is underway and includes individual Regional Development Agencies (RDAs) evaluations. The Pan-Canadian Community Futures Impact Evaluation Roll-Up Report due date is November 2008.  The previous Community Futures Program Formative Evaluations were completed in fiscal year 2002-2003 by the RDAs. They addressed issues with respect to program rationale, success and cost-effectiveness, and pointed to the need to improve the measurement and management of performance. The roll-up report found the CF Program to be relevant and concluded that there was continuing need for the program.

Innovative Communities Fund (ICF) – Voted

April 1, 2005

March 31, 2010

The program is designed to make a non-repayable contribution in support of strategic initiatives that respond to the economic development needs of communities. To effectively address the wide range of challenges and opportunities of regions, communities and sectors, the ICF takes a comprehensive approach to working with communities at various stages along the economic development continuum, while ensuring sustainable economic outcomes.

There are two distinct components of the ICF. The first (strategic community capacity) is designed to support non‑commercial/non‑profit strategic initiatives that target the economic development needs of rural communities. The second component (proactive investments) is intended to stimulate transformative change. This component will support proactive identification and implementation of strategic opportunities with local partners. The program is designed to respond to the unique and varying needs of communities, and within this flexible approach there will be clear links to sustainable economic development outcomes. This focus on outcomes will ensure the program has the desired impact on the Atlantic region’s economy.

The ICF is linked to the strategic outcome, Dynamic and sustainable communities for Atlantic Canada.

During 2007-2008, the ICF committed a total of $52.4 million to 150 projects across the region. In 2008-2009, ACOA will conduct an impact evaluation of the Community Investment sub-activity, which includes the ICF.

Actual spending under the ICF was higher than planned due increased take-up under the program.

An Impact Evaluation of Community Investment/Community Development Resources Impact, which includes the ICF and the BDP, is underway and the final report is to be completed in May 2009. An audit of the program was completed in 2007 and indicated that the Agency exercised due diligence in the delivery of Community Development programming, including the ICF.  More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/ced.shtml.

Infrastructure Canada Program (ICP) – Voted
Canada-Newfoundland and Labrador Agreement
Canada-Prince Edward Island Agreement
Canada-Nova Scotia Agreement
Canada-New Brunswick Agreement

December 12, 2000

March 31, 2009

The Infrastructure Canada program is a federal-provincial/territorial cost-shared initiative that improves urban and rural municipal infrastructure in Canada. Program objectives include improving Canadians’ quality of life through investments that enhance the quality of the environment, support long-term economic growth, improve community infrastructure, and build 21^st century infrastructure.

The program is linked to the strategic outcome, Dynamic and sustainable communities for Atlantic Canada.

Since agreements were signed with the four Atlantic Provinces, from 2000 to 2006, over $180 million of federal funds has been committed to close to 700 approved projects under the ICP. The program’s first priority is green municipal infrastructure (i.e. projects that improve the quality of the environment and contribute to Canada's goal of clean air and clean water). ACOA is well ahead of target on green objectives, with 91% of federal funds having been directed to projects in this category.

Actual spending in 2007-2008 was higher than planned due to carry forward of commitments from previous years as projects under the ICP are finalized with the winding down of the program.

An audit of the program will be completed in 2008-2009.  A management audit of the Infrastructure Canada Program in 2005-2006 was positive, with no substantial issues noted. More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/icp.shtml.

Saint John Shipyard Adjustment Initiative (SJSAI) – Voted

May 28, 2003

May 31, 2010

The Saint John Shipyard Adjustment Initiative was approved with the objective of addressing overcapacity at the Saint John shipyard, which was a recurring problem for the industry. The SJSAI funding is designed to address the lack of manufacturing activities at the former shipyard site and the impact of the shipyard’s closure on New Brunswick’s economy.

The initiative is linked to the strategic outcome, Dynamic and sustainable communities for Atlantic Canada.

In 2007-2008, ACOA continued to deliver the SJSAI. This initiative was designed to ensure the transition from the closure of shipyard operations in Saint John, New Brunswick, to redevelopment of the site for other economic development use, through $55 million in total available funding.

In the past year, this initiative has seen the conclusion of the former shipyard’s refurbishment into a green industrial park that is now poised to accept tenants.  In this regard, it is one of the few North American examples of the successful transformation of a former shipyard site. 

The first project approved under the Shipyard Redevelopment Program (SRP) included a feasibility study to identify the best use for the former shipyard site as well as site improvements, in order to remove impediments for future development. The total provisionally repayable contribution for this project is $9.95 million and was fully disbursed by the end of fiscal 2007-2008.

The SRP led to an initial application under the SJSAI’s Industrial Diversification Program (IDP) to assist in the establishment of a gypsum wallboard manufacturing facility on the former shipyard site. This project was allocated $35 million in provisionally repayable funding and was completed during fiscal 2007-2008. This plant employs 56 people with a monthly forecasted volume of 12-18 million square feet. The site’s owner, The Irving Group, is currently evaluating several proposals to utilize the balance of the SJSAI; these include additional manufacturing facilities that will create synergies with the wallboard plant.

Actual spending was less than planned due to extension of the program beyond original timelines.

An evaluation of the SJSAI will be conducted at a future time, once the initiative is completed. An internal audit was concluded in March 2006. The audit results show that the Agency has exercised due diligence in the delivery of the program, has complied with the terms and conditions of the program and with the Treasury Board Policy on Transfer Payments.
More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/sjsai.shtml.