Conditionally Repayable Contributions Pilot

In fiscal year 2021 to 2022, Global Affairs Canada (GAC) launched a 5-year pilot program—the Conditionally Repayable Contributions (CRC) Pilot —to support GAC’s current commitments to help mobilize additional private sector investment to advance the objectives of Canada’s Feminist International Assistance Policy (FIAP) and the United Nations’ Sustainable Development Goals.

The CRC Pilot enables the strategic use of public funds to encourage additional investment in Official Development Assistance (ODA)-eligible countries, and/or sectors in these countries, that are deemed too risky by domestic and international finance providers. The Pilot is initially focused on eligible projects with loan portfolios and/or loan portfolio guarantee funds. These activities are generally not eligible for GAC’s funding through regular grants or non-repayable contributions.

The Pilot will support a limited number of projects initially and expand over time during the 5-year period.

You may wish to visit this web page on a regular basis, as the Pilot will evolve based on its experimentation and learning.

Eligibility criteria

GAC is currently considering projects for inclusion in the CRC Pilot that meet the following criteria:

• Type of financial instruments: The proposal supports loan portfolios and/or funded loan portfolio guarantees.
• Experience: The applicant has a proven record and demonstrable programming and risk management experience in the delivery of innovative development finance pursued through the proposal. For example, this includes appropriate financial controls and due diligence practices.
• Financial management and capacity: The applicant has sufficient financial management and financial capacity relative to the size of the proposed funding.
• Risk sharing: The proposal includes a financial contribution from the applicant at the fund level for the CRC component. Under certain circumstances, the risk-sharing criterion can be met through the contribution of implementing partners or other contributors at the fund or transaction level. This supports the sharing of risk between the applicant and GAC.
• CRC amount: The CRC component can be part of a larger value FIAP compatible development project funded through GAC non-repayable funding. Thus, the amount of overall GAC funding requested for the CRC and non-repayable components is between Can$5 million and Can$20 million.

The proposal should also demonstrate how the project aligns with the Organisation for Economic Cooperation and Development’s Development Assistance Committee (DAC) Blended Finance Principles.

How to submit a CRC proposal

Apply for funding through an unsolicited proposal on the Partners@International portal. For more information on how GAC assesses projects for the CRC Pilot, see Apply for funding through an unsolicited proposal regularly and, more specifically, the section on innovative finance.

Contact

If you have specific questions on the requirements for the Pilot, please contact piloteCRCpilot@international.gc.ca.

Please note that we will not provide feedback on specific proposals.

Frequently asked questions: Conditionally Repayable Contributions Pilot

1. Can GAC provide funding for innovative finance projects such as loan funds or loan portfolio funded guarantee funds through a regular or non-repayable contribution?

   Under its authorities, GAC can only support these activities through a repayable contribution, including under the CRC Pilot. Exceptions may be made if:

   • The value of the proposed innovative finance project component to be funded by GAC is less than $100,000
   • The applicant is fully financing this project component (the cost-share eligibility of this contribution would be confirmed by GAC)
   • Subject to GAC’s review and approval, the project applicant or the intermediary is a local cooperative or a local government agency; the contribution is intended to revolve for the same purpose and the benefits accrue broadly to the ultimate recipients

2. Can GAC fund a project with a CRC component that has a duration of more than 5 years?

   Yes, GAC may fund innovative development finance projects with durations of over 5 years, as required. For example, this longer duration would account for loan repayment and collection activities by financial intermediaries.

   For greater clarity, the length of the (5-year) pilot program refers only to the period during which GAC will enter into CRC agreements under the pilot program, and does not limit the duration of a project.