Stake In The Ground: Indigenous Equity In Canadian Infrastructure

Over the past few years, a combination of federal and provincial government programs — anchored by loan guarantees, equity loans, and legislative reforms — has dramatically expanded the capital available to Indigenous communities seeking ownership stakes in major project developments in Canada, including in energy, transportation, and critical minerals sectors.

The federal Indigenous Loan Guarantee Program has grown from CA$5 billion to CA$10 billion.¹ The Canada Infrastructure Bank's Indigenous investment target has tripled to CA$3 billion.² Ontario's Indigenous Opportunities Financing Program has been expanded to CA$3 billion and transferred to the Building Ontario Fund.³ Alberta's Indigenous Opportunities Corporation now manages a CA$3 billion loan guarantee pool and has closed nine transactions.⁴ Manitoba has launched a new CA$300 million Indigenous loan guarantee program tied to its Call for Wind Power.⁵ The Building Canada Act, which received Royal Assent on June 26, 2025, established the Major Projects Office with an express mandate to ensure that nation-building projects create equity ownership opportunities for Indigenous communities.

This article surveys the seven principal government programs and initiatives currently facilitating Indigenous equity ownership in Canadian infrastructure, and identifies key themes for clients considering Indigenous equity partnerships.

Canada Infrastructure Bank

The Canada Infrastructure Bank is a federal Crown corporation with a statutory capital envelope of CA$35 billion (proposed to increase to CA$45 billion under Federal Budget 2025 amendments to the Canada Infrastructure Bank Act). The CIB operates two distinct financing initiatives to support Indigenous participation in infrastructure projects: the Indigenous Community Infrastructure Initiative and the Indigenous Equity Initiative.

The Indigenous Community Infrastructure Initiative (ICII), launched in March 2021, is a collaborative financing solution that provides low-cost, long-term loans to Indigenous infrastructure projects that combine public funding and/or private and institutional investment.⁶ Eligible projects must fall within at least one of the CIB's priority sectors — Clean Energy, Trade and Transportation, Enabling Housing Supply, and Digital Infrastructure and AI — and must provide a direct benefit to an Indigenous community by closing an infrastructure gap or enabling meaningful economic participation. The ICII requires Indigenous community capital and/or other industry sponsor investment of at least 20% of project capital cost net of grants, with CIB investments of between CA$5 million and CA$100 million representing no more than 80% of project cost net of grants.

The Indigenous Equity Initiative (IEI), launched in November 2023, is designed to fill a market gap by providing Indigenous communities with access to capital to purchase equity stakes in infrastructure projects in which the CIB is also investing.⁷ Through the IEI, the CIB provides equity loans of between CA$5 million and CA$100 million, financing up to 90% of an Indigenous group's total equity interest, with repayments targeted at 15 years at minimum Government of Canada interest rates. At least 10% of total Indigenous equity must be funded from the Indigenous partner. This initiative differs from the ICII in that it does not require a minimum percentage threshold investment of 20%, instead allowing Indigenous groups to acquire stakes with as little as 10% of their own capital contribution.

The CIB has a target to invest at least CA$3 billion in revenue-generating Indigenous infrastructure projects across its priority sectors, as set out in its 2026 Statement of Priorities and Accountabilities. By May 2025, the CIB had surpassed CA$1 billion in investments in Indigenous-led projects, with Indigenous participation in approximately a quarter of the 95 projects it had funded at that time.

Building Ontario Fund

The Building Ontario Fund is a provincial Crown agency that finances and invests in major infrastructure projects across Ontario. In the 2025 Ontario Budget, the province increased the BOF's capital allocation from CA$3 billion to CA$8 billion and expanded its mandate to cover six priority sectors: energy, affordable housing, long-term care, municipal and Indigenous community infrastructure, critical minerals enabling infrastructure, and transit.

A development of particular significance for Indigenous communities is the transfer of the Indigenous Opportunities Financing Program (IOFP) from the Ontario Financing Authority to the Building Ontario Fund, effective October 1, 2025. The IOFP was simultaneously tripled from CA$1 billion to CA$3 billion and expanded beyond electricity transmission and generation projects to encompass energy, pipelines, mining, critical minerals, resource development, and related infrastructure. The IOFP is available to entities wholly owned by one or more Indigenous partners that are funding equity investments in eligible infrastructure projects with a loan.

Canada Indigenous Loan Guarantee Corporation and the federal Indigenous Loan Guarantee Program

The Canada Indigenous Loan Guarantee Corporation (CILGC) is a wholly owned subsidiary of the Canada Development Investment Corporation, a federal Crown corporation.⁸ CILGC administers the CA$10 billion federal Indigenous Loan Guarantee Program (ILGP), which provides loan guarantees to support Indigenous equity ownership in major projects across all industry sectors, except gaming.

The ILGP was first announced in late 2024 with an initial allocation of CA$5 billion. In March 2025, the Government of Canada doubled the program to CA$10 billion and expanded its scope beyond energy and natural resources to include infrastructure, transportation, and trade projects. Loan guarantees under the program are available in amounts between CA$20 million and CA$1 billion.

A critical feature of the ILGP is its interoperability with provincial loan guarantee programs. CILGC enables coordination and stacking with provincial programs such as the AIOC, SIIFC, and the Building Ontario Fund's IOFP, allowing combined federal and provincial guarantees to cover up to 100% of equity acquisition costs.

As of April 2026, CILGC has issued two loan guarantees. The first, a CA$400 million guarantee supporting the Stonlasec8/Enbridge Westcoast pipeline transaction, closed on July 2, 2025. The second, supporting Aamjiwnaang First Nation and Kettle & Stony Point First Nation's acquisition of a nearly 20% equity stake in the Hydro One Chatham to Lakeshore transmission line, was issued on March 10, 2026.

Alberta Indigenous Opportunities Corporation

The Alberta Indigenous Opportunities Corporation (AIOC), established in 2019 as a Crown corporation of the Province of Alberta, was the first program of its kind in Canada.⁹ AIOC manages a CA$3 billion Indigenous loan guarantee pool to support Indigenous investment in medium to large-scale revenue-generating projects.

AIOC loan guarantees are available in amounts between CA$20 million and CA$250 million for investments across seven eligible sectors: natural resources, agriculture, telecommunications, transportation, tourism, healthcare, and technology. Applicants must be an eligible Indigenous group, meaning an Indian band as defined by the Indian Act (Canada) or a Métis Settlement established by the Métis Settlements Act. Consortium applications are permitted, provided at least one Alberta-based Indigenous group is a participating investor and Alberta-based Indigenous ownership constitutes at least 25% of the total proposed investment.

The mechanics of the AIOC loan guarantee are straightforward: AIOC stands behind the loan as a guarantor backstopped by the Government of Alberta's balance sheet, enabling Indigenous borrowers to qualify for improved lending terms without putting community assets or own-source revenue at risk. Loan repayment is made from revenues generated by the asset or investment itself. In addition to loan guarantees, AIOC offers discretionary capacity grants of up to CA$4 million annually to fund third-party advisory services — including legal, financial and technical advice — in support of due diligence and negotiation.¹⁰

Since inception, AIOC has closed nine transactions, issued over CA$745 million in loan guarantees, and directly supported 43 Indigenous Nations and groups. Notable transactions include the CA$93 million guarantee for six First Nations' investment in the Cascade Power Project, the CA$150 million guarantee for 12 Indigenous communities' acquisition of an 85% non-operating interest in Clearwater play midstream infrastructure with Tamarack Valley Energy, and the CA$40 million guarantee for eight Indigenous communities' investment in the Northern Courier Pipeline System.

Saskatchewan Indigenous Investment Finance Corporation

The Saskatchewan Indigenous Investment Finance Corporation (SIIFC) is Saskatchewan's provincial loan guarantee program, offering up to CA$75 million in loan guarantees with a minimum guarantee amount of CA$5 million. SIIFC supports Indigenous equity ownership in natural resource development, value-added agriculture, and related infrastructure within the province. Notably, SIIFC has supported George Gordon Developments' CA$7 million loan guarantee for the 32 MW Wicehtowak Solar Project.

Manitoba Indigenous Loan Guarantee Program

Manitoba is the most recent province to establish an Indigenous loan guarantee program. The Manitoba Indigenous Loan Guarantee Program (MILGP) was announced as part of the Manitoba Affordable Energy Plan in September 2024 and formalized through Budget 2025.¹¹ Administered by Manitoba Natural Resources and Indigenous Futures in collaboration with Manitoba Finance, the MILGP offers up to CA$300 million in loan guarantees to support Indigenous majority-owned wind energy projects developed in response to Manitoba Hydro's Call for Wind Power.

The MILGP is designed to work in tandem with Manitoba Hydro's procurement of up to 600 megawatts of utility-scale wind generation capacity, to be procured in three 200 MW phases through successive Requests for Proposals. Individual loan guarantees range from a minimum of CA$25 million to a maximum of approximately CA$100 million. Eligible projects must be at least 51% Indigenous-owned, represented through a special purpose vehicle or entity, with approval evidenced by a Band Council Resolution from each participating First Nation or a Cabinet Resolution from the Manitoba Métis Federation. Partnerships between Indigenous Nations across Manitoba are expressly supported and encouraged.

The first RFP for up to 200 MW was issued in March 2026 to proponents qualified through the Request for Qualified Suppliers process, with RFP-1 closing in summer 2026 and preferred proponents expected to be selected in 2027. First projects are anticipated to reach commercial operation between 2030 and 2032. The Manitoba Government has encouraged applicants to explore stacking opportunities with the federal ILGP and other available programs to secure the lowest cost of financing.

Major Projects Office

The Major Projects Office, established under the Building Canada Act (Royal Assent June 26, 2025) and launched on August 29, 2025, is a Special Operating Agency within the Privy Council Office headquartered in Calgary. The MPO serves as a centralized coordination point for "nation-building" projects designated by Cabinet as being in the national interest, with a mandate to streamline regulatory review through a "one project, one review" framework and to deliver decisions within a two-year timeline.

Indigenous equity participation is woven into the fabric of the MPO's mandate. Among the prescribed factors for designating a project of national interest is whether the project advances the interests of Indigenous peoples. An 11-member Indigenous Advisory Council, with representatives from First Nations, Inuit, Métis, and Modern Treaty and Self-Governing communities, was appointed on September 10, 2025 to guide the MPO's work on ensuring that major projects create opportunities for Indigenous equity ownership and responsible resource management.

The MPO is also designed to coordinate the various federal financing tools available for Indigenous equity participation. Federal Budget 2025 directed the CIB, Export Development Canada, the Canada Growth Fund, and CILGC to work alongside the MPO to structure and coordinate financing for nation-building projects. The government committed CA$213.8 million over five years to fund the MPO, including CA$10.1 million to Crown-Indigenous Relations and Northern Affairs Canada for Indigenous consultation and CA$40 million over two years to Indigenous Services Canada's Strategic Partnerships Initiative for Indigenous capacity-building on major projects.

Key themes and takeaways

Several themes emerge from the current program landscape and recent transaction activity that are of direct relevance to project developers, investors, and Indigenous communities considering equity partnerships.

First, the financing ecosystem is growing increasingly deep and layered to support Indigenous equity participation at virtually any scale, and combined federal and provincial support can substantially eliminate the financing gap that has historically prevented Indigenous communities from acquiring a meaningful ownership stake in major projects.

Second, the structure of Indigenous equity investments is becoming more standardized but remains highly fact-specific. Legal, tax, and structural considerations — including the choice of investment vehicle, governance rights, distribution mechanics, and the interaction of the Indian Act with commercial lending — remain critical to successful execution.

Third, provincial programs continue to evolve rapidly, with Manitoba's new MILGP representing the latest entrant. Clients operating across multiple provinces should be attentive to the differing eligibility criteria, sector scopes, and guarantee limits of each provincial program, as well as the opportunities for stacking federal and provincial guarantees to optimize financing costs.

Finally, the Major Projects Office and the Building Canada Act have created a new institutional architecture in which Indigenous equity participation is not merely encouraged but embedded in the review and approval process for nationally significant projects. The Indigenous Advisory Council's role in guiding the MPO's work means that proponents seeking expedited review of nation-building projects should engage early and substantively with Indigenous communities regarding ownership opportunities. For project developers, the message is clear: Indigenous equity partnerships are no longer optional or aspirational — they are increasingly imperative for major infrastructure projects in Canada.

Should you have any questions regarding Indigenous equity in Canadian infrastructure, or other issues related to public infrastructure and major projects, please do not hesitate to contact the author Ethan Sinclair or any member of Dentons' Infrastructure and Public-Private Partnerships group.

The author would like to thank Malik Rugege, articling student in the Ottawa office, for his significant contributions to this insight.

Footnotes

1. Prime Minister Carney meets with the leaders of the National Indigenous Organizations ↩

2. Indigenous Infrastructure | Canada Infrastructure Bank (CIB) ↩

3. Caldwell First Nation Announces Historic Equity Investment in Chatham ... ↩

4. Alberta Indigenous Opportunities Corporation - Alberta Indigenous ... ↩

5. Province of Manitoba | Manitoba Indigenous Loan Guarantee Program ↩

6. Indigenous Community Infrastructure Initiative (ICII) | Canada ... ↩

7. Canada Infrastructure Bank launches new Indigenous Equity Initiative ... ↩

8. Second Loan Guarantee Issued Under the Federal Indigenous Loan ... ↩

9. Loan Guarantees - Alberta Indigenous Opportunities Corporation ↩

10. Capacity Grants - Alberta Indigenous Opportunities Corporation ↩

11. Province of Manitoba | Manitoba Indigenous Loan Guarantee Program ↩