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ARTICLE · 28 APRIL 2024

NWT Releases New Business Incentive Policy

Lawson Lundell LLP
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The Government of the Northwest Territories (GNWT) has updated its Business Incentive Policy (BIP). The BIP is a way for the GWNT to recognize and account for higher costs associated with operating businesses.

CanadaGovernment, Public Sector
Tim Syer
Tim Syer
Scott Parker
Scott Parker
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WHAT'S THE BIP?

The Government of the Northwest Territories (GNWT) has updated its Business Incentive Policy (BIP). The BIP is a way for the GWNT to recognize and account for higher costs associated with operating businesses in the Northwest Territories (NWT). The BIP applies a "bid adjustment" to qualified NWT businesses: essentially a 15% to 20% reduction on bid prices submitted by NWT businesses when they're compared to non-NWT businesses. The purpose of the policy is to level the playing field for NWT companies competing with southern companies.

The BIP isn't new; it's been around for nearly 40 years. In 2008 the GNWT was considering getting rid of it altogether, but eventually chose to keep it.[i] The BIP was reviewed extensively in 2021, and a report on procurement policies and practices was released in July, 2023.[ii] In October, 2023, the GNWT revised the BIP, but they didn't release it publicly until March, 2024. You can find the new BIP here.

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