OTTAWA, April 16 (Reuters) - Canada will provide up to

C$5 billion ($3.6 billion) in loan guarantees to help Indigenous

groups invest in natural resource projects, the Liberal

government said in its annual budget on Tuesday.

The program could give the groups major investment

opportunities, from the government-owned Trans Mountain oil

pipeline to TC Energy's ( TRP ) Coastal GasLink pipeline, power

lines and wind and solar projects.

"That's going to be an absolute game-changer for Indigenous

companies and communities that are trying to get involved in the

renewable electricity sector," said Fernando Melo, federal

director of the Canadian Renewable Energy Association. "It's a

great start."

The Liberal government, which came to power in late 2015,

has invested billions of dollars to improve the living

conditions of Canada's First Nations, who have higher levels of

poverty and lower life expectancy than other Canadians.

A federal loan guarantee would allow First Nations to borrow

at favorable rates, enabling them to reap larger profits.

The loan guarantee program is sector-agnostic, indicating

that it will be available for all forms of resource projects,

including those involving oil and gas, said Niilo Edwards, CEO

of First Nations Major Projects Coalition, an Indigenous-owned

organization that advises First Nations on project investments.

"Not all nations have the same sector opportunity, so that

kind of approach is a sign of fairness," Edwards said.

For energy companies, Indigenous partnerships provide

capital infusions and a way to speed projects through approval

from provincial governments that in some cases require First

Nations investment.

Details have not yet been published on how soon the loan

guarantees will be available.

($1 = 1.3823 Canadian dollars)