- Dictionary : PIARC Road Dictionary/ English
- Theme : Financial and Legal Tools / Finance and Procurement / Economics and Finance
- Definition : Provision of the capital to cover the cost of an investment project.
1. Capital is sourced from a variety of mechanisms: Government budget allocation, grant by aid donors, equity provided by shareholders, or loan provided by investors.
2. Financing is provided in the expectation that the equity or debt will be repaid, along with a return on capital commensurate with the risks involved, over a specific period through payments by the users (taxes, tolls) and/or by the public sector.
3. In the case of a road project procured as a PPP, financing is totally or partly provided by the private partners involved and repaid with the return on investment.
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