Term of the Road Dictionary
funding
- Language : PIARC Road Dictionary / English
- Theme : Financial and Legal Tools Finance and Procurement Economics and Finance
- Definition : Provision of financial resources by the public sector, aid donors, users (taxpayers, and toll payers) and/or other beneficiaries for an investment project. Notes: 1. Funding is provided by a government, a similar public-sector body, aid donors and/or users (taxpayers, and toll payers) in order to procure an infrastructure or a service. Other beneficiaries may also contribute to funding if they derive value from the investment (for example, a land owner contributing to the cost of building a new road in the expectation that the value of the land will increase when the new road is open). 2. For government-funded projects there is not usually an expectation that the funding will be repaid as there would be an expected benefit to taxpayers or other beneficiaries. Even when there is an expectation, usually it will be repaid after many, many years with no or little interest. 3. In the specific case of a road procured as a PPP, the private partner having contributed to the construction and operation of the road should ensure sufficient funding from the public sector and/or users for his contribution to be repaid.