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PIARC (World Road Association), founded in 1909 and comprising 125 member governments from all over the world, is the global forum for exchange of knowledge and experience on roads, road transport policies and practices. With consultative status to the Economic and Social Council of the United Nations, the Association is contributing to a stable and sustainable global development of the road and transport sector.

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  4. Term of the Dictionary | funding

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.