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Title: INNOVATIVE FINANCE: FRAMEWORK FOR DECISION MAKING
Accession Number: 00818784
Record Type: Component
Availability: Find a library where document is available Abstract: Public agencies must recognize a number of trade-offs in choosing between funding projects on a pay-as-you-go basis and financing them with debt. Often bond financing will allow an agency to accelerate project completion, which has the advantages that any net benefits will be realized sooner and certain inflation costs will be avoided. In the case of Colorado's GARVEE program, these savings proved substantial, making bond financing an excellent decision. On the other hand, bond financing obliges the agency or project sponsor to pay interest cost and places a prospective claim on future revenues. The use of State Infrastructure Bank (SIB) financing raises many of the same questions, since potential borrowers must decide whether the interest expense on borrowed funds is worthwhile and SIB managers must structure terms that safeguard economic efficiency. As noted by B. Pinkston of the Congressional Budget Office, transportation projects usually offer a combination of private and public benefits. The blended quality of the benefits makes it even more complicated for decision makers to rely on a simple benefit-cost analysis in choosing among alternative financing strategies.
Supplemental Notes: Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
Monograph Title: SECOND NATIONAL CONFERENCE ON TRANSPORTATION FINANCE, SCOTTSDALE, ARIZONA, AUGUST 20-24, 2000 Monograph Accession #: 00818781
Language: English
Corporate Authors: Transportation Research Board 500 Fifth Street, NW Authors: Clary, LDugan, HMarx, PDralle, SPinkston, EPagination: p. 33-40
Publication Date: 2001
Conference:
Second National Conference on Transportation Finance
Location:
Scottsdale, Arizona ISBN: 0309072107
Media Type: Digital/other
TRT Terms: Uncontrolled Terms: Subject Areas: Economics; Finance; Transportation (General); I10: Economics and Administration
Files: TRIS, TRB
Created Date: Oct 8 2001 12:00AM
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