Funding Infrastructure Project Funding Questions When Funding Term Paper

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Funding

Infrastructure Project Funding Questions

When funding any infrastructure project, there are a number of questions that project managers must be able to ask themselves. The answers to these questions help provide a better foundation for the overall success of the infrastructure project and provide reassurance that the project is running smoothly. Thus, it is important to spell out the three primary questions relating to delivery of public services, what funding mechanism will be used, and finally how much the financing will cost.

Will the public receive effective services from the infrastructure project?

Such a question helps provide justification for the project, especially in regards to investment and appraisal activities. Overall, the question helps direct project managers to make effective decisions regarding the project and how it will serve the community that it is located in. The community is the ultimate shareholder in the situation, and thus this question helps ensure that the primary shareholders within that community are properly being served the appropriate services they need. According to Vickman (2009), understanding how the public will benefit from the services of a project addresses issues regarding regulator constraints.

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There are often issues where regulatory collisions are in conflict, which may have the potential to threaten the benefits of the shareholders and primary users. Understanding how to resolve such conflicts is crucial to increasing overall user benefits. Without properly answering this question, the project could potentially encounter pricing problems when considering net benefits.

What financial mechanism will be used to fund the project?

Understanding how the infrastructure project will be funded is a huge step in delivering the public services desired. This question is incredibly complex, and may require a blended answer of mixed funding mechanisms, depending on the nature of the unique situation and circumstances. Answering this question helps denote key responsibilities to the parties involved in financing the project….....

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"Funding Infrastructure Project Funding Questions When Funding" (2014, June 07) Retrieved May 4, 2024, from
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