Chris A. Hale

Document Type

Conference Paper

Publication Date


Subject Area

economics - appraisal/evaluation, economics - capital costs, economics - finance, economics - revenue, economics - value capture, organisation - governance, organisation - management, policy - sustainable


project finance, mass transit, value capture, joint powers, PPP


In major cities around the world, the appetite for better mass transit systems is strong – with many locations needing to enhance both capacity and coverage to address population growth and increased transport movement. Available resources from traditional government sources are limited, however. In this paper, several potential ‘alternative’ project financing structures will be reviewed – mainly focusing on PPPs – but also briefly taking-in ‘Joint Powers’ and other arrangements operating under a ‘blended’ financing model.

The paper seeks to analyse and clarify the attributes, pitfalls, and potential benefits of these different arrangements, drawing on the documentation and stated aims of several recent and current worldwide exemplars. A literature review and summary case study approach is adopted - with reference to mainstream sources on mass transit capital financing and planning. Cross-comparison of the different approaches adopted in various exemplars is engaged.

The paper then draws interpretation of the wider applicability of these project options for future mass transit delivery efforts – and touches on the conditions, criteria, and policy settings under which they might be positioned to deliver effectively.

The paper addresses substantive, current and emerging issues around the ability of transit stakeholders in growing cities to surpass the limitations of prevailing project financing cultures and constraints.