Toolkits for Urban Transport Development - UNEP

conduciveness towards private investment in developing / managing infrastructural projects. This will
also help civic authorities to evaluate the confidence level of private players in investing its funds in
developing and or managing public amenities. Based on the state’s current trends, the city civic
authorities and state government officials should be made aware of PPP/private funding as alternative
source for developing urban transport infrastructure during stakeholder consultations.
Task 6: Listing and Sensitization to Innovative Financing Options for Developing Urban
Transport Infrastructure.
Sub-Task 1: Sensitization to market-based financing options. During the stakeholder consultations,
the civic authority and state government officials should be made aware of various market based tools
such as issuance of taxable and tax free municipal bonds, pooled financing, and other mechanisms as
alternative sources for financing urban transport.
Sub-Task 2: Sensitization to PPP as financing options. During the stakeholder consultations, the civic
authority and state government officials should be made aware of various PPP options such as
management contracts, BOT and other possibilities as alternative sources for financing urban
transport.
Sub-Task 3: Sensitization to climate financing. During the stakeholder consultations, the civic
authority and state government officials should made aware of various climate financing options such
as CDM, NAMA financing and carbon credits as alternative sources for financing urban transport.
Sub-Task 4: Sensitization to capturing indirect user benefits and pricing. During the stakeholder
consultations, the civic authority and state government officials should be made aware of capturing
indirect user benefits and pricing such as land value capture, TOD, transferable development rights,
financing from increases in FAR/FSI, congestion pricing, establishment levies, etc.
Level 2: Suggestions for Financing Options for Project Implementation
Based on review of the civic authority’s existing resource base and preparedness, the CMP should
suggest project and city specific financing options for the projects identified in the CMP. These
should take into account the options or combination of options, but not limited to the options
mentioned in the Table 1. The CMP should always encourage the civic authority to fund their
transport infrastructure projects through innovative and self-sustainable means of financing, such as
PPP options, issuance of bonds etc. Various financing options for urban transport infrastructure are
listed in Table 1, details of which are described in Annexure 1.
Further, as the CMP is a vision document, the projects identified in the CMP should be detailed by
preparing Detailed Project Reports (DPR) and/or Feasibility Reports for each individual project. The
CMP should also suggest funding sources for preparation of DPRs and Feasibility Reports. Various
financing options for project development (preparation of DPR/Feasibility Report) are described in
Annex 7.
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