Funding Scheme Performance. The first issue related to funding is the trivial question of whether the funding schemes (revenue streams and remuneration) available are sufficient covers the costs of the project such that the project is financially viable. The cost recovery ability has significant variations per mode of transport. Beyond the ability of covering the costs of the transport infrastructure project (construction, operation and maintenance), the funding schemes that are used may have implications on performance aspects of the project itself (firstly, the ability to make the project happen, and secondly, the ability make it properly fulfill its objectives) or wider economic, social and environmental impacts. The internal performance factors consist of two related issues: incentives and risks. The way the different actors of the Project are being funded may cause specific incentives in relation to their profit seeking behavior as long as they are able to influence through their actions the amount of income that they receive. On the risks side, different funding sources may imply different levels of uncertainty of the income that will be actually generated, influencing the risk of revenue of the actors that will finance the project and the related risk premium. Funding, or revenue, risks and incentives directly affect business cases in their capacity to be at the same time appealing to investors and to provide the desired quality of the project. External performance factors which are related to funding schemes cover essentially three aspects: economic efficiency of the usage of transport infrastructures (allocative efficiency), fairness and acceptability and environmental cost internalization. External performance factors reflect the extent to which the project is delivering desired wellbeing outcomes that are outside the framework of the business model. An additional aspect, which may or not be relevant within the sphere of the business case is the costs of collecting the funding (revenues). These costs may be transaction costs related to the collection of the revenue, or economic efficiency costs related to the market inefficiencies that are potentially caused by price distortions (of which the above mentioned infrastructure allocative efficiency is a specific and particularly severe case). When the funds in question come from the public sphere (and are thus external to the business case), these costs are commonly known as marginal costs of public funding. These performance f...
