Financing urban and intercity transport in the North

25 June 2012  •  Author(s): Stefan Fridriksson, Senior Manager, Lending Department, Nordic Investment Bank

Cities and large urban areas usually allocate large proportions of their budgets to fund the construction of the vital transport infrastructure, often in combination with borrowing. Funding infrastructure and public transport projects through the budget requires balanced, economic and ecological long-term planning, including factors such as availability and utilising land and space, estimates of population growth, general economic development and environmental requirements.

In the same way, planning the financing of transport investments through borrowing needs to take into account the life-span of the given infrastructure and equipment. Financing investments with long-term loans is often an indispensable means in urban financial planning, especially when necessary infra – structural backlogs become insurmountable, and yes, also during times with diminished budgets. Planning is the key for successful investments, where the will to borrow and the ability to repay the loans go hand in hand, creating the necessary credibility.

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