External funding sources

Alternative sources of funding to support either the operating or capital costs of urban transport at the local level can include parking charges, road pricing or congestion charges, employer contributions, and land development taxes or value capture. Where such charges are levied with a clear accountability and purpose of allocation, they can attain strong political support.

Public / private partnerships may also be employed to finance system development with private investors compensated from consequent cash-flows. In addition central government funds may also be applied, in due recognition of the economic importance of urban areas, supported by development partners as appropriate. In some cases, these funds can recognize the explicit or implicit subsidies provided to other modes, or be used to ameliorate indirect costs of operation such as pollution or road casualties.