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Build America Transportation Investment Center (BATIC) Institute: An AASHTO Center for Excellence
Build America Transportation Investment Center (BATIC) Institute: An AASHTO Center for Excellence

Financing

Other Finance Mechanisms

Two mechanisms for a public agency to compensate a private entity for their project responsibilities (design, construction, finance, operations and/or maintenance) under a concession arrangement are availability payments and shadow tolls.

In this section

  • Availability Payments
    Availability payments are made to a private concessionaire by a public project sponsor based on project milestones or facility performance standards in exchange for particular services.
  • Shadow Tolls
    Shadow tolls are per-vehicle or per-vehicle-mile fees paid by a state or local agency or authority to a private concessionaire as reimbursement for particular services.