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1 Introduction
Value Capture in Transportation
Government invests in transportation infrastructue; Development accelerates and property values increase, Business activity and employment grow; Net worth of property owners increases, Retail sales grow; Tax revenue grows; A portion of tax revenue is re-invested in infrastructure
Introduction
Risk is defined as the possibility of deviation in the actual project outcome from the expected outcome (i.e., benefits/ costs to each project stakeholder), including:
- Unexpectedly good outcomes
- Unexpectedly bad outcomes
Source: Irwin, T. (2007). "Government Guarantees: Allocating and Valuing Risk in Privately Financed Infrastructure Projects." The World Bank, Washington, DC.
Value capture, real estate and economic development, and risk are intrinsically intertwined, driven by a diverse range of factors
The Value Capture Risk Assessment Primer
Assessing and managing risks associated with value capture in transportation funding is critical to project success.
The primer aims to increase the understanding of risks associated with value capture funding for transportation:
- What are typical risks associated with different value capture techniques?
- How to assess value capture risks to build resiliency into a project’s funding strategy by incorporating means to cost-effectively deal with potential deviations in the ability to:
- Generate the value expected
- Capture or use the value generated
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