EEM2 (TDM & transport services) Ch 6 Funding gap analysis of transport services
Summary
In the case of transport service proposals, service provider costs are compared with the predicted revenue or increase in revenue (where there is a pre-existing service), using a net present value (NPV) methodology to determine whether or not the proposal is commercially viable.
- 6.1 - Funding gap analysis of transport
- 6.2 - Service provider costs
- 6.3 - Service provider revenue
- 6.4 - Net present value of cash flow
- 6.5 - Funding gap
- 6.6 - Sensitivity testing of the funding gap
6.1 - Funding gap analysis of transport
Introduction
In the case of transport service proposals, service provider costs are compared with the predicted revenue or increase in revenue (where there is a pre-existing service), using a net present value (NPV) methodology to determine whether or not the proposal is commercially viable.
Rules
Where the increase in revenue (for an existing service) or total revenue (for a new service) is more than the service provider costs, the project is commercially viable and is not eligible for Land Transport NZ financial assistance.
Where the increase in revenue (for an existing service) or total revenue (for a new service) is less than the service provider costs, a full economic evaluation is necessary to further assess the eligibility for Land Transport NZ financial assistance.
