Sourcing Finance – Covering the costs

Challenges

Best Practice Solutions

Knowledge of Funding Sources and Interaction with Funders:

  • Knowing and connecting possible funding sources
  • Convincing funders
  • Timeliness
  • Making sure that interactions between different sources of funding do not interfere with each other
  • Weaving purchase of new buses into routine fleet investment

 

Politics:

  • Changes in/uncertainty regarding the political situation/agenda
  • Competition from other zero-emission buses (BEBs)
  • Research funding sources well and ensures their criteria (goals/timelines/limits) align with your project; read the terms and conditions of grant funding thoroughly and seek legal support to do so
  • Sources generally include a component of investment from the PTO, or the PTA allocated to normal purchases; useful additional sources are government (all levels) low/zero-emission and energy programmes
  • Connect with funders informally or find good intermediaries or experts

 

  • Present a thorough business case to show that you are serious about your project
  • Service funders well; never assume reliable, lasting commitment
  • Consider working with another site to seek funds jointly;
  • Consider employing experts to seek & prepare funding proposals

 

  • Be aware there may be issues that arise:
  • from providing subsidies to private organisations (e.g. PTOs)
  • about the ownership of assets purchased with funder input and
  • in trying to coordinate with the investment cycle of PTOs
  • Try to separate funding sources into separate sub-projects but also try to avoid feeding funds from different sources into the one item (e.g. source 1 = FCBs, source 2 = HRS, rather than sources 1 and 2 = FCBs, sources 3 and 4 = HRS)
  • Consider LCC to estimate the avoided external costs via savings of emissions of GHG, NOx and particulate matter and strengthen your case;  there is information available to help quantify external costs (see Table 2‑3)