This Railway Financing Online Course aims to provide an easy comprehensible overview of railway financing methods and engagement with the private sector. The three modules of the course thoroughly explain the difference between funding and financing, the funding gap and how it can be addressed, financing types and financial instruments, and the role of risk and risk mitigation. These issues are explained using examples from the railway sector with links to more detailed readings on key topics.
The course should be particularly useful to railways or those supporting railways seeking to attract private sector financing to understand the policy actions needed to prepare railways for private sector financing as well as the mechanism that railways can use to attract this financing.
Week 1: Introduction to Funding and Financing
The first module will introduce the concepts of funding and financing and how they relate to one another. It will also introduce the concept of a funding gap.
Week 2: Financial Instruments
The second module will explain the differences between sovereign, corporate and PPP financing and introduce typical financing instruments including loans, stocks, bonds and leasing.
Week 3: Risk and Risk Mitigation
The third module will discuss risk and approaches to reduce risk to make investment in railways more attractive to the private sector.