Financing infrastructure investment projects

In this paper, the issue of funding long-term infrastructure investments is discussed. When selecting the way of funding such investments, local authorities should take into account high capital intensity, risks and a long project life cycle. It is crucial to consider that investments in infrastructure are characterized by not only long lead time, but also by long lifetime of built facilities. The consequences of the decision about choosing the funding sources concern both the current and future generations. The main purpose of this paper is to indicate the rules of selecting funding sources for long-term investment projects, regarding solidarity between generations.