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    Question

    Which of the following is a primary source of finance

    for capital expenditure in infrastructure projects?
    A Retained earnings only Correct Answer Incorrect Answer
    B Combination of debt, equity and project-level cash flows (including grants, viability gap funding), long-term bank loans and bonds Correct Answer Incorrect Answer
    C Short-term working capital loans only Correct Answer Incorrect Answer
    D Sale of current inventories only Correct Answer Incorrect Answer

    Solution

    Infrastructure projects, due to their large scale and long gestation periods, are typically financed through a mix of equity, long-term debt, and sometimes government support.

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