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    Question

    In a Public-Private Partnership (PPP), what is the

    purpose of Viability Gap Funding (VGF)?
    A To provide subsidies for private enterprises Correct Answer Incorrect Answer
    B To attract private sector participation in projects that are economically justified but not financially viable Correct Answer Incorrect Answer
    C To reduce the project cost for the public sector Correct Answer Incorrect Answer
    D To finance government-only projects Correct Answer Incorrect Answer
    E To eliminate the need for private investment Correct Answer Incorrect Answer

    Solution

    Viability Gap Funding (VGF) is designed to support PPP projects that are economically justified but lack financial viability. It provides a capital subsidy to make such projects attractive to private sector participants.

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