 borrowing power (e.g. issuance of bonds); analytical basis for capital/programme expenditures; range and scope of activities supported, etc. Governance of funding mechanism, including: selection and role of board of directors; oversight by government departments; oversight by parliament/ legislature; transparency of reporting/evaluation; amount of information available from official Web site; guidelines for ethics/conflict of interest, etc. The study found four types of transportation infrastructure financing mechanisms: 1. Traditional grant programmes: the mainstay of the public sector, usually of medium-term duration (up to five years) and subject to annual political appropriations control and review. 2. Special-purpose funds: involving dedicated user-pay revenue sources that provide multi-year funding stability and usually imply an indefinite, ongoing commitment - although these involve traditional (bureaucratic/political) governance. 3. Commercial funding agencies: involving some form of privatisation/ commercialisation of the infrastructure and/or the establishment of a quasi-public agency to provide infrastructure funding on a (generally) commercial, self-financing basis (e.g. through repayable loans, revolving fund, user-pay), or long-term public revenue commitment. 4. Innovative financing mechanisms: which, by definition, do not fit the above three moulds, and cannot be characterised in terms of features. INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 4. KEY FACTORS DRIVING THE FUTURE DEMAND FOR SURFACE TRANSPORT INFRASTRUCTURE Some of the desirable features of well-functioning infrastructure funding mechanisms are: Clear objectives, stable multi-year operation, strategic/capital plans and project selection processes. Major user-fee revenue contributions. Strong local stakeholder involvement, government oversight, public transparency and evaluation/audit oversight. Reasonable balance between policy objectives of: a) efficiency, fiscal sustainabilit