According to plans, the Northern Corridor shall be implemented through public-private partnership scheme (PPP). PPP projects are designed so that initial financing is raised or provided by the private partner and then, over a number of decades, the public partner returns the invested money to the private partner. Financing scheme for the NTC project foresees that the public partner starts repaying the investment after the successful completion of the project (construction of the Corridor) only after the Corridor is put into operation and pays full amount under the condition that Corridor is run and maintained according to agreed standards. The best suitable financing model is being developed. For more information please visit: http://www.ppp.gov.lv/.

Financial aspects of PPP advantages: financial researches show that PPP schemes are much more efficient in terms of total costs throughout the project life cycle. Public expenditure in case of the NTC infrastructure construction and maintenance are significantly lower with PPP than in the case of traditional public procurements. Moreover, PPP schemes give opportunity to optimise construction schedules and costs.

Legal aspects of PPP advantages: if project is implemented on basis of a PPP scheme, municipalities do not have to meet lending restrictions. This is a 30 year project, not a 5 year project as usual in case of public procurements. The risk distribution in case of a PPP is much more favourable to a public partner, then in the case of a traditional public procurement.

TEN-T (European transport network) 2005 programme provided funding for the Phase 1 and 2 of the project (total costs € 7.6 million); EU co-financed 50% of costs or € 3.8 million;

TEN-T (European transport network) 2007 programme provided funding for the Phase 3 and 4 of the project (total costs € 11 million); EU co-financed 50% of costs or € 5.5 million;Riga City Council plans to attract € 90.0 million from the Cohesion Fund for construction of the Northern Corridor.