Who normally pays for the development costs of an infrastructure project?

Government (provincial or municipal) typically pay the majority of development costs for a public transit project, including feasibility and planning studies, initial design and permitting. Under a P3, this work establishes a “reference design” which is then put out to the market to tender. Government typically also funds an honorarium payment to unsuccessful bidders for the project to offset some of their costs of bringing design up to the level at which they can submit a committed bid.