viability gap funding

Viability Gap Funding (VGF) is a financial support provided by the government or other agencies to bridge the gap between the project's total cost and the revenue it can generate. It helps ensure that essential infrastructure or public service projects, which might not be immediately profitable, can still be developed and operated effectively. Think of it as a subsidy that makes a project financially viable, encouraging investment in areas like transportation, healthcare, or education, where public benefit is high but commercial returns are uncertain.