Which financing method is least likely to attract private investment?

The pay-as-you-go financing method is least likely to attract private investment because it relies on funding capital projects through current revenues rather than borrowing or external financing. This approach often utilizes available operational funds to finance projects directly, which typically results in limited capacity to undertake large-scale developments that would require significant capital outlay.

Private investors are generally more attracted to financing methods that provide them with a viable return on investment, such as revenue bonds or joint ventures, where their funding is tied to the revenue generated by a project. Unlimited tax general obligation bonds, while publicly backed and typically yielding tax-supported revenue, also attract investment due to their perceived lower risk given the government’s commitment to levy taxes if necessary. In contrast, pay-as-you-go cannot guarantee the same level of return or risk mitigation that these other financing options present, making it less appealing to private investors.