Can't (1) and (2) be solved by additional $1b to cover "cost" the Government might have? Just make it easier for them to move it through legislature, mountains, and such ;-)
You can already get the same effect by having a private investor agree to "pay back" the Government if there are really private investors who want to do that.
It's called a "public-private partnership" and it's not completely impossible but it does require some person or persons to cough up the cash.