A framework is developed for performance-based engineering of transportation infrastructure considering multiple hazards. The framework builds upon the FEMA P-58 methodology for seismic performance evaluation of buildings, but utilizes an event-based approach in a multi-hazard context and considers both structural and downtime losses. The framework is exercised to explore the financial implications of selecting retrofit strategies for an interdependent civil infrastructure system subjected to multiple hazards. A bridge-roadway-levee system, subjected to earthquake and high-water (storm surge) hazards, is analyzed and retrofit strategies for the levee and bridges of the system are evaluated in terms of risk metrics commonly used in the field of financial engineering for portfolio optimization. The risk metrics include the average annual losses, value at risk or probable maximum losses, conditional value at risk, and worst-case losses. It is shown that an optimal retrofit strategy depends upon the metric(s) being used for risk evaluation. It is also quantitatively argued that various stakeholders, including the owners, policy makers, and insurance companies may perceive risks differently, use different metrics for risk evaluation, and come up with different retrofit strategies for risk mitigation of the same system. Moreover, scenarios are discussed where privately held capital could potentially be invested in retrofitting civil infrastructure systems.