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Recurrent expenditure requirements of capital projects : estimation for budget purposes

Author: Ron Hood; David Husband; Fei Yu; World Bank. Europe and Central Asia Region. Poverty Reduction and Economic Management Unit.
Publisher: Washington, D.C. : Poverty Reduction and Economic Management Sector Unit, Europe and Central Asia Region, World Bank, [2002]
Series: Policy research working papers (Online), 2938.
Edition/Format:   eBook : EnglishView all editions and formats
Summary:
This paper examines the issue of estimating recurrent costs associated with capital projects in the investment budget. It is intended to help overcome budget planning problems which give rise to the chronic underfunding of maintenance and operating costs typical in some developing economies. The objective is to provide guidance in the preparation of budget submissions so that information on the future recurrent cost  Read more...
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Material Type: Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Ron Hood; David Husband; Fei Yu; World Bank. Europe and Central Asia Region. Poverty Reduction and Economic Management Unit.
OCLC Number: 51630009
Notes: Title from title screen as viewed on February 10, 2003.
"December 20, 2002."
Description: 1 online resource.
Details: Mode of access: World Wide Web.
Series Title: Policy research working papers (Online), 2938.
Responsibility: Ron Hood, David Husband, and Fei Yu.

Abstract:

This paper examines the issue of estimating recurrent costs associated with capital projects in the investment budget. It is intended to help overcome budget planning problems which give rise to the chronic underfunding of maintenance and operating costs typical in some developing economies. The objective is to provide guidance in the preparation of budget submissions so that information on the future recurrent cost implications of today's capital spending is quantified in a way that supports the authorities in making project selection and budget decisions. The paper is in three parts. The first part outlines some concepts and definitions involved in measuring recurrent costs. The second part provides stylized examples of individual projects. And the third part presents some rough empirical guidance drawn from a sample of actual investment projects. This paper--a product of the Poverty Reduction and Economic Management Sector Unit, Europe and Central Asia Region--is part of a larger effort in the Bank to improve the management of public finances.

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