By William F. Fox
1994 city administration Programme coverage Paper #17 paperback via the area financial institution
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Extra resources for Strategic options for urban infrastructure management
Sample text
In some cases the specific service sought by users, as with the low-income residents in the previous paragraph, may be met without large capital investments. For example, a warning sign at each end of a narrow bridge may be an acceptable alternative in low-volume areas to the costly option of widening the bridge. Demand exists for six different aspects of infrastructure services: accessibility, capacity, diversity, quality, condition, and time. Accessibility refers to the location of services relative to the population.
Skilled staffs with sufficient regulatory authority must be developed. Regulations that inhibit effective business practices should be discarded. Where possible, regulations that limit competitive pressures, such as those preventing competition with public service providers, should be eliminated. The choice of whether to use public or private sector producers should be made after consideration of the effects on quality and reliability of services, potential for corruption, and an analysis of costs that include contracting, regulating, and monitoring private firms.
Similarly, a project could be financially viable, as when the political power exists to obtain public sector financing, although economic criteria indicate it is undesirable. Despite this bifurcation in practice and in this report, we must recognize that a poor national or municipal finance system can lead to inadequate infrastructure investments from an economic perspective. Desirable services may remain unprovided because sufficient financial resources cannot be obtained, so a strong financing system is an essential element to making good infrastructure decisions.