A four-year Municipal Investment Plan for Environmental Infrastructure has been prepared for the City of Lutsk (Ukraine). The project was implemented by a team of Ukrainian, Polish and US consultants under the supervision of the EAP Task Force Secretariat. Financial support for the implementation of this project was provided by Denmark.
The development of the plan began by compiling a list of standardised project proposals to be included in the investment plan. Investments data were entered into a software application, a model successfully used in Polish cities and specifically tailored to Ukrainian conditions. Twenty-eight investment projects with precisely defined costs and effects of implementation were entered into the system in the municipality of Lutsk. The computer programme is used to forecast the city budget over subsequent years based on the multi-year financial plan. It also helps facilitate decisions on whether to continue implementation of individual capital projects or not. Using this programme, the city may develop many scenarios of implementation plans depending on grants or loans received as well as other factors.
The City Board and consultants developed a method for evaluating investment projects recommended for inclusion in the investment plan. The computer software developed for the city will be widely disseminated in Ukraine and in other EECCA municipalities.
The lessons learnt from the demonstration project in Ukraine were used to develop a toolkit for Multi-Year Investment Planning (MYIP) in the Ukrainian Cities. It contains computer tools, user’s manuals and detailed reports from the pilot implementation of MYIP in the City of Lutsk in Western Ukraine. The toolkit was developed by adjusting the best available tools to fit Ukrainian local government needs, regulatory and institutional framework. A workshop to discuss the results from the project was organised in Donetsk, on 28 October 2003.
The toolkit is available in Ukrainian and English. This toolkit can be used by municipal officials and consultants to develop 4-6 year rolling investment plans for municipal infrastructure, including water and environment. The computer tool helps forecast municipal revenue available for investments and prepare capital and operational budgets for infrastructure development. It supports the decision making process on municipal investments through the system of evaluation and ranking of individual projects. Multiyear investment plans can be prepared as budget documents for approval by City Councils in order to improve the investment and borrowing capacity of a municipality.
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