Recurrent Expenditure Requirements of Capital Projects : Estimation for Budget Purposes
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 under-funding of maintenance and operatin...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/12/2113665/recurrent-expenditure-requirements-capital-projects-estimation-budget-purposes http://hdl.handle.net/10986/19195 |
| 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
under-funding 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. |
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