Recurrent Expenditure Requirements of Capital Projects : Estimation for Budget Purposes

Hood, Ron ; Husband, David ; Yu, Fei

World Bank, Washington, DC

关键词: ACQUISITION;    ACQUISITION COSTS;    ADB;    AGRICULTURE;    AUDIT REPORTS;   

DOI  :  10.1596/1813-9450-2938
RP-ID  :  WPS2938

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines the issue ofestimating recurrent costs associated with capital projectsin the investment budget. It is intended to help overcomebudget planning problems which give rise to the chronicunder-funding of maintenance and operating costs typical insome developing economies. The objective is to provideguidance in the preparation of budget submissions so thatinformation on the future recurrent cost implications oftoday's capital spending is quantified in a way thatsupports the authorities in making project selection andbudget decisions. The paper is in three parts. The firstpart outlines some concepts and definitions involved inmeasuring recurrent costs. The second part provides stylizedexamples of individual projects. And the third part presentssome rough empirical guidance drawn from a sample of actualinvestment projects.