The Social Cost-Benefit Analysis as Estimation Methodology: Case Study for Infrastructure Projects

  • Samanta Petohleb Černeha IVS – Istarski vodozaštitni sustav d.o.o., Croatia
  • Maja Klun University of Ljubljana, Faculty of Administration, Slovenia
  • Srečko Devjak University of Ljubljana, Faculty of Administration, Slovenia
Keywords: cost-benefit analysis, local public investments, social value of the project

Abstract

Local public investments are financed by budget funds (state, county, local), debt funds (loans or credits, municipal obligations) and non-debt funds (users’ charges and methods and techniques of public-private partnership). In this paper some theoretical issues about cost-benefit analysis (CBA) and advantages and limitations in applying it are discussed. CBA is used in the public sector in making decisions where it is relatively easy to determine the costs, but the expected benefits can be difficult to express in monetary value. To ensure an equitable quantity of financial sources according to negative difference between inflows and outflows is one of the most important goals of the project. Based on theoretical framework about CBA, a calculation was made on social profitability of the project Public sewerage and water protection in the Region of Istria. The main conclusion of this paper is that if the project achieves the social profitability, net profit and high economic internal rate of return, it is possible to accept the realization of the project.
Published
2014-05-09
How to Cite
Petohleb Černeha, S., Klun, M., & Devjak, S. (2014). The Social Cost-Benefit Analysis as Estimation Methodology: Case Study for Infrastructure Projects. Central European Public Administration Review, 11(2), pp. 57-76. https://doi.org/10.17573/ipar.2013.2.a03
Section
Articles