An organizational and economic mechanism for planning the development of systems that are part of the urban utility infrastructure

Abstract

The systems that comprise the utility infrastructure are a structural element of the housing and utilities sector; they make an essential contribution to the quality of life in municipalities. The development of these systems is particularly relevant now, since the utilities sector is characterized by the high depreciation of fixed assets and the limited profitability of economic activities of organizations in this sector. A combination of the above-mentioned circumstances creates industry-wide problems that hinder the effective operation of public infrastructure systems. The analysis of statistical information has shown that approaches to the development of housing and utility services are insufficient for the renewal and modernization of public infrastructure systems, so there is a practical need to develop innovative approaches to their management. This article focuses on an integrated approach to the development planning of utility systems with regard for the strengths and weaknesses of traditional forecasting tools. Today, the main planning tool is a set of programmes on the integrated development of utility infrastructure systems; however, this tool has a number of disadvantages, including the lack of performance indicators applied to the implemented activities, the predominance of general goal formulations, an unclear relationship between specific projects and programme results, etc. In order to clarify the requirements for the selection of development projects on infrastructure systems, an economic and mathematical model has been designed that allows for the selection of measures based on objective criteria, that will ensure the generation of the most effective programme on the development of utility infrastructure systems in the cities. This economic and mathematical model can be used to develop an organizational and economic planning tool that allows to eliminate the drawbacks of traditional tools.