The Capital Investment Plan (CIP) isan integral part of the process of “Preparation of Urban DevelopmentPlans and Regulations for the Local Authority, ” which aims at i) identifyinghigh priority investments projects needed over the next five years, ii) providinga financial assessment of the capital, and iii) developing a realistic strategyfor financing investments and operations. Capital InvestmentPlan (CIP) comesas a valuableinstrument in the hands ofthe local administration for leading andmonitoring its investment policyand in the same time monitored continuously by citizensthrough the implementation of planned targets. CapitalInvestment Plan, is medium term plan more than 5 year time, identifies all capital investmentswhich will becarried out by the local unit withinthis period, the time of their accomplishment and source of financingfor any investment.
The real challenge is prioritization process, which isbased in three main steps.i) Formulation of CIP projects;ii) Ranking of CIP projects;iii) PrioritizationThe formulation of CIP projects was drawn throughcontinuous consultation throughout the planning process. Theinvolvement of municipal staff in the planning process is regarded as importantin improvement of the project, by drawing on the local expertise and increasingthe feasibility of each project.
1. IntroductionInvestments ininfrastructure are considered indispensable to improve living in the long run timeand to serve an efficient private economy. In the project area, the currentstate of the majority of infrastructures demands extensive initial investmentand long term management and maintenance.
Financing these investments, most ofwhich often refer to local public goods with little or no revenue earningpotential, is a major challenge which requires more efficient use of existingresources, redesign of fiscal mechanisms and devising of innovative ways ofincreasing revenues. The CIP itself, which is a form of strategic planning, canbe seen as a tool to be used by local units for attracting funding from donorsand private investors. Another aspectaddressed through the CIP is linked with the efficient allocation ofinvestments. It is commonly known that public investments in infrastructureneed to be coordinated in order to avoid duplication, overlap, conflictingworks etc.
Territorial planning provides a suitable framework for thiscoordination. This concern is built into the methodology of the CIP. The formulation of CIP projects wasdrawn through continuous consultation throughout the planning process and hastaken into consideration the following parameters building on prior steps ofthe project: § Identification ofcurrent state of infrastructure deficiencies and problems and assessment ofexisting local unit capacities;§ Achievement of the Unit’sVision, Goals and Objectives, and;§ Coherence withspatial concept of future urban growth.