The GAP Institute has published a report for "Sustainability of capital investments in municipalities".
According to GAP, a significant number of capital projects have never been operationalized or have not achieved the planned result.
In the GAP report, it is stated that millions of taxpayers' money were spent on the construction of various facilities that were not used and in some cases the built facilities were damaged due to their non-use.
"These cases, in addition to proving a lack of proper investment planning, are also the result of demographic changes and, consequently, the lack of need for their use; non-maintenance and damage to projects after completion of investments; property disputes; the lack of sufficient funds to complete the project and in some cases the inability of municipalities to accept regularly paid staff in the management or operation of certain facilities", says GAP.
GAP has published capital projects in municipalities that have never been operational.
GAP has come up with some recommendations regarding this issue.
GAP recommendations
• During the completion/amendment of the Law on Local Government Finances, an article must be inserted which obliges municipalities to carry out feasibility studies for projects worth over one million euros.
• Mayors of municipalities ensure that procurement officers and contract managers have full knowledge of legal and technical procedures.
• Municipal officials must ensure that there are no property disputes before the start of the tendering phase and there is a general consent of the community for the area where the capital project is expected to be carried out.
• Municipal leaders ensure that the identified interest group is aware of the details of the project so that they have the opportunity to monitor whether the economic operators are performing the works according to the contract and according to the deadlines.
• Completed and unused capital projects should be redeployed to some other need of community members. This redestination must be done in coordination and with the consent of the community.
• Chairmen and their teams must make accurate planning of budget expenditures related to the entire capital project. This means entering tendering procedures only when there are funds for the project and higher responsibility in the timely execution of payments to operators. To avoid delays or deviations from the contract that could lead to court proceedings and failures or project extensions.
