Guidebook on Capital Investment Planning for Local Governments

This guidebook on capital investment planning is designed to help local government (LG) officers; managers of municipal utilities and service companies; and the staff of donor agencies, particularly in developing countries, to improve their capital investment decisions to build infrastructure and enhance service delivery to their citizens and businesses, particularly to the urban poor.

Urbanization is growing rapidly. For the first time in history, more than 50 percent (3.3 billion) of the world’s population reside in urban areas. By 2030, this number is expected to grow to almost 5 billion. Over 90 percent of this urban growth is taking place in developing countries.

This unprecedented growth creates a pressing demand for LG in developing countries to further invest in infrastructure and other assets to support economic and social development. Such investments require capital that often far exceeds available resources. The unavailability of capital, in turn, puts a premium on the need for LGs to build capacity to appraise and prioritize their investment decisions.

Full Publication

Table of Contents 
(the links below are to PDF files)

Introduction

Chapter 1. Overview: Capital Investment Planning at Local Governments and Its Links to Other Activities

Chapter 2.  Inputs to the Investment Planning Process

Chapter 3.  Assessing Local Government Financial Capacity

Chapter 4.  Steps in the Investment Planning Process

Chapter 5.  Implementing and Monitoring Investment Projects

Chapter 6.  Sustainability and Evolution of the Investment Planning Process

Chapter 7.  Case Studies: The Cities of Nis, Serbia and São Paulo, Brazil

Appendixes

1. Facts on Life Cycle Costing
2. Example of Comprehensive Infrastructure Replacement Policy, City of Shoreline, Minnesota, US (population 27,000)
3. Sample Forms for Budget Analysis
4. Sample Debt Policy
5. Sample Policy for Capital Investment Planning
6. Samples of Capital Investment Rating
7. Sample Capital Investment Planning Budget Calendar
8. Sample Capital Investment Project Requests
9. Sample Checklist for Project Request
10. Review What Project Lenders or Grantors Can Request
11. Property Maintenance Guidelines
12. References and Useful Resources

The guidebook was developed with support from the Cities Alliance and in collaboration with the Urban Institute, which has extensive international experience in these issues.