The impact of financing strategies on efficiency of a municipal development project
The impact of financing strategies on efficiency of a municipal development project

Summary/Abstract: The purpose of the paper is to provide an insight into local government’s investment financing determinants and into the impact of financing strategies on financial efficiency of a development project. The first part of the research covers literature background. The second part includes description of the property under development, selection of financial strategies, and evaluation of their impact on project financial efficiency from the local government’s point of view. The main idea behind this research is that project financing strategies must be flexible, but subordinated to municipality financial strategy, and that considering financial circumstances new financing models for municipal development projects are needed. The proposed framework supports ex-ante investment evaluation from the perspective of investor. The model may be also an example of how to evaluate financial results of local planning.

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