Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia
Unintentional implicit subsidies (hidden costs) to public utilities can be considered an illegitimate claim on public resources. This paper examines the role and sources of hidden costs in the energy and water sectors in the Europe and Central Asia (ECA) region. It reviews available data and introdu...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/08/6980563/measuring-financial-performance-infrastructure-application-europe-central-asia http://hdl.handle.net/10986/9295 |
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okr-10986-92952021-04-23T14:02:41Z Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia Ebinger, Jane O. AFFORDABLE WATER AGRICULTURE APPROACH ASSETS AVAILABILITY BENCHMARK BENCHMARKING BILL COLLECTION BOSNIA HERZEGOVINA CAPITAL COSTS COLLECTION EFFICIENCY CONSUMER GROUPS CONSUMERS CONTINUITY OF SERVICE COST OF WATER COST RECOVERY COST-RECOVERY COST-RECOVERY PRICE COST-RECOVERY PRICES CUBIC METER CUBIC METERS CUBIC METERS OF WATER DEBT DECENTRALIZATION DEFLATORS DISTRIBUTION LOSSES DISTRIBUTION NETWORK DOMESTIC CONSUMPTION DOMESTIC ENERGY DOMESTIC ENERGY PRODUCTION DOMESTIC SUPPLY EAST EUROPE ECONOMIC COOPERATION ECONOMIC CRITERIA EFFLUENT CHARGES ELECTRICITY ENERGY PRODUCTION ENERGY SAVINGS ENERGY SECTOR EXPORTS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT HIDDEN COSTS INCOME INTERNATIONAL BENCHMARKING LOCAL AUTHORITIES Unintentional implicit subsidies (hidden costs) to public utilities can be considered an illegitimate claim on public resources. This paper examines the role and sources of hidden costs in the energy and water sectors in the Europe and Central Asia (ECA) region. It reviews available data and introduces a model-the Hidden Costs Calculator-that can be used to quantify the burden on governments of infrastructure policy and implementation decisions. This simple-to-apply model provides insight into three key components of hidden costs that affect infrastructure-poor bill collection rates, excessive losses due to inefficient operations or theft from the networks, and tariffs set below cost-recovery rates. The major advantage of this model is that, using existing data, it can provide a single measure for hidden costs that can be easily calculated, tracked, and reported. Therefore it can monitor and benchmark trends across sectors and countries without extensive or costly data collection. The model compares the difference between actual revenues and revenues that could be anticipated in a well-functioning system operating with cost-covering tariffs, bills paid, and losses normative for networks of a certain age and design. The underlying premise is that quantifying the order of magnitude of each component of hidden costs has potential for strengthening infrastructure policy dialogue and influencing decisionmakers who allocate scarce budgetary resources. 2012-06-26T21:04:12Z 2012-06-26T21:04:12Z 2006-08 http://documents.worldbank.org/curated/en/2006/08/6980563/measuring-financial-performance-infrastructure-application-europe-central-asia http://hdl.handle.net/10986/9295 English en_US Policy Research Working Paper; No. 3992 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AFFORDABLE WATER AGRICULTURE APPROACH ASSETS AVAILABILITY BENCHMARK BENCHMARKING BILL COLLECTION BOSNIA HERZEGOVINA CAPITAL COSTS COLLECTION EFFICIENCY CONSUMER GROUPS CONSUMERS CONTINUITY OF SERVICE COST OF WATER COST RECOVERY COST-RECOVERY COST-RECOVERY PRICE COST-RECOVERY PRICES CUBIC METER CUBIC METERS CUBIC METERS OF WATER DEBT DECENTRALIZATION DEFLATORS DISTRIBUTION LOSSES DISTRIBUTION NETWORK DOMESTIC CONSUMPTION DOMESTIC ENERGY DOMESTIC ENERGY PRODUCTION DOMESTIC SUPPLY EAST EUROPE ECONOMIC COOPERATION ECONOMIC CRITERIA EFFLUENT CHARGES ELECTRICITY ENERGY PRODUCTION ENERGY SAVINGS ENERGY SECTOR EXPORTS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT HIDDEN COSTS INCOME INTERNATIONAL BENCHMARKING LOCAL AUTHORITIES |
| spellingShingle |
AFFORDABLE WATER AGRICULTURE APPROACH ASSETS AVAILABILITY BENCHMARK BENCHMARKING BILL COLLECTION BOSNIA HERZEGOVINA CAPITAL COSTS COLLECTION EFFICIENCY CONSUMER GROUPS CONSUMERS CONTINUITY OF SERVICE COST OF WATER COST RECOVERY COST-RECOVERY COST-RECOVERY PRICE COST-RECOVERY PRICES CUBIC METER CUBIC METERS CUBIC METERS OF WATER DEBT DECENTRALIZATION DEFLATORS DISTRIBUTION LOSSES DISTRIBUTION NETWORK DOMESTIC CONSUMPTION DOMESTIC ENERGY DOMESTIC ENERGY PRODUCTION DOMESTIC SUPPLY EAST EUROPE ECONOMIC COOPERATION ECONOMIC CRITERIA EFFLUENT CHARGES ELECTRICITY ENERGY PRODUCTION ENERGY SAVINGS ENERGY SECTOR EXPORTS GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT HIDDEN COSTS INCOME INTERNATIONAL BENCHMARKING LOCAL AUTHORITIES Ebinger, Jane O. Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper; No. 3992 |
| description |
Unintentional implicit subsidies (hidden costs) to public utilities can be considered an illegitimate claim on public resources. This paper examines the role and sources of hidden costs in the energy and water sectors in the Europe and Central Asia (ECA) region. It reviews available data and introduces a model-the Hidden Costs Calculator-that can be used to quantify the burden on governments of infrastructure policy and implementation decisions. This simple-to-apply model provides insight into three key components of hidden costs that affect infrastructure-poor bill collection rates, excessive losses due to inefficient operations or theft from the networks, and tariffs set below cost-recovery rates. The major advantage of this model is that, using existing data, it can provide a single measure for hidden costs that can be easily calculated, tracked, and reported. Therefore it can monitor and benchmark trends across sectors and countries without extensive or costly data collection. The model compares the difference between actual revenues and revenues that could be anticipated in a well-functioning system operating with cost-covering tariffs, bills paid, and losses normative for networks of a certain age and design. The underlying premise is that quantifying the order of magnitude of each component of hidden costs has potential for strengthening infrastructure policy dialogue and influencing decisionmakers who allocate scarce budgetary resources. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ebinger, Jane O. |
| author_facet |
Ebinger, Jane O. |
| author_sort |
Ebinger, Jane O. |
| title |
Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia |
| title_short |
Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia |
| title_full |
Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia |
| title_fullStr |
Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia |
| title_full_unstemmed |
Measuring Financial Performance in Infrastructure: An Application to Europe and Central Asia |
| title_sort |
measuring financial performance in infrastructure: an application to europe and central asia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/08/6980563/measuring-financial-performance-infrastructure-application-europe-central-asia http://hdl.handle.net/10986/9295 |
| _version_ |
1764406432771342336 |