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FINANCING THE DEVELOPMENT OF TECHNICAL INFRASTRUCTURE IN MUNICIPALITIES AND MICRO-REGIONS

G. Kocourkova, L. Vankova
Wednesday 19 December 2018 by Libadmin2018

ABSTRACT

The aim of the article is to map the possibilities of investment activities financing for the development of technical infrastructure in the municipality. Generally this is one of the most frequent investment activities in municipalities. The article introduces the insight in the sewerage system and wastewater treatment plant construction. These investments are most often carried out due to the need of development the services for the municipality residents and changes in the legislation in the field of waste water management and protection of both surface water and groundwater. Municipalities in the Czech Republic manage the municipal budget and thus have the opportunity to implement development strategies and to invest funds in improving the quality of life in the municipality. Municipal budgets come from public funds, but the most widespread source of funding for public projects, since the Czech Republic’s joining the European Union, are subsidy titles focusing on specific areas. In many cases, however, the municipality itself does not have enough resources to support the operation and development of technical infrastructure and has no opportunity to apply for subsidy titles. Therefore, municipalities unite into micro regions. There are more than 550 micro regions in the Czech Republic, e.g. associations of municipalities which have a certain common goal. Micro regions represent one of the ways of intermunicipal cooperation through which it is possible to provide support to member municipalities. Joint financing has benefits in particular in the form of savings; cumulate the funds for co-financing of the projects, joint application of subsidies from funds, etc. Funding can be carried out in two ways, either from members’ own resources or from other public and private sources (e.g. subsidies).

Keywords: municipalities, micro-regions, sewerage, waste water treatment plant, financing


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