Conceptual framework for prioritizing financial support for road works and services

published:
Number: Issue 29 (2024)
Section: Economy. Management
The page spacing of the article: 13-24
Keywords: prioritization, financial support, road works, road services, regulations, transport and operational condition, distribution of funding, maintenance, highways.
How to quote an article: Artem Bezuglyi, Bohdan Stasiuk, Serhii Illiash, Taras Pechonchyk, Nataliia Mudrychenko, Viktor Komar. Conceptual framework for prioritizing financial support for road works and services. Kyiv, 2024. Issue 29. P. 13–24 [in Ukrainian].

Authors

State Enterprise «National Institute for Development Іnfrastructure» (SE «NIDI»), Kyiv, Ukraine
http://orcid.org/0000-0003-3883-7968
State Enterprise «National Institute for Development Іnfrastructure» (SE «NIDI»), Kyiv, Ukraine
https://orcid.org/0000-0003-2504-6577
State Enterprise «National Institute for Infrastructure Development» (SE «NIDI»), Kyiv, Ukraine
https://orcid.org/0000-0002-9423-5518
State Enterprise «National Institute for Development Infrastructure» (SE «NIDI»), Kyiv, Ukraine
https://orcid.org/0000-0002-3001-8012
National Transport University (NTU), Kyiv, Ukraine
https://orcid.org/0000-0003-3093-6822
State Enterprise «National Institute for Development Іnfrastructure» (SE «NIDI»), Kyiv, Ukraine
https://orcid.org/0000-0002-2634-9257

Summary

Introduction. The transport and operational condition of the road network in Ukraine is currently in an unsatisfactory state. In addition, as a result of hostilities, traffic flows have been significantly reoriented, the distribution of cargo and passengers by mode of transport has changed, and the types and nature of cargo have changed, which in turn should be taken into account when restoring and developing the road network. At the same time, civilian traffic continues to move on public roads, which necessitates ensuring safe and comfortable passage of motor vehicles.

Problem statement. Given the current transport and operational condition of the road network, a significant reduction in the level of funding for the road sector (which was forced to be reduced due to the allocation of the State Road Fund for the needs of the Armed Forces of Ukraine), there is an urgent need to review existing approaches to the distribution of funding for road works and services.

Objective. To formulate a conceptual framework for prioritizing the financial support of individual road works and services projects, taking into account modern methods of economic analysis and cash flow discounting.

Materials and Methods. The article uses a systemic (integrated) approach, which is a set of general scientific methodological principles (requirements) based on the consideration of objects as systems.
The priority of this process is to ensure an appropriate level of data objectivity, timeliness and relevance of the processed information.

In addition, the article uses the following methods of scientific cognition: analysis, synthesis and comparison, as well as the basic methods of economic analysis.

Results. The conceptual framework for prioritizing the financial provision of road works and services is formulated based on an analysis method that can be used to prioritize road works projects under budgetary constraints, taking into account the current transport and operational condition of the road.

Conclusions. The prioritization of road projects is based on strategic planning, which allows to assess the needs and directions of the road network development using a number of transport and operational data and to systematically approach the decision-making process on the financial support of road works. In addition, the list of road works and services on public roads in Ukraine should be compiled taking into account the provisions of regulations, short-term and long-term state targeted economic programs for road development, and during martial law ¾ the General Staff of the Armed Forces of Ukraine.

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