Management of public infrastructure in the local community

This master's thesis examines a pressing problem of Slovenian local communities relating to the management of public infrastructure. The water supply infrastructure that was built in the previous century is aging and deteriorating: breakdowns are increasingly frequent, the level of water loss grows greater each year, and moreover the owner (the local community) often does not have access to data on the physical state and risks of the water supply infrastructure, which hinders the selection of sections in need of repair. A major obstacle to carrying out reconstruction investments is the problem of ensuring the financial resources required. Accounting records of fixed assets, which form the basis for the calculation of depreciation, which in turn is used to set the rent for the use of infrastructure, are incomplete. Moreover, fixed assets are valued based on the old purchase price, which does not reflect their actual current value. As a result, the funds collected for reconstruction investments are insufficient. The local community is obligated to be a good manager of property (infrastructure), but what this means in practice is left up to each one’s own conception. For this reason in this master’s thesis we analyzed established standardized practices in other countries for managing material resources and then tested them in the specific case of the water supply infrastructure in the Municipality of Borovnica. This thesis investigates the life cycle of public infrastructure as envisaged by the International Infrastructure Management Manual while also taking into consideration Slovenian legal provisions. Assessment of cost efficiency in the sense of economic indicators in the case of public infrastructure is not possible. Successful management requires ensuring efficiency through the entire lifespan of the infrastructure, which can be achieved through proper planning, consistent implementation, monitoring of effects, and continuous updating of the management plan for public infrastructure