Ecological and Economic Efficiency of Investments in Water Management

Methods And Techniques

In the absence of domestic studies, it is advisable to focus on the foreign experience in and methodological approaches to economically and environmentally optimal business strategies, taking into account modern features of economic relations as well as the financial calculation practice in the water management and reclamation industry in Ukraine.

In the developed countries, project feasibility studies have been based on the methodology developed by United Nations Industrial Development Organization (UNIDO). The methodology was first published in 1978 and became fundamental for making project decisions. The methodology focuses on changes in the value of money over time, evaluation of project effectiveness throughout the its life cycle, investment decisions based mainly on the net present value, and risk evaluation and their impact on the project performance.

The methodology is subject to studies, improvements and adaptation to various industries. Studies have been presented in research papers, including Teichroew et al. (1965), Kwak et al. (2000), Sudong et al. (2000), Mohamed et al. (2001), Nowak (2005), Bierman et al. (2006), Chen (2006), Haka (2006), Armeanu et al. (2009), and Wang et al. (2019).