Algorithm for Formation of the Investment Project Portfolio of a Public Utility Company

Abstract:

The research reveals that in the system of public services provision the main subject is an enterprise which offers services and whose economic behavior has an impact and causes response on the part of other participants of the system – consumers and the state. It reviews the theoretical aspects of investment performance evaluation of a public service providing enterprise and as a result three ways of performance evaluation are suggested to use: economic efficiency, social efficiency and budget efficiency. Increasing efficiency of the enterprise will contribute to attracting investment, which will make it possible, in the long run, to ensure formation of the necessary volume of financial resources for sustainable development of the enterprise. From the perspective of the state, sustainable development of the public service sector will bring about a fall in budget load. To build up an investment contract portfolio of the public service enterprise, the authors suggest an algorithm of integrated performance evaluation, which considers interests of all counteragents of the service provision system.

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