An integrated planning model for investment in urban infrastructure and pricing municipal services

This viewpoint proposes an iterative, cyclical and incremental model for preparing and pricing a capital investment programme and budget for municipal infrastructure services. South African towns and cities are used as case‐studies. The model links capital investment, operation and maintenance (supply) to the prices offered or paid by the beneficiaries (demand). Ignoring the conventional framework for the development of an area, this viewpoint concentrates on how capital investment for municipal infrastructure services could be planned and programmed and prices or tariffs determined. Given that socio‐economic trends in most municipalities in South Africa are unpredictable, short‐ to medium‐term capital investment planning is emphasised.