PROBLEMS OF ASSESSING THE SOCIOECONOMIC EFFECTIVENESS OF MUNICIPAL INVESTMENT PROJECTS IN GEORGIA

Nowadays in the world, public structures are just as often and fundamentally pre-evaluating investment projects using a proven methodology as private investors. This allows them to predict the results of the investment project implementation and to make final conclusions about the effectiveness of the investment project compared to the actual indicators. Moreover, there is a clear tendency to reduce the volume of projects for which pre-selection-evaluation procedures are applied, before making a decision on their implementation. On the example of Georgia, despite the fact that a normative base for pre-selection and evaluation of investment projects has been created with the involvement of donor organizations, we have not been able to find even one case of selection and evaluation of investment projects at the municipal level (except the capital). Therefore, the aim of our research is to identify the circumstances that prevent municipalities from pre-evaluating investment projects, analyze the challenges municipal authorities faces in this area, make appropriate conclusions and develop recommendations to solve the existing challenges. There was approved "Investment Project Management Guide" by the Government Resolution №191 on the management of public investment projects (22.04.2016); The management methodology of investment project was approved y the order of the Minister of Finance of Georgia N165 (22.07.2016) and according to them, public investment projects with a value of 5 million GEL or more were subject to selection and evaluation. There is no doubt that the implementation of these mentioned recommendations will give a number of positive results to the municipalities, among which we should first of all mention the increase in the efficiency and effectiveness of public finance spending.