Medium-Long Term Economic Sustainability for Public Utility Works

Abstract

The conditions dictated by the pandemic and by the support measures adopted to fight it and relaunch the production systems, creating the conditions for the relaunch of the economy at a global level and, in particular, of the Italian one with average growth expected in the two-year period 2021/22 by 5%. However, the very actions dictated by the European Community, with capital flows concentrated in favor of member Countries in little more than five years, risk tarnishing investors’ lucidity, affecting their forecasting capacity. In detail, economic operators historically accustomed to counting on their own resources have to deal with competitors who could have more convenient operating conditions, damaging the principle of free and effective competition. The most evident case concerns entrepreneurs who operate project financing who build the solidity of the investment hypothesis on the self-sustainability of the project idea, technically translated through the business plan. This instrument is obviously based on the reliability of the market and scenario forecasts which, in fact, today become rather uncertain given the persistence of the health crisis and the whirlwind of news on the financing conditions for the sectors concerned. This study deals with the case of the construction of a multi-story car park in project financing with respect to the critical issues deriving from a business plan that is found to be unreliable due to the change in the macroeconomic horizon and due to conditions depending on complex or not observed contracted rules.