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Nature and definition

The traditional funding of infrastructure and services can be generally characterized as an obligation by the state and municipality to make periodic payments to the contractor hired during the construction phase of infrastructure and service delivery. After completion of the executive the state and the municipality activities to engage with the operation and maintenance. With this funding the state and the municipality bear all risks both during project implementation and operation of infrastructure. The experience shows that in the traditional funding the estimated construction cost often exceeds several times, and the making of the evaluation of the costs for the country of operation and maintenance of the infrastructure is hardly affordable.