Micro-Economical Aspects of Public Projects: Impact Factors for Project Efficiency and Sustainability

Project management approach in the public administration becoming gradually applied tool for implementation of different public programs and activities. Latvia has several methodological documentations to evaluate the possible benefits from infrastructure but still there is need for improvements as the only clear defined methodology is for transport sectors and those which have been provided by the European commission, but not always have been practically used in local municipalities’ project evaluations. Public projects, and planning for such projects, generally have the following characteristics: • Such projects are inherently risky due to long planning horizons and complex interfaces. • Technology is often not standard. • Decision making and planning are often multi-actor processes with conflicting interests. • Often the project scope or ambition level will change significantly over time. • Statistical evidence shows that such unplanned events are often unaccounted for, leaving budget contingencies sorely inadequate. • As a consequence, misinformation about costs, benefits, and risks is the norm. • The result is cost overruns and/or benefit shortfalls with a majority of projects. Paper exanimates public project management applications in the context of the underlying structure that adverse dynamics and their application to specific areas for micro-economical level of project management, synthesizes the policy messages, and provides directions for future research. Public sector project management in Latvia become popular in recent years as there is different type of public funding sources available. The paper examined the application of the project management practice and its micro-economic aspects in public sector in Latvia. Public sector project management in Latvia become popular in recent years as there is different type of public funding sources available. The paper describes the public sector project management practice in Latvia. Study shows that public sector project maturity level is low and should be improved. Research period covers the time from January 2013 – March 2015.