The Strategies for Improving Financial and Economic Interactions of Municipalities and Service Companies (Case Study: Tehran Municipality and Water and Electricity Providers)
رضا مهدی
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Abstract :
Tehran Municipality as a comprehensive complex and adaptable system, must have synergistic and co-creative interactions with urban services companies in order to improve productivity. The prerequisite for synergistic and co-creative interactions is the continuous adjustment and improvement of these relationships with the needs of the day with the goals of good municipal and urban administration, greater welfare of the people, and improvement of the quality of life of citizens. From the perspective, the optimal governance of the urban requires the lawful participation of all natural and legal persons in all economic-social, political, technological, environmental, and legal-legal pillars. Based on existing laws, each of the municipal service providers must fulfill their duties and responsibilities. However, for various reasons, at least from a financial-economic perspective, Tehran Municipality does not have appropriate and effective interactions with municipal service companies, and in many cases, the municipality’s rights are not fulfilled from a financial-economic perspective. Tehran Municipality faces billions of RIALS in costs, lack of benefits, or lost opportunities annually due to the lack of regulation and lack of transparency in interactions with service companies of water, electricity, gas, and telecommunications. The article presents strategies that can be applied to solve some of the problems and gaps in the municipality’s interactions with urban service companies, at least from a financial-economic perspective, and improve the current situation. The result of regulating and improving the municipality’s interactions with service companies, in addition to creating transparency, accountability, and financial discipline for all parties, is the creation of billions of RIALS in new, mostly sustainable and increasing income, billions of RIALS in direct or indirect savings, or a reduction of billions of RIALS in direct or indirect costs for the municipality