LIFECYCLE-BASED INFRASTRUCTURE PLANNING IN GEORGIA: MODELLING EFFICIENCY IN ROAD MAINTENANCE AND REHABILITATION

Abstract

This article develops and applies a stylized theoretical model of infrastructure lifecycle management to the Georgian road network, with the aim of identifying cost-efficient strategies for balancing investment, maintenance, and rehabilitation. The main scientific contribution lies in adapting established optimization models, such as the resurfacing framework and the marginal benefit-cost ratio principle, to the context of an emerging economy with fiscal and institutional constraints. The paper formalizes a deterministic deterioration model that minimizes the present value of total lifecycle costs by incorporating agency costs and user costs as functions of road quality and intervention thresholds. The model accommodates fiscal rigidity by quantifying the cost of deferral under fixed maintenance budgets. Empirically, the paper presents a novel classification and analysis of infrastructure spending in Georgia from 2014 to 2024, highlighting persistent underinvestment in maintenance and frequent misclassification of rehabilitation as capital investment. The study benchmarks these patterns against international good practices. By combining theoretical innovation with policy-relevant empirical evidence, the paper provides a framework for lifecycle-based infrastructure planning that can be adapted for use in other developing countries.