The Ranking of Financing Methods in Urban Old Texture (Case Study of Isfahan City)

Aging and building of old texture، in various forms، including the reduction or loss of viability conditions and safety problems as well as physical، social، economic and infrastructural can be received and identified. The essential need for reconstruction and rehabilitation of the urban old textures is the development of environment for humans. The necessary requirements are socio - cultural and economic (Shamaei and Pourahmad، 2006:43). Theoretical bases: The required capital for the reconstruction and rehabilitation of the whole old urban textures، according to rehabilitation organization of Tehran''s estimates، is 5 times bigger than government budget in 2010 and 59 times bigger than all Municipalities of Iran in 2008. This subject demonstrates that providing required capital is not merely in capabilities of the public sector or Municipality (Ranjbarian، 2010، p. 142). But it needs the widely usage of financial markets and the financial tools which is possible via more cooperation between both public and private sectors. From a theoretical perspective، the concept of the cooperation between public and private sectors is related to the «X-efficiency» theory which was introduced in 1966 by American economist Harvey Leibenstein (1922-1993). According to his view، until the public economic institutions and enterprises receive official blessing of financial resources and enough monetary policy for release، offset and limit their possible failure، they will never go bankrupt. The final results of this research show that the private sector participation with final weight of 0. 323 is the best financing method for reconstruction and rehabilitation of urban old textures according to the research''s criteria. The risk in this method is much less than in other financing methods. Also، the private sector participation in higher return rate criteria with the relative rate of 0. 319 is in first place. The cost of this method is low and only the cost of the money providing process is higher in this method comparing to the others. But the relative weight of the cost of money providing criteria in comparison to the other ones is lower; thus in general، it has not changed the private sector participation rank. Although government officials are aware of the importance of executing the project، but government aids to this community is at least and the rules are not supporting using government facilities. As the results showed، the method of private sector participation with total weight of 0. 323 is the best method for reconstructing and rehabilitating old urban texture. Thus، government officials need to consider this and provide required facilities to supply bonds. Also، according to results، the private sector investment with final weight of 0. 235 is in the second place in financing methods priority. On the other hand، considering the advantages of this method and also its high place in ranking due to criteria، more attention is needed. The bank funding method with relative weight of 0. 129 has the last or fifth ranking. The results do not suggest applying this method comparing to the other financing methods used in this research. Suggestions: The results show that the private investment with final weight of 0. 235 is in the second place in financing methods priority. On the other hand، considering the advantages of this method and also its high place in ranking due to criteria، more attention should be given to it.