A decision support system for value for money analysis of minimum revenue guaranteed road projects

Download

index.pdf

Date

2018

Author

Tekin, Zeki Emre

Metadata

Show full item record

Item Usage Stats

138
views

39
downloads

Public Private Partnership (PPP) projects have ability to fund themselves when investments generate sufficient revenue. However, commercial revenues except collected tolls are limited in road projects. On the other hand, demand uncertainty creates concerns regarding toll revenues and governments generally provide Minimum Revenue Guarantee (MRG) to make road PPPs feasible and attractive for private sector. If optimum level of MRG are not assessed during preparation stage and required funds are not allocated for projected payments, not only PPP model does not provide value for money (VfM) but also government may experience fiscal problems in the budget. Hence, in this thesis, a decision-support system (DSS) that enables quantifying the risks and MRGs probabilistically and at the same time, allows choosing optimal MRG level by considering not only private sector profitability but also VfM values is developed. Proposed system offers qualitative assessment criteria to be evaluated together with probabilistic VfM values. The proposed system is used for value for money analysis of a road PPP project procured in Turkey compatible with existing practice. The results show that multi view approach adopted in the system helps the public sector to create the best tender structure for maximization of VfM and at the same time enables the private sector to offer the most profitable operation duration during tender process.

Subject Keywords

Public-private sector cooperation., Express highways., Road construction industry

URI

http://etd.lib.metu.edu.tr/upload/12622490/index.pdf
https://hdl.handle.net/11511/27435

Collections

Graduate School of Natural and Applied Sciences, Thesis

Suggestions

OpenMETU
Core

Development of a risk assessment method for sustainable construction of megaprojects Coşkun, Cansu; Birgönül, Mustafa Talat; Department of Civil Engineering (2019) Mega projects are large-scaled and long-term investments. Therefore, they have significant impacts on national economy in micro and macro scale, environment and society in comparison to the small and medium-sized construction projects. Time, cost and quality are the most common criteria that are utilized to evaluate the performance of the construction projects, yet those criteria become insufficient to evaluate the mega construction projects’ success. These projects have a long life-cycle from the planning ...
Impact assessment based sectoral balancing in public R&D project portfolio selection Caglar, Musa; Gürel, Sinan (2019-06-01) Government funding agencies spend significant amounts of R&D funds through funding programs. While allocating funds among sectors or scientific disciplines, the Decision Maker (DM) wants to maximize the total impact by supporting R&D activities in those sectors with higher scientific, social and economic return. On the other hand, the DM wants to balance the funding budget over sectors or disciplines. In this study, we incorporate the results of "sectoral impact assessments" into the public R&D project port...
A smart contract system for security of payment of construction contracts Ahmadisheykhsarmast, Salar; Sönmez, Rifat (Elsevier BV, 2020-12-01) © 2020 Elsevier B.V.Timely payment of project participants is crucial for successful completion of construction projects, however the construction industry worldwide suffers from poor payment practices. The existing research studied the reasons and the consequences of the payment problem, but very few studies proposed methods for eliminating the problem. In this paper a novel smart contract payment security system named SMTSEC is presented for eliminating or reducing payment issues in the construction secto...
An Exploratory Study on Causes and Impacts of Variation Orders in Public-Private Partnership Projects Ejder, Kıvanç Umut; Dikmen Toker, İrem; Birgönül, Mustafa Talat; Department of Civil Engineering (2022-2) Variation is an inevitable and inherent factor in public-private partnerships (PPP) projects which are a result of the extensive contract duration and the dynamic environment together with a large number of stakeholders. It is common in all kinds of PPP projects and determines the time limits and projected budget of the projects. For the social and financial viability of the project, it is important to be aware of these variations and their consequences that occur during the project life cycle. One of the m...
Metaheuristic Based Automated Evaluation Method for Public Investment Project Yılmaz, Tulug Figen; Karagöz, Pınar (null; 2015-09-25) The public investment projects are essential to improve the state economy and life of people. Since the resources are limited, developing automated project performance evaluation systems are required. In this work, we propose a metaheuristic algorithm based approach for automated project evaluation. Project evaluation involves selecting the attributes effective for evaluation, determining the weights of the selected attributes and determining cut-off values for project evaluation. In the attribute selection...

Citation Formats

Z. E. Tekin, “A decision support system for value for money analysis of minimum revenue guaranteed road projects,” M.S. - Master of Science, Middle East Technical University, 2018.