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

Download
index.pdf
2018
Tekin, Zeki Emre
Show full item record
230
views
67
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.
Public-private sector cooperation., Express highways., Road construction industry
http://etd.lib.metu.edu.tr/upload/12622490/index.pdf
https://hdl.handle.net/11511/27435
Graduate School of Natural and Applied Sciences, Thesis

Suggestions

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 ...
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...
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...
Development of an IT-based tool for portfolio assessment and management for construction companies
Bilgin, Gözde; Dikmen Toker, İrem; Özorhon Orakçal, Beliz; Department of Civil Engineering (2019)
Development in the construction industry has leaded most of the construction companies to undertake more complex projects than before, which are generally executed concurrently. Therefore, project management routines of the companies may not support effective management of multi-projects. Project portfolio management approach has been suggested to meet requirements for coordinating multi-projects to meet strategic objectives under limited resources. Since project portfolio management requires a comprehensiv...
Investigating the relationship between the recent investments on construction sector and some economic indicators of Turkey
Aydın, Aykut; Özdemir, Özlem; Department of Business Administration (2016)
Construction industry is believed to constitute a significant part of the economic development and there are quite noteworthy studies that analyze the relationship between construction industry investments and economic development. This study attempts to find out this causal relationship by using Toda and Yamamoto Augmented VAR model for Granger Non-causality. In addition, two separate models are used in order to detect the effects of specific construction activities such as residential, commercial and indu...
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.
METU IIS - Integrated Information Service open@metu.edu.tr