Closure to "Optimal capital structure model for BOT power projects in Turkey" by Sandalkhan Bakatjan, Metin Arikan, and Robert L. K. Tiong

Date

2005-03-01

Author

Bakatjan, S
Arıkan, Mehmet Fırat
Tiong, RLK

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

265
views

0
downloads

nterest in the Build/Operate/Transfer (BOT) scheme for infrastructure projects has been growing rapidly, and numerous projects have been implemented around the world. Through BOT projects, a government reallocates the risks and rewards in the development of large infrastructure projects to the private sector. One key aspect to the successful implementation of the BOT concept in any country is the raising of finance by project sponsors. Financial engineering techniques and capital structuring skills are required to find the proper mix of debt and equity and to achieve successful financing for the proposed project. The objective of this paper is to present a simplified model to determine the optimum equity level for decisionmakers at the evaluation stage of a BOT hydroelectric power plant (HEPP) project in Turkey, which takes place immediately after the completion of the feasibility study. The resulting model is the combination of a financial model and a linear programming model that incorporates an objective of maximizing the return of the project from the equity holder’s point of view. To show versatility of the model, a real case study is conducted. Thus, this research is concerned with the determination of an equity funding level in BOT project finance. There are different equity levels found in BOT HEPP projects, and there is a need for such a model to determine optimal capital structure, which would assist the project sponsors to ensure that the equity level necessary for optimal capital structure is available prior to the project implementation stage.

Subject Keywords

Strategy and Management, Industrial relations, Civil and Structural Engineering, Building and Construction

URI

https://hdl.handle.net/11511/40841

Journal

JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT-ASCE

DOI

https://doi.org/10.1061/(asce)0733-9364(2003)129:1(89)

Collections

Department of Mathematics, Article

Suggestions

OpenMETU
Core

Activity Uncrashing Heuristic with Noncritical Activity Rescheduling Method for the Discrete Time-Cost Trade-Off Problem Sönmez, Rifat; Atan, Tankut (American Society of Civil Engineers (ASCE), 2020-08-01) Despite intensive research efforts that have been devoted to discrete time-cost optimization of construction projects, the current methods have very limited capabilities for solving the problem for real-life-sized projects. This study presents a new activity uncrashing heuristic with noncritical activity rescheduling method to narrow the gap between the research and practice for time-cost optimization. The uncrashing heuristic searches for new solutions by uncrashing the critical activities with the highest...
Contextual Information Requirements of Cost Estimators from Past Construction Projects Kiziltas, Semiha; Akinci, Burcu (American Society of Civil Engineers (ASCE), 2009-09-01) Past project data sources provide key information for construction cost estimators. Previous research studies show that relying only on one's own experience during estimation results in estimators' bias. Having and referring to historical databases, containing objective information on what happened in past projects, are essential for reducing estimators' biases. The first step toward development of useful project history databases is to understand what information estimators require from past projects. The ...
Critical Sequence Crashing Heuristic for Resource-Constrained Discrete Time-Cost Trade-Off Problem Sönmez, Rifat; Uysal, Furkan (American Society of Civil Engineers (ASCE), 2016-03-01) Despite the importance of project deadlines and resource constraints in construction scheduling, very little success has been achieved in solving the resource-constrained discrete time-cost trade-off problem (RCDTCTP), especially for large-scale projects. In this paper a new heuristic method is designed and developed to achieve fast and high-quality solutions for the large-scale RCDTCTP. The proposed method is based on the novel principles to enable effective exploration of the search space through adequate...
Neural Network Model to Support International Market Entry Decisions Dikmen Toker, İrem; Birgönül, Mustafa Talat (American Society of Civil Engineers (ASCE), 2004-02-01) Bidding for international construction projects is a critical decision for companies that aim to position themselves in the global construction market. Determination of attractive projects and markets where the competitive advantage of a company is high requires extensive environmental scanning, forecasting, and learning from the experience of competitors in international markets. In this paper, a neuronet model has been developed as a decision support tool that can classify international projects with resp...
Sensing and Field Data Capture for Construction and Facility Operations Taneja, Saurabh; akinci, burcu; garrett, james; soibelman, lucio; berges, mario; Atasoy Özcan, Güzide; LIU, XEUONG; SHAHANDASHTI, SM; ANIL, BURAK; ERGEN PEHLEVAN, ESİN; pradhan, anu; tang, pingbo (American Society of Civil Engineers (ASCE), 2011-10-01) Collection of accurate, complete, and reliable field data is not only essential for active management of construction projects involving various tasks, such as material tracking, progress monitoring, and quality assurance, but also for facility and infrastructure management during the service lives of facilities and infrastructure systems. Limitations of current manual data collection approaches in terms of speed, completeness, and accuracy render these approaches ineffective for decision support in highly ...

Citation Formats

S. Bakatjan, M. F. Arıkan, and R. Tiong, “Closure to “Optimal capital structure model for BOT power projects in Turkey” by Sandalkhan Bakatjan, Metin Arikan, and Robert L. K. Tiong,” JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT-ASCE, pp. 386–387, 2005, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/40841.