Deakin University
Browse
nasirzadeh-determinationof-2014.pdf (380.93 kB)

Determination of concession period in build-operate-transfer projects using fuzzy logic

Download (380.93 kB)
journal contribution
posted on 2014-07-01, 00:00 authored by Farnad NasirzadehFarnad Nasirzadeh, M Khanzadi, M Alipour
The build-operate-transfer (BOT) projects are a popular method of privatization of public infrastructure development. There are several risks which might affect a BOT project negatively. Concession period is one of the most important decision variables in arranging a BOT-type contract which should be determined considering the existing risks and uncertainties. A longer concession period is more beneficial to the private investor, whereas a prolonged concession period may result in loss for government investments. On the other hand, if the concession period were too short, the investor would either reject the contract offer or would be forced to increase the operation fees in order to recover the investment costs and to make a certain level of profit. In this paper, the concession period is determined using a new fuzzy logic based methodology. The proposed approach accounts for the existing risks and uncertainties. In the proposed methodology, the interests of both parties would be ensured and a win-win solution would be achieved. To evaluate the performance of the proposed methodology, the methodology was implemented in a highway project.

History

Journal

Iranian journal of management studies

Volume

7

Season

Summer

Pagination

437-456

Location

Tehran, Iran

ISSN

2008-7055

Language

eng

Publication classification

C Journal article, C1.1 Refereed article in a scholarly journal

Copyright notice

[2014, University of Tehran]

Issue

2

Publisher

University of Tehran

Usage metrics

    Research Publications

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC