Pricing of build-operate-transfer and public-private partnership projects under risk

Subject Areas : Financial Knowledge of Securities Analysis

Adel Hambashi ¹ , Ahmad Ebrahimi ² , Roya Soltani ³

1 - Masters’ student in Industrial Management, Department of Industrial and Technology Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
2 - Assistant Professor at the Department of Industrial and Technology Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran. (corresponding Author)
3 - Assistant Professor at Department of Industrial Engineering, Faculty of Engineering, Khatam University, Tehran, Iran

Received: 2022-07-16 Accepted : 2022-07-16 Published : 2022-05-22

Keywords: Public-private partnership, BOT projects, project portfolio selection, risk control,

Abstract :

Successful implementation of appropriate portfolio of related projects with taking advantage of private company capabilities, is one of the progress indicators in each country. Build - Operate - Transfer contracts as a branch of Public - Private Partnerships are also one of the popular tools to respond to government fund deficiencies in infrastructure projects. In this paper, the whole investment process is set based on self-financing. For selection and time schedule favorite of the project portfolio, a two - way mathematical model with sustainability goals by considering risk, resource constraint, optimal project, interdependence among projects and the flexible time horizon strategy is presented. Also, the main contribution of this paper is considered on maximizing the social benefits of stakeholders. To solve the model, the epsilon constraint method in small and medium size and metaheuristic method of multi - objective genetic algorithm in large size is used. Finally, the main project decision makers determine the cost of the project by selecting the optimal value.

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