Successful Tendering in Public Private Partnership, Cost Opportunity Analysis

Document Type : Research Article

Authors

1 Assistant Professor, Islamic Azad University West Tehran branch

2 Islamic Azad University, South Tehran

Abstract

Due to inadequate public financial status and increasing demand for infrastructure facilities, many governments worldwide are exploring new arrangements through Public Private Partnerships (PPP). However, PPP approach is not applicable for all projects and investors may pay a lot of time and money for preparation for a tender that may not have adequate return back. Therefore, private investors seek a model to support them in deciding whether the bid or no-bid in a PPP tender. This paper presents a decision support system based on MADM decision-making models to evaluate the Cost Opportunity of tenders. Utilizing the proposed model, private investors can rank the PPP tenders and select the most tender with the least cost opportunity. Applying the proposed model to eleven Iranian PPP project in the field of water and power plant, prove that private investor decides to bid in a tender not only for fiscal attracters of the project, but also they consider how public authority is organized and committed to responsibilities. The public party can improve the success chance of PPP tenders by offering some incentives and advocating de-risking mechanisms.‎

Keywords

Main Subjects

References

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Amirkabir Journal of Civil Engineering
Volume 54, Issue 2
May 2022
Pages 395-412

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