Multi-criteria Decision Model for BOT Project Selection

Abstract

Due to many disadvantages resulting from limited government budget and time, the increasing infrastructure projects via build-operate-transfer (BOT) model has been a significant factor affecting the economic developments in many countries. However, as BOT projects are usually risky businesses which induce huge capital investments, the project feasibility should be comprehensively evaluated and an appropriate project selection model is needed to reduce the risk of project failure. By incorporating Analytical Hierarchy Process and Utility Theory, this paper proposes a multi-criteria decision model for supporting the selection of BOT projects. The proposed model enables decision makers to evaluate BOT projects and handle the project risk systematically. A case study of the national sewerage system plan in Taiwan is provided to demonstrate that the implementation of the proposed model can effectively help decision-making teams participate in economical evaluations so that the feasibility of as-planed BOT projects can be systematically determined and project priority can be set efficiently.