Qualitative approach and decision- making procedures for selecting BOT and BOO projects based on the risk in the water and wastewater industry

Document Type : review paper

Authors

• Reza Shahrjerdi1 ¹
• maryam Raoufinia ²
• seyedhossein sajadifar ³
• abdorreza Khalili ⁴

¹ Markazi Province Water and Wastewater Company

² Azad University, Tehran Shomal

³ sharyar azad university

⁴ Markazi Province Water and Wastewater Company,

10.22067/jwsd.v1i3.46705

Abstract

One of the most important strategies for governments to increase the efficiency of different economic sectors, including public services such as water, is to protect and strengthen the private sector. BOT and BOO contracts are among the most common and popular procedures of development of participation and investment from private sector. In this context, providing a good basis for the selection of investment projects using a powerful tool in order to improve the product quality and creating a qualitative customer-driven system (Quality Function Development) is very important. Therefore, the use of multi-criteria decision-making techniques, such as the similarity of the ideal options is necessary to choose the ideal investment. In this paper, a new method proposed to solve the problem of selection of investment projects by employing a powerful tool to improve product quality (Fuzzy Quality Function Deployment (F(QFD)) and Fuzzy multi-criteria decision making techniques (FTOPSIS) and then by considering the factors of risk and their impact on four important factors of the projects including: time, cost, scope and quality. Consequently, FQFD was used to calculate the weight of each risk factor, and then they were ranked by FTOPSIS algorithm based on the development of infrastructure projects and assets. Subsequently, we show through a case study of the proposed method.

Keywords

• Build-Operate-Transfer
• project risk management
• similarity to the fuzzy ideal option model
• fuzzy quality function development

---

References

Baccarini D. and Archer R. 2001. The risk ranking of projects: a methodology. International Journal of Project Management, 19(3): 139-145.

Burke R. 2013. Project management: planning and control techniques. New Jersey, USA

Chen C. 2009. Can the pilot BOT Project provide a template for future projects? A case study of the Chengdu No. 6. Water Plant B Project. International Journal of Project Management, 27(6): 573-583.

Dey‌ P.K. 1999. Process re-engineering for effective implementation of projects. International Journal of Project Management, 17(3): 147-159.

He J. 1996. Introduction to the application of BOT scheme in China. Journal of Foreign Investors, 1: 5-7.

Kang C.C., Feng C.M. and Khan H.A. 2005. Risk assessment for build-operate-transfer projects: a dynamic multi-objective programming approach. Computers & operations research, 32(6): 1633-1654.

Kang C.C. and Feng C.M. 2009. Risk measurement and risk identification for BOT projects: A multi-attribute utility approach. Mathematical and Computer Modelling, 49(9): 1802-1815.

Kumaraswamy M. and Zhang. X. 2001. Governmental role in BOT-led infrastructure development. International Journal of Project Management, 19(4): 195-205.

Turner J.R. 1992. The handbook of project-based management: Improving the processes of achieving strategic objectives. McGraw-Hill Companies. London, UK.

Walker C.T. and Smith. A.J. 1995. Privatized infrastructure: The build operate transfer approach. Thomas Telford. London, UK.

Wang S.Q., Tiong, Robert L.K., Ting S.K. Chew D. and Ashley D. 1998. Evaluation and competitive tendering of BOT power plant project in China. Journal of construction engineering and management, 124(4): 333-341.

Wang S.Q., Tiong, Robert L.K., Ting S.K. and Ashley D. 2000. Evaluation and management of political risks in China’s BOT projects. Journal of construction engineering and management, 126(3): 242-250.

Zamri N. and L. Abdullah. 2014. A New Qualitative Evaluation for an Integrated Interval Type-2 Fuzzy TOPSIS and MCGP, in Recent Advances on Soft Computing and Data Mining. Springer, 79-88.

Zhao Z.Y., Zuo, Jian, Zillante, George, Wang and Xin-Wei. 2010. Critical success factors for BOT electric power projects in China: thermal power versus wind power. Renewable Energy, 35(6): 1283-1291.