There is an emerging trend among developing countries to undertake BOT projects. In order to attract private investments in infrastructure development of a country, the private sector needs to be convinced that a rational and systematic process shall be adopted by the public sector for selection of bids. The objective of this paper is to demonstrate the use of various multi-criteria models for financial evaluation of BOT proposals. The methodology of this paper involves re-analyzing and improving the evaluation system already employed for "XYZ" BOT Project being undertaken by the National Highway Authority of Pakistan. For this purpose, evaluation criteria are selected, weights are assigned to selected criteria, bids are scored out of hundred marks and finally weighted scores against individual criteria are aggregated. In this process, different methods of assignment of weights are explained. Moreover, sensitivity analysis is carried out for finding the impact of changes in weights on the overall rankings of bids. This paper has demonstrated application of different tools of multi-criteria analysis in financial evaluation of BOT bids. It is expected that these models will assist public sector decision makers in conducting a rational and systematic financial evaluation. (a) For the covering entry of this conference, please see ITRD abstract no. E214938.
Samenvatting