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Implementing AHP Approach to Select an Appropriate Financing Method for PPP Highway Projects in Iran

Esmatullah Noorzai1, Kobra Gharouni Jafari2, Rouhallah Heshmatnezhad3, and Babak Vahedi4
1. Department of Civil Engineering, University of Tehran, Tehran, Iran
2. Department of Management, University of Tehran, Tehran, Iran
3. Hadish Civil & Trade Company, Tehran, Iran
4. Department of Civil Engineering, Amirkabir University of Technology, Tehran, Iran

Abstract—The wide dimensions and nature of activities related to procurement, execution, maintenance and operation of highway projects in Iran and the effects of executing such projects as well as considerable usage of financial resources, call for a better coordination between these issues and other affairs of the country. This objective will not be achieved unless highway projects are financed by the most effective method. This research aims to evaluate different methods of financing such projects, identify the important criteria to select these methods, and finally select the most effective financing method. Identification of the criteria to choose the optimum financing method is significant in highway projects. If these criteria are carefully selected and applied, they will not only contribute to more efficient completion of highway projects, as one of the most significant infrastructures of a country, but also generate considerable revenues for the economy. In this paper, at first the most important criteria to select an optimum financing method for a highway project are identified by a questionnaire survey. In the next step, by using Cronbach Alpha calculated by SPSS, the questionnaire’s reliability is obtained and relative importance of each criterion is determined from perspective of project execution experts. Subsequently, AHP method and Expert Choice software are employed in order to choose the best financing method in highway projects. Finally, the most suitable financing method for highway projects in Iran is determined under the condition that all the identified and important criteria be applied.  

Index Terms—PPP contracts, highway project, AHP approach, decision making

Cite: Esmatullah Noorzai, Kobra Gharouni Jafari, Rouhallah Heshmatnezhad, and Babak Vahedi, "Implementing AHP Approach to Select an Appropriate Financing Method for PPP Highway Projects in Iran," International Journal of Structural and Civil Engineering Research, Vol. 5, No. 1, pp. 67-73, February 2016. doi: 10.18178/ijscer.5.1.67-73