A Model to Assist Decision Making of Public Private Partnership in Electricity Projects

Ibrahim A. Al-Hammad, Adel I. Al-Dasouqi

Abstract


Electricity sector in the Kingdom of Saudi Arabia is considered one of the highly progressive sectors. The growth of demand of electricity is estimated to be over 7% annually. Therefore, partnership of public and private sectors (PPP) is necessary. Since the Kingdom is planning for PPP, the researchers have studied experiments of other countries in the field of infrastructure projects and in particular in electricity projects. Forty five criteria governing success or failure of such projects worldwide in addition to main criteria affecting local electricity projects were derived and classified into 3 phases. In order to evaluate these criteria and assist the decision maker to apply or not to apply PPP, a model was developed making use of the analytical hierarchy process accompanied with the expert choice program and of the assessment of the criteria by a group of experts. Three decisions may be obtained: apply PPP if the weight of the model is greater than 70%, do not apply PPP if the weight of the model is less than 60% and the decision is left for the decision maker in between.

Keywords


Partnership of Public Private Sectors, Electricity Projects, Analytical Hierarchy Process, Expert Choice Program and Decision Making

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