International Journal of Advances in Mechanical and Civil Engineering
current issues
Volume-4,Issue-6  ( Dec, 2017 )
Statistics report
Mar. 2018
Submitted Papers : 80
Accepted Papers : 10
Rejected Papers : 70
Acc. Perc : 12%
Issue Published : 21
Paper Published : 483
No. of Authors : 1294
  Journal Paper

Paper Title
Optimization Analysis of Contract Negotiation of Public-Private-Participation Projects

In general, the infrastructure projects are with high economic and social benefits, but with low financial viability. No need to say, the government needs to provide some incentives, such as subsidy or quarantine to allure the participation of private sectors on the infrastructure projects. Win-win situation is the best results for both parties. However, there is no attraction to private sectors if the government propose low subsidy, and it increase the government financial burden with high government subsidy. There are three major participants in PPP projects, which are the government (the client), the Project Company, and bankers with different interests. We may say that it is a tri-party game in a PPP project. Thus, a cooperative game model is constructed to determine the government subsidy, tariff, debt ratio, and interest rate, which may lead to a win-win-win results. A cable car project at Kaohsiung first harbor is used as a case study for constructing the financial model. The results show that the government subsidy =64%, tariff = 16.69 NT$, debt ratio = 46%, and interest rate = 8% in the case study. The project value is 1.73 billion NT$. The Shapley value is 1.67 billion NT$ for the government, 3.8 million NT$ for the project company, and 1.74 million for bankers. We may find a solution for this cooperative game, which implies that all parties meet their benefit requirements. Keywords- Public private partnership(PPP), Game theory, Cooperative game, Shapley value, Project negotiation.v

Author - Jhao-Syun Chen, Borliang Chen, Hue-Chiuen Shiongv

Indexed - Google Scholar

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