Determining the Optimal Cost of Infrastructure Construction (on Example of the Auto-Road Odesa - Reni)

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Determining the Optimal Cost of Infrastructure Construction (on Example of the Auto-Road Odesa - Reni)

Journal Title: Бізнес Інформ - Year 2016, Vol 8, Issue

Abstract

The article provides setting and solving the optimization task for determining the optimal cost of infrastructure construction (on example of the auto-road Odesa - Reni). In order to select the best proposals from the point of view of both partners in public-private partnership (PPP), using linear programming techniques (matrix games) has been suggested. A payment matrix has been provided, consisting of variants of implementation of the project with predominance of interests of the private partner and with implementation of interests of the State as the second party; terms of project implementation depending on the factor proportion (land, construction, road pavement, financing) in the cost terms. Solving the task by means of Excel software, the price of the game, i.e. the optimal value of the project, has been achieved. The need for implementation of the project with predominance of interests of the private partner has been proved mathematically. The second phase of solving the optimization task showed a combination of conditions, which should be preferred when implementing the project. Prospects for further research in this direction will be studying relationships between the partners of PPP using antagonistic games, as well as analyzing options for achieving certain socio-economic objectives of the PPP.

Authors and Affiliations

Volodymyr Shemayev, Larysa Afanasieva

Keywords

public-private partnership (PPP) optimization task linear programming methods Matrix Games optimal value of project the Odessa - Reni infrastructure

EP ID EP154399
DOI -
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