Application of Topsis Decision-Making Technique in Selecting a Sustainable Project Financing Model for Infrastructure in China

Selection of a sustainable project financing model (PFM) has tremendous impact on the total outcome of a project. With that said, there really isn’t a specific PFM option that will always thrive regardless of the ensuing factors. Hence, the need for choosing a beneficial PFM: one which will align with client needs, stakeholders’ expectations and project demands. Build Operate Transfer (BOT), Public Private Partnership (PPP) and Asset Backed Securities (ABS) are PFM alternatives which relevant parties can make use of based on project specific attributes. With the advent of multi-criteria decision-making (MCDM) approaches, PFM selection is made possible especially when mindfulness is placed on governing factors applicable to each alternative. Having this research, a methodological process comes to play with identification of comparison factors applicable to each alternative, adopting a hypothetical case study with criteria weights analyzed ideally with all things being equal. Thereafter, the Technique for Order of Precedence by Similarity to Ideal Solution (TOPSIS) method is implemented in order to arrive at a proposed ranking for the PFM alternatives. Results generated provide a framework with consideration for parties to the MCDM process in reaching optimal PFM solutions regarding construction projects.