Modeling the Go /No-Go Investment Decision for China’s PPP Projects Based on Fuzzy Preference Relations

Abstract

PPP model has been used more and more widely in China's infrastructure industry. For project investors, go/no-go investment decision is critical, it may bring investors income or loss. However, the current investment decision-making process in the private capital side is unstructured. This paper identifies the factors that influence the decision-making of PPP projects in China and establishes a hierarchical structure covering government-related, investor-related, project-related and environment-related factors. Based on these influencing factors and the Fuzzy Preference Relations (FPR), this paper establishes a go/no-go decision model based on the investor's perspective in China to help investors make reliable and reasonable investment decisions.