Abdullah Bin Murshid Master Theses
Theses Title : A Model For Assessment the Public-Private Partnership (PPP) Approach In Contracts Of Electrical Power Projects In Saudi Arabia.
Electricity sector in the kingdom is considered as one of the highly progressive and of vital importance sectors . The growth of demand on electricity is leaping over 7% annually. The projection of power generation by year 2023 G was forecasted to be 67,000 Mega Watt. Funding of such requirements will reach to 341 Billion Riyals; which is quite huge; in order to meet with the growing demand of the Kingdom.
In view of the size of required funding and hardship to finance the new projects, the continuous requirements for money to support the accompanying operation and maintenance of such projects will necessitate the involvement of Private sector as a partner in the development process.
The participation of Public sector & Private sector in the infrastructure projects is not new world wide, especially in the field of electricity. Many cases were successful and some had failed . Since the Kingdom is planning to enter this experiment in the field of electricity.
The researcher had studied the experiment of other countries for the participation of Private sector in the infrastructure projects and in electricity projects in particular.
Forty five sub criteria governing the success or failure for such projects in addition to the main local criteria affecting the electricity sector were derived from these experiments, and were divided into 13 main criteria. These main criteria were distributed into 3 stages.
First stage is related to the infrastructure projects in general containing 6 main criteria , Second stage is related to the electricity sector with the divisions of generation and transmission containing 3 main criteria , Third stage is related to power generation projects and containing 4 main criteria.
The method of Analytical Hierarchy Process (A.H.P.) together with the Expert Choice (E.C.) program were used with the knowledge of the importance of the 3 stages, main criteria, and sub-criteria through the synthesized expert opinion in this field to evaluate each criteria. The synthesized expert opinion is used to create a model which will assist the decision maker to apply or not to apply the approach of Public Private Partnership (P.P.P.) on electrical projects .
Upon the application of geometric mean to the numerical values for the weights of criteria in the model, it was found that the following order for the main criteria is as follows:
- electrical economy 17.6 %
- project economy 12.6 %
- type of power plant 9.7 %
- rules and regulation of electrical sector 9.5 %
- location of power plant 7.7 %
- electrical technology 7.2 %
- technological 7.0 %
- rules 6.0 %
- fuel 5.3 %
- link of electrical net 5.0 %
- administration 4.2 %
- social and country economics 4.1 % for both .
The expert opinions were meeting on the following three decisions to be concluded by the decision maker:
Decision 1: “Apply PPP” when the model value is in the range (100% -70%)".
Decision 2: “Don Not Apply PPP” when the model value is less than 60%.
Decision 3: Decision maker will decide which is appropriate.
The decision maker should feed the designed program ( user-interface ) by his evaluation of the criteria to get the conclusions for his project as mentioned above .