Prioritization Of Public Investment Project Proposals Using Fuzzy Analytic Hierarchy Process

Abstract

Investments made by the governments in order to increase the economic, social and welfare levels of the society are called public investments. Services such as transportation, energy, communication, production, health, education, and justice, as well as various supporting activities such as construction, renovation, maintenance and repairs, and various equipment supplied to ensure the continuity of these services are examples of public investments.

All countries, especially developing countries such as Turkey have to make the right investment decisions in order to ensure effective use of their limited resources. Therefore, all projects to be realized should be analyzed through methods and models, which can quantify and prioritize those projects. However, in the current situation, a scientific method based on quantification in the decision-making process on the selection of investment projects has not been adopted yet in Turkey.

In this context, the purpose of this thesis is to improve the quality of the selection process through a new model able to assess project proposals regardless of country, sector, and type. The model proposed in the thesis consists of two main stages. In the first stage, a set of criteria has been developed to be used in the evaluation of proposals and fuzzy AHP analysis was conducted to weight these criteria. In the second stage, a method has been developed in which the decision maker evaluates the proposal in terms of fulfilling the criteria, assigns 1 or 0 points to each criterion and thus calculates a priority score for this project proposal. Project proposals have been prioritized by using the priority scores calculated for each project proposal.