Financial management of Public Private Partnership projects using artificial intelligence and fuzzy model

Public Private Partnership has been popular, as an infrastructure delivery model. However, due to the long-term of these contracts, often the initial financial estimates will be changed during operation period. In these circumstances, successful implementation of these projects needs to renegotiations between the main stakeholders including the government, the private sector and end users and then, the additional costs should be divided in forms of annual subsidy, contract extension and toll adjustment, respectively. The key issues are: (1) estimation the future cash flows, in which future demand and operation and maintenance costs as stochastic variables and (2) fair allocation of excess cost between the stakeholders. This paper applied Local Linear Neuro Fuzzy and Multi-Layer Perceptron methods to forecast the stochastic variables. In addition, a fuzzy multi-objective model is proposed to identify the most feasible and satisfactory solution.