Evaluating of the Effectiveness of Public-Private Partnership Projects in the Republic of Kazakhstan with the Analytic Hierarchy Process
Evaluating of the Effectiveness of Public-Private Partnership Projects in the Republic of Kazakhstan with the Analytic Hierarchy Process

Summary/Abstract: Evaluation of the effectiveness of public-private partnership (PPP) projects is one of its important aspects. However, it is difficult to accurately evaluate the benefits the state acquires from PPP contracts, to determine the reliability of the declared efficiency and outcome of the projects, and mechanisms for evaluating their effectiveness have not been developed properly; all this necessitates the creation of a methodology for the integrated evaluation of PPP projects that is different from traditional methods. Goal of the research is to develop a new approach to the evaluation of PPP projects based on an integrated indicator that takes into account not only traditional economic factors but also social and socio-political factors, including the multiplicative effect of project implementation, employment, environmental conservation, reduction of social tension and others. To calculate the integral indicator in the evaluation of the projects effectiveness, the authors used the analytic hierarchy process (AHP) which allows to evaluate not only quantitative, but also qualitative information. The authors developed recommendations for devising a methodology which would enable to evaluate the effectiveness of PPP projects and which makes it possible to determine not only economic but also social effectiveness at the stage of their implementation. The application of the new approach enabled to assess the impact of not only economic factors, but also non economic, social, political, etc., providing a comprehensive evaluation of the project effectiveness.

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