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Project finance: a multi-criteria approach to arbitration

Author

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  • E Ballestero

    (Technical University of Madrid)

Abstract

Large investment projects in sectors such as transportation and natural resources require some risk allocation agreements to be financed at low interest rates. Focusing on these agreements made between the project company (or the sponsors) and other participants (the host government, the client, the supplier, the constructor, or the lenders) I propose a multi-criteria normative model to conduct the bargain decision-making process in a rational way. This model is based on compromise programming (CP) and it is specially designed for arbitration when the bargain process becomes deadlocked. Plausible theoretical and practical results are obtained, and a numerical example is developed.

Suggested Citation

  • E Ballestero, 2000. "Project finance: a multi-criteria approach to arbitration," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(2), pages 183-197, February.
  • Handle: RePEc:pal:jorsoc:v:51:y:2000:i:2:d:10.1057_palgrave.jors.2600852
    DOI: 10.1057/palgrave.jors.2600852
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    Cited by:

    1. Francisco Salas-Molina & Juan Antonio Rodr'iguez Aguilar & Filippo Bistaffa, 2020. "Shared value economics: an axiomatic approach," Papers 2006.00581, arXiv.org.
    2. Ana Garcia-Bernabeu & Antonio Benito & Mila Bravo & David Pla-Santamaria, 2016. "Photovoltaic power plants: a multicriteria approach to investment decisions and a case study in western Spain," Annals of Operations Research, Springer, vol. 245(1), pages 163-175, October.

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