Multiple Criteria Decision Support for Infrastructure Privatization

In this paper, a multi-criteria decision making (MCDM) framework is introduced for evaluating and comparing a wide range of privatization schemes for infrastructure facilities. The proposed framework helps the decision maker identify all stakeholders, their options, and their preferences. Two MCDM techniques are used consecutively to simulate the process used in an actual privatization case study to arrive at the most suitable decision: (1) the Elimination method that eliminates unfeasible alternatives; and (2) the Scoring method to score the short-listed solutions and arrive at the best one. Based on the proposed framework, a computerized decision support system has been developed and used on the case study. The system proved to be useful for structuring the process and arriving at a better decision than actually made. Areas of improvement to the proposed framework to consider uncertainty and stakeholders' negotiation preferences are then discussed.