Using Analytic Network Process (ANP) Model to Prioritize Taiwan BOT Bidders

Public-Private-Partnership (PPP) was used by Taiwan government as the priority measure to build the public infrastructure in the last decade. Based on the estimation of Taiwan government, 3.99 trillion NT Dollars will be spent on 12 I-Taiwan Projects in the next 8 years. Herein, 1.34 trillion (33.6％) will be sourced from Private Sector. Meanwhile, it is expected that BOT will be the major project delivery method in future Taiwan PPP projects. One of the crucial BOT issues is how to prioritize the qualified bidders via International Competitive Bidding system and to determine the-best-value bidder. Then, BOT Contract could be signed and commenced accordingly. Presently, Simple Additive Weighting (SAW) is the sole method used by Taiwan government to prioritize the qualified BOT bidders. Although the priorities of the bidders could be determined by many multiple-criteria evaluation methodologies such as： TOPSIS, MAUT, ELECTRE, AHP and so forth； AHP（Analytical hierarchy process） is widely suggested to be used for the prioritization of Taiwan BOT bidders . Nevertheless, AHP has some severe theoretical problems and should be improved: Firstly, it still assumes that the evaluation criteria should be independent with each other, which is rarely existed in the real cases. Secondly, no feedback is allowed in the structure network. The purpose of this paper is to introduce Analytic Network Process (ANP). ANP was originally developed by Dr. Satty to resolve AHP's theoretical problems. The presentation will include the conceptual theory of ANP and its implementation steps, and the framework of how to set up this Prioritization Model in Taiwan BOT bidding processes.