Open AccessInvestment decision modeling for transboundary project portfolio selection
Author(s) -
Kizito Paul Mubiru,
Christopher Senfuka,
Maureen N. Ssempijja
Publication year - 2021
Publication title -
journal of management and science
Language(s) - English
Resource type - Journals
eISSN - 2250-1819
pISSN - 2249-1260
DOI - 10.26524/jms.11.29
Subject(s) - portfolio , investment (military) , selection (genetic algorithm) , integer programming , project portfolio management , general partnership , operations research , business , project management , computer science , economics , finance , engineering , management , algorithm , artificial intelligence , politics , political science , law
Joint activities for global water partnerships in regional development programs are usually facilitated by implementing transboundary water projects. Most projects are however hampered by the absence of a clear economic base for making investment decisions. In this paper, we propose a zero-one integer programming model to determine the optimal decisions for selection of project portfolios on transboundary waters; where project selection is based on several time periods in the future.The objective is to determine whether to undertake a project or not; so that the net present value of investment returns is maximized to support needy communities. A numerical example is presented for illustration; demonstrating the optimal choice of investment projects under budget constraints. The zero-one integer programming model provides a feasible solution for choice of transboundary project investment decisions; given the competing nature of capital budgets prior project implementation. The proposed model can be efficient; where limited funds among competing projects serve as a basis for project selection criteria; a decision for facilitation enhancement towards water partnership for regional development.