Open AccessMonte Carlo Simulations as a Tool to Support Quantitative Value for Money Assessment of Public Private Partnership Project
Author(s) -
Dinh Thi Thuy Hang,
Nguyen Thi Kim
Publication year - 2021
Publication title -
research in world economy
Language(s) - English
Resource type - Journals
eISSN - 1923-399X
pISSN - 1923-3981
DOI - 10.5430/rwe.v12n3p97
Subject(s) - value for money , procurement , general partnership , monte carlo method , value (mathematics) , government (linguistics) , public–private partnership , computer science , operations research , economics , business , finance , engineering , public economics , marketing , mathematics , statistics , machine learning , linguistics , philosophy
Value for money assessment is a crucial approach to compare the value of a project done by Public Private Partnership (PPP) with traditional government procurement. However, one of the most challenges in Value for money (VFM) assessment is uncertainty in inputs, which lead to imprecise output computation. To solve this issue, some practical studies suggest Monte Carlo Simulations (MCS) as a tool to support quantitative Value for money assessment to achieve reliable outcome estimation. Although many international researches focus on quantitative VFM analysis with the use of MCS, few Vietnamese studies conduct this issue. This research illustrates the application of MCS to support quantitative VFM assessment of PPP projects in Vietnam. A case study of a transport project in Vietnam is employed to demonstrate the model.