Browsing by Author "Kuo, Chiu-Yen"

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A royalty negotiation model for BOT (build-operate-transfer) projects: The operational revenue-based model
(2011-11-01)
Kang, Chao-Chung
;
Feng, Cheng-Min
;
Kuo, Chiu-Yen
;
運輸與物流管理系註：原交通所+運管所
;
Department of Transportation and Logistics Management
Whilst few studies have explored royalty negotiations for build, operate and transfer (BOT) projects, some works have proposed numerous royalty formulas to evaluate royalty amounts or franchise fees for a BOT project. Despite this, the royalty negotiation process is one of the many critical negotiation items of a concession contract. This study not only developed a royalty negotiation model for BOT projects, but also developed the iterative algorithm for the BLP problem for the government and the private sector. In addition, the factors incorporated into the iterative algorithm for the BLP problem include the concession rate, learning rate, and the time value discount rate for both parties. Moreover, this paper conducted a case study of the Taipei Port Container Logistic BOT Project using LINGO and MATLAB programming. The results show that the two parties involved completed royalty negotiation at the sixth negotiation. The objective function value for lower-level programming was 1.062 and the government finance recovery rate for higher-level programming was 11.832. The findings show that the government can receive the royalty, which is calculated by using 0.012% of the operating revenue of this BOT project, from the concessionaire. Therefore, the royalty negotiation model based on the operating revenue developed herein; could be employed to explain the negotiation behavior. (C) 2011 Elsevier Ltd. All rights reserved.
A Royalty Negotiation Model for BOT Projects: A Bi-level Programming Approach
(2008)
Kang, Chao-Chung
;
Feng, Cheng-Min
;
Kuo, Chiu-Yen
;
運輸與物流管理系註：原交通所+運管所
;
Department of Transportation and Logistics Management
This study develops the royalty negotiation model of BOT (Build, operate, and transfer) projects for government and private sector by Bi-level programming approach. There were few studies to explore the royalty negotiation about BOT projects; however, the royalty negotiation is one of many critical negotiation items of concession contract. This study not only develops royalty negotiation model for BOT projects, but also develops the heuristic algorithm for the Bi-level programming problem. The factors of concession rate, time value discount, learn rate and number of negotiation are incorporated into this algorithm. In addition, this paper conducted a case study with the Taipei Port Container Logistic BOT Project by the LINGO and MATLAB programming. Results show that two parties finish the royalty negotiation at the 6th negotiation and the profit index of concessionaire is 1.0621; the government finance recovery rate is 11.689. Therefore, the royalty negotiation model herein developed could be applied to explain the negotiation behavior.
Comparison of royalty methods for build-operate-transfer projects from a negotiation perspective
(2012-07-01)
Kang, Chao-Chung
;
Feng, Cheng-Min
;
Kuo, Chiu-Yen
;
運輸與物流管理系註：原交通所+運管所
;
Department of Transportation and Logistics Management
This study constructs a royalty negotiation model for the bi-level programming (BLP) problem and develops a heuristic algorithm for solving the BLP problem. Concession rate, learning effect, and the time value discount rate are integrated into the proposed algorithm to reflect an authentic negotiation process. A case study is employed to simulate the negotiation behavior of two parties and alternative royalty strategies are discussed. Analytical results indicate that the two parties acquire the best negotiation result during the fifth negotiation. The operational revenue-based royalty model is more preferred by governments, while concessionaires favor more the operational output-based royalty model. (C) 2012 Elsevier B.V. All rights reserved.
Royalty Analysis for BOT Projects Based on The Negotiation Viewpoint
(2009)
Kang, Chao-Chung
;
Feng, Cheng-Min
;
Kuo, Chiu-Yen
;
運輸與物流管理系註：原交通所+運管所
;
Department of Transportation and Logistics Management
This study constructs three royalty negotiation models, including the lump-sum royalty, operational revenue-based royalty, and operational output-based royalty, using the bi-level programming approach. In addition, this paper also develops the iterative algorithm for bi-level programming problem for the government and the private sector. A number of factors were incorporated into this algorithm including concession rate, time value discount rate, learning rate and number of negotiations.
Using bi-level programming to analyze the royalty for private-public partnership projects: the operational quantity-based model
(2010)
Kang, Chao-Chung
;
Feng, Cheng-Min
;
Kuo, Chiu-Yen
;
運輸與物流管理系註：原交通所+運管所
;
Department of Transportation and Logistics Management
This paper develops a royalty negotiation model based on the operating quantity of Build, Operate, and Transfer (BOT) projects for both government and the private sector using a bi-level programming (BLP) approach. The royalty negotiation is one of many critical negotiation items of a concession contract. This study develops a royalty negotiation model to simulate the negotiation behavior of two parties, and derives the heuristic algorithm for the BLP problem. A number of factors are incorporated into this algorithm including the concession rate, the time value discount rate, the learning rate, and the number of negotiations. The paper includes a case study of the Taipei Port Container Logistic BOT Project. The results show that the two parties involved completed royalty negotiation at the sixth negotiation stage. The findings show that the government can receive a royalty from the concessionaire, calculated at 0.00386% of the operating quantity of this BOT project. Therefore, the royalty negotiation model developed here could be employed to explain negotiation behavior.