Social Impact Project Finance: An Innovative and Sustainable Infrastructure Financing Framework
We propose a framework of Social Impact Project Finance (SIPF) for financing infrastructure projects. In the framework, public sector commits to pay performance-based yield for improved services, which in turn motivate private investor to better construct and manage infrastructure assets.
By embedding social impact performance criteria, SIPF has an endogenous incentive mechanism that can align perspectives of public and private sectors, while traditional project finance lacks. SIPF can also play a critical role in achieving sustainable infrastructure, because all three components of sustainability (social, environmental and economic) can be easily embedded as impact factors in the framework. In addition, it could be well customized for governments globally to address their own problems, such as carbon emission or congestion reduction. Private investor can also benefit from higher yield, liquidity, and tax break. With this innovative interdisciplinary initiation of impact finance and project finance, there will be significant opportunities to not only create a new format of impact-based project delivery methods, but also show us a prospective way to securitize and deliver public services under clear supervision in the future. More info
Scenario-based Multi-criteria Prioritization Framework for Urban Transportation Projects
Given unprecedented levels of urbanization and motorization in addition to deteriorating infrastructure in developed countries, cities around the world have been facing the enormous challenge of delivering sustainable forms of infrastructure with fewer resources. The challenges in urban infrastructure investment become even more daunting as manifested by the staggering size of infrastructure funding gap. Therefore, prioritizing projects at the system level based on transparent and evidenced-based decision-making processes has emerged as one of the most promising ways to bridge enormous funding gaps especially for developing countries. To address the current limitations, we propose a scenario-based multi-criteria prioritization framework for urban transportation projects in developing countries and then formulates it. This is done with the efficient use of pre-existing project evaluation information and emergent scenario of various stakeholders’ inputs.
The framework is applied to set priorities for nine recent urban transportation projects constructed within a two-year framework in the Tianjin Binhai New Area, China. The results show that the proposed framework could serve as a consistent, robust, and comprehensive infrastructure project prioritization strategy that reconciles diverse perspectives among stakeholders. It also introduces sustainability in urban transportation decision making and links the prioritization process to the transportation planning that precedes it. More info
Uncertainty Multi-stage Decision Theory and Its Application in Large Scale Water Resources and Hydropower Engineering Construction Projects
The decision-making research of this project is centered on the following aspects:
- optimization: the objective is to use modeling and heuristics (e.g. GA and PSO) techniques to achieve near optimal solutions for decision makers;
- modeling: the objective is to establish multi-objective models, bi-level models or evaluation framework. By using modelling method, solutions are reflected in decision variables in mathematical functions;
- managing uncertainty: the objective is to use fuzzy, random or fuzzy random parameters to reflect practical uncertainties in decision making;
- resolving conflicts: In some cases, many decision makers are involved and incompatible needs and actions (which are defined as conflicts) become inevitable. The objective is to establish equilibrium strategy-based bi-level model to compromise conflicts among decision makers for near optimal win-win or multi-win solutions. The model can provide global reference to all decision makers.
Figure: Key Difficult Activities in Large Scale Water Resources and Hydropower Engineering Construction Projects
Cascading failures in interdependent networks under edge attack strategies
Contemporary people live in a complex environment surrounded by various networks that are visible or invisible, such as communication network, internet, social network, etc. Over the past decades the vulnerability of these networks has been one of the most central topics and has been extensively studied, especially for the case of a single, noninteracting one. However, modern real networks are non-isolated ones and should be modeled as interdependent networks, for example water supply networks, traffic networks, fuel and power stations are coupled together. In recent few years, many researchers have shifted their focus from individual networks on to this coupling and interdependent networks, investigating the cascades of failures by analyzing the cascading dynamics including the cascading modeling, the cascade control and defense strategy in the scenarios of attacks on nodes. In view of this, we carry out this project attempting to use classical complex network theory to study the relative problems on cascading failures of interdependent networks caused by initial attacks on edges. First of all, according to the disadvantages of traditional load distribution model, this paper aims to put forward a new load distribution model based on the spare capacity over the neighboring edges of destroyed edges. And on this basis, further to investigate the cascading failure process under different attack strategies (random attacks, deliberate attacks) in different types of coupled networks (ER–ER, WS–WS, SF-SF, NW-NW, ER–WS, NW-SF, and WS-SF). Alternatively, considering the real-world coupling is not one-by–one symmetric coupling as generally assume, this paper tries to quantify the effects of asymmetric interdependency on robustness of coupled networks.
The main research procedure is organized as follows:
- to build up abovementioned types of individual networks by generating the vertexes and corresponding adjacent matrix;
- to model the interdependency and failures propagated between two interconnected network;
- to simulate the models via software and evaluate the robustness of these networks by comparing and analyzing the simulation results.