A fuzzy based approach for investment project evaluation

Development may be expressed as improvement of life quality in members of society. The significant projects to play important role to change development way of the countries could be directly implemented by the states. However, states may encourage the private sectors for implementing investment projects which could boost local economy. One of the support instruments is state grant to stimulate private sector investments. In order to effectively use of public resources, the selection of projects is very important process for allocations of grant. Another issue to be considered in determining the projects to be supported is to reduce the socioeconomic disparities among the regions. Therefore, deployment process of grant supports is a multi-criteria decision-making process, taking into account many factors. In this study, a decision support model has been developed for the selection of projects to be supported by public funding. In the model, the fuzzy logic approach is used for more precise and effective rating. In the model, Interval Type-2 AHP method is used in determining criteria weight, but Interval Type-2 Fuzzy TOPSIS method is used in evaluating alternatives. For addressing the measurement difficulties, type-2 fuzzy sets and crisp numbers are simultaneously used in the model. In order to reduce the intra-regional disparities in this study, a model has been developed, sorting the provinces according to socio-economic development levels. Therefore, state resources could be prioritized for allocation to less developed provinces. For a better understanding of the model, a real case study is realized in Middle Black Sea Development Agency.