TOTAL-COST MANAGEMENT OF INTERDEPENDENT PROJECTS

This paper develops a methodology based on Portfolio Analysis to selec t a configuration of interdependent projects. Several methodologies we re developed to help selection of investment projects. These methodolo gies do not consider interproject dependency. The decision to minimize some kind of costs in a project may have as consequence a very large cost for the whole system. This is particularly true for large project s as: Energy Transmission and Generation, Roads, Railways, Airports, e tc. To assess different options a combinatorial problem is formulated. Resolving this problem will lead to a viable solution which maximizes the performance of the system and minimizes risk. A case is simulated to show different performances and cash flows during projects develop ment.