The Role of Engineering Economic Analysis on the Motivation for Private Sector Participation(Case study: Movement of Zayanderud Passenger Terminal)

Urban development plans in Iran have been prepared for over several decades. The purpose of these plans is harmonic physical urban development. However it spends a lot of time and money on preparing these plans, but they can’t achieve their all purposes, especially in public services field and only a little percent of these plans comes true. In the same direction, according to the experiences of experts, not providing financial resources and not affording by urban management is one of the most important reasons of urban development plans unsuccessful. Eliminating this problem is possible by peoples and private part’s participation to be executed urban development plans particularly public and servicing land uses. So, in this research one of the Isfahan development plans suggestions (new terminal building project) is selected as a case study. Firstly incomes and outlays are counted for executing plan, then according an inductive way, it’s tried to analyze economic engineering utility as a motivation tool for more private part’s participation in executing urban development plans. For this purpose, two hypotheses will be explained: First hypotheses: Executing Zayanderood terminal movement project by private part is cost-effective. Second hypotheses: Executing Zayanderood terminal movement project by private part is cost-effective; in addition it’s based on urban planning principles. Testing cost-efficient hypotheses shows constructing suggested terminal isn’t cost-effective by cost and benefit analyzing (NPV) point of view and private part wouldn’t desire to invest and execute the plan. So based on investor expected benefit a piece of terminal ground is dedicated to commercial land use to make cost-efficient, furthermore it causes private part’s motivation for investing and executing passenger terminal land use. Based on second analyze, superposing new plans with urban planning principles are considered and results of consideration shows that confirming second hypotheses. In this research, it is proved economic engineering is useful in executing urban development plans by finding plans benefit measure. So if these plans weren’t cost-effective, land uses and functions should be redesign. Therefore economic engineering presents a model for evaluation of urban development plans and changing it based on 2 items: cost-efficient and private part motivation. Finally some suggestion has been presented about preparing and executing urban development plans process in order to making more economical and executable plans and increase in the private part motivation. Some of Suggestions involve: 1)Using economic engineering analyses in both before preparing suggested plans in order to recognize plans priority and after preparing final suggested in order to economical designing of plans in process of its executing. 2) Searching and studding to recognize some projects that are cost-effective and investors and citizens desire to risk. 3) Reducing Private part investing risk by presenting financial information’s, encourager tools, warranting benefit measure and efficiency joint projects especially about investing in servicing and social land uses. 4) Preparing beneficiary requirements by making winner-winner relationship. 5) Attracting and developing investor’s participation in executing plans by public relations and introducing participation fields. Presented suggestions can be achieved by establishment a department that should manage economic evaluation, private part participation.