Parametric Modeling of the Cost of Power Plant Projects

Estimating a realistic budget for a complex power plant projects is always challenging, which results in cost overruns of such projects worldwide. Many factors affect the cost of power plant projects. Among others, quantifying the effects of the project’s specific attributes and the country’s economic parameters are always ignored in the existing literature. Thus, the broader aim of this study is to analyze the effects of the project’s specific attributes and the country’s economic parameters on allocating the costs of different power plant projects. Accordingly, this study first analyzes the development trends of power plant projects in Bangladesh and determines the factors affecting power plant projects’ costs using parametric analysis. Following that, the effects of project attributes and the country’s economic parameters on project budgets are quantified using multiple linear regression models. Finally, a parametric model is developed for predicting the cost of a power plant project. The study outcomes will help policy planners or top-level decision-makers prepare budgets for future power plant projects in Bangladesh and economically similar countries.