Computers & Operations Research 33 (2006) 1488 – 1504 www.elsevier.com/locate/cor Developing a projects evaluation system based on multiple attribute value theory Belmiro P.M. Duarte a , ∗ , A. Reis b a GEPSI-PSE Group, CIEPQPF, Departmento de Engenharia Química, Instituto Superior de Engenharia de Coimbra, R. Pedro Nunes, 3030-199 Coimbra, Portugal b Comissão de Coordenação da Região Centro/M.P., R. Bernardim Ribeiro 80, 3000-069 Coimbra, Portugal Available online 15 December 2004 Abstract This paper presents the development process of an evaluation system to help the Portuguese PublicAdministration to choose a portfolio of projects for financing within the scope of Measure 1.5 of the Operational Program of the Portuguese Centro Region. The theoretical tool used is multiple attribute value theory, which focuses on the pre- scription of decisions in non-structured multiple objective decision scenarios. Problem structuring involved defining objectives in agreement with national development program and European Community policies, and attributes to measure the achievement of projects with respect to them. The approach required the assessment of value functions for each of the attributes, validation of independence conditions of decision makers and, finally, the aggregation of single attribute value functions into an overall multiple attribute value function (OMVF). All these structuring steps were carried out based on the preferences of a panel of decision makers with wide experience in managing and selecting projects within similar programs. The system developed, supported by a computer interface, is nowadays used to measure the appropriateness of projects to regional development goals; a project is chosen for financing if its value achieves the threshold. A portfolio of four projects embracing a range of characteristics rich enough to conclude about its performance illustrates its application.  2004 Elsevier Ltd. All rights reserved. Keywords: Public sector; Decision making; Multiple attribute value theory; Project selection ∗ Corresponding author. Fax: +351 239 790 201. E-mail addresses: nop61212@mail.telepac.pt (B.P.M. Duarte), alda.reis@ccr-c.pt (A. Reis). 0305-0548/$ - see front matter  2004 Elsevier Ltd. All rights reserved. doi:10.1016/j.cor.2004.11.003