...Case Study – Dulhasti Power Plant The Dulhasti hydro-energy power plant is a run-of-the-river plant on the Chandra River which is a tributary of the Chenab River located in northern Indian provinces of Jammu and Kashmir. Dulhasti is the first hydropower utility of India and the best example of a project management tragedy. In 1989, the Dulhasti project contract was first assigned to a French consortium promising to complete in 57 months and with a budget of $ 50 million. Despite their request for revising the price, the Indian government refused their request and gathered organizations for a second bidding process. The French consortium’s offer was accepted with a lower cost among the European competitors. It is published in India’s news portal that “The Cegelec-Alstom-led French consortium, DSB, which was initially awarded the construction contract in 1989, pulled out and stopped work in August 1992”. [1] In 1996, the project was then undertaken by another Norwegian company, Jaiprakash-Statkraft Anlegg JV which had problems with hiring workers from other states. [2] It is stated in Indian news that even though; the cost was initially estimated at $50 million, by the end of the century, Rs 5,228 crore ($1 billion) had been spent on the project. [3] There were a couple of reasons for why this project failed over time. The plant was intended to be built on an inappropriate location considering the geographical, political and economic challenges. The lack of infrastructure...
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...Executive Summary Fukushima crisis management showed system failures from the public and private actors that led to overall human error and opened a continuous debate within international community about holding nuclear plants under public hands rather than private ones whose incentives clearly differ from the public interest: * The Government and regulatory agencies failed to push Tepco to heed several anomalies and warnings causing the operator to be unprepared at an operational risk level evidencing an embarrassing incompetency to make decisions. * Tepco, as this report will prove below, lacked a culture of safety failing to respond effectively to subsequent events after the accident. For all these, the need to build an adequate resilience framework within the nuclear industry covering the main pillars: Crisis Management, Disaster Recovery, Business Continuity and Emergency Management, are paramount within risk management. Case’s Background On March 11, 2011, Japan suffered an earthquake of magnitude 9.0 with an epicenter near the northeast coast of Honshu, Japan. Consequently, a massive tsunami hit the eastern coast of Japan reaching Tokyo Electric Power Company’s (TEPCO) Fukushima Daiichi nuclear power plant causing the biggest nuclear accident in the history. Russian experts have declared that could be considered even worse than Chernobyl’s disaster 20 year ago (New Zealand Herald Online, 2 April 2011). The...
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...RUNNING HEADER: Individual Assignment Experiential Exercise Kristina Pelly Indiana Wesleyan University The two companies I chose to evaluate are China International Water and Electric Corporation and Tokyo Electric Power Company (TEPCO). China International Water and Electric Corporation are located in China, whereas Tokyo Electric Power Company is located in Japan. TEPCO serves Tokyo. As of January 15, 2012 the Fukushima Daiichi Nuclear Power Plant has shut down. This is an environmental risk of TEPCO in Japan. They utilize nuclear energy, which is not safe when a plant fails. Currently, TEPCO is offering compensation to those whom were affected by the plant shutting down. Most of Tokyo is currently without power. Tokyo is also affected by drastic and random blackouts that cause a lot of problem for their residents (TEPCO 2011). According to the China International Water and Electric Corporation (CWE) website, they are an exclusively invested subsidiary of the China Three Gorges Corporation. They invest in both electric and water and have been practicing hydropower energy for nearly fifty-four years. They are a state-owned corporation and have been contracting projects on an international basis since the 1980s. Not to mention, the China International Water and Electric Corporation are one of the top 225 International Contractors for the past twenty years (CWE 2011). CWE has accumulated abundant experience in international contracting and engineering, bring...
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...Chapter 4 Concentrating Solar Power Clean energy for the electric Grid Gary Gereffi and Kristen Dubay Jess Robinson and Yuber Romero Contributing CGGC researchers: by Summary Concentrating solar power (CSP), also referred to as concentrating solar thermal power, represents a powerful, clean, endless, and reliable source of energy with the capacity to entirely satisfy the present and future electricity needs of the United States. Concentrating solar power plants produce no carbon dioxide (CO2), thus reducing carbon emissions from electricity generation by approximately 600 pounds per megawatt-hour (BrightSource Energy, 2008).4 The evolution of CO2 emissions regulations, the pressure of international fossil fuel prices, and the experience, knowledge, and technological readiness amassed during several decades of CSP research have launched the technology into a new era of commercial reality. The United States and Spain have integrated CSP into their national electricity supply grids through large-scale commercial plants. Eight of the 13 biggest planned CSP projects in the world will be located in California and Arizona. The Sun Belt region of the United States, particularly the Southwest, is one of the largest areas in the world for CSP exploitation because of its abundant sunshine. In addition to generating a new clean source of energy, expansion of the industry promises to create economic opportunity for many different businesses along multiple stages of the value...
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...Examine the Case Study: The Dulhasti Power Plan Begun in 1985, the Dulhasti Power project, set in the northern Indian provinces of Jammu and Kashmir, represents an example of a disaster in project cost estimation and delivery. As initially conceived, the project’s cost was estimated at 1.6 billion rupees (about $50 million). By the time the contract was let, the cost estimates had risen to 4.5 billion rupees and later successively to 8, 11, 16, and 24 billion rupees (nearly $750 million). As of 2004, the project has still not been completed, although well over $1 billion has been spent pursuing it. The project was based on a straightforward concept: Dilhasti was designed as a 390MW hydroelectric power plant to be built on the swift-flowing Chenab River in the Doda region, a rugged, mountainous section of the Himalayas, and several hundred kilometers form larger cities. The project sought to build a dam, erect a hydroelectric generating station, and string hundreds of miles of transmission lines starting near the headwaters of a system of rivers flowing onto the plain south of the mountain region. When the contract was awarded at a price of $50 million, the contracting organizations anticipated that the project could be completed in a reasonable time frame. The contract for the power generation project was first awarded to a French consortium, who almost immediately asked for an upward price revision. The Indian government refused, suspecting that the French consortium has...
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...Intro to Project Management Hector Diaz PM3110 7/23/15 Instructor: Muhammad Bashir Unit 5 Assignment 1; Simulation/Case Study: The Dulhasti Power Plant After reviewing case study 8.1 in unit 5 of the textbook Project Management: Achieving Competitive Advantage (2nd Edition), I was tasked to elaborate on the challenges of delivering an accurate cost estimation when working on harsh geographical conditions. It was observed in the case study that the geographical location chosen for the construction of the Dulhasti Power Plant in the provinces of Jammu and Kashmir, had become too much of a concern for investors and project coordinators, mainly due to a disputed border conflict between India and Pakistan. Not only did the budget increased exponentially over a 20-plus year period (due to the fact that this project was conceived in 1983), but concerns about the local terrorist and nationalist groups in and around the border began to raise numerous questions regarding safety and of course, budgeting (in the sense of hiring extra security to patrol the area). When the Indian government used a fixed-price contract to favor the lowest bids when initially beginning the project, it was believed to be the best method of approach at the...
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... CHAPTER EIGHT PROJECT PROFILE – Boston’s Central Artery/Tunnel Project: Updated and Complete 8.1 COST MANAGEMENT Direct vs. Indirect Costs Recurring Versus Nonrecurring Costs Fixed Versus Variable Costs Normal versus Expedited Costs 8.2 COST ESTIMATION Learning Curves in Cost Estimation Project Management Research in Brief: Software Cost Estimation Problems with Cost Estimation PROJECT PROFILE – Heathrow Airport’s New Terminal Five Development 8.3 CREATING A BUDGET Top-Down Budgeting Bottom-Up Budgeting Activity-Based Costing 8.4 DEVELOPING BUDGET CONTINGENCIES Summary Key Terms Solved Problems Discussion Questions Problems Case Study 8.1: The Dulhasti Power Plant Case Study 8.2: London’s Millennium Dome Internet Exercises PMP Certification Sample Questions Integrated Project: Developing the Cost Estimates and Budget Bibliography TRANSPARENCIES 8.1 SOURCES OF PROJECT COSTS 1. DIRECT VS. INDIRECT COSTS 2. RECURRING VS. NON-RECURRING COSTS 3. FIXED VS. VARIABLE COSTS 4. NORMAL VS. EXPEDITED COSTS 8.2 LEARNING CURVE MODEL [pic] 8.3 PROBLEMS WITH COST ESTIMATION 1. LOW INITIAL ESTIMATES 2. UNEXPECTED TECHNICAL DIFFICULTIES 3. LACK OF DEFINITION 4. SPECIFICATION CHANGES 1. EXTERNAL FACTORS ...
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...Project Selection: A MCDM approach Site Selection for Hydro Power Plant using Analytical Hierarchy Process (AHP) Outline: NHPC Limited (Formerly known as National Hydroelectric Power Corporation Ltd.), A Govt. of India Enterprise was established with the objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects. Since its inception in 1975, NHPC has grown to become one of the largest organizations in the field of hydropower development in the country. With its present capabilities, NHPC can undertake all activities from concept to commissioning of Hydroelectric Projects. The Case describes an AHP based approach to evaluate the sites among those identified to potentially set up hydroelectric power plants beyond the XI Plan. Introduction NHPC Limited (Formerly known as National Hydroelectric Power Corporation Ltd.), A Govt. of India Enterprise, was incorporated in the year 1975 with an authorized capital of Rs. 2000 million and with an objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects. Later on NHPC expanded its objects to include development of power in all its aspects through conventional and non-conventional sources in India and abroad. At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with an authorized share capital of Rs. 1,50,000 Million. With an investment base of over Rs.3,17,000 Million Approx. , NHPC...
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...COST AND VALUE MANAGEMENT IN PROJECTS Ray R. Venkataraman and Jeffrey K. Pinto John Wiley & Sons, Inc. This book is printed on acid-free paper. Copyright 2008 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created...
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