Project Management Brantas River Basin Development and Qurzazate Solar Power Station Projects Term Paper

  • Length: 6 pages
  • Sources: 6
  • Subject: Economics
  • Type: Term Paper
  • Paper: #92342847

Excerpt from Term Paper :

management for any project that is on a large scale is essential in being responsive to the stakeholder's needs and dealing with the main challenges (Hobday, 2000). The two large scale projects in this case which are the Qurzazate Solar Power Station and the Brantas River Basin Development projects requires well-made strategies in order to avoid the overruns of cost and making sure that it fulfills the long-term requirements of their respective areas. In order to completely understand the activity, it is important to carefully study the demands of social/ecological, political/regulatory environment, control/execution, financing model, post-implementation assessments and security safety/challenges. Examining all these components will help in dealing with the complex challenges and also make sure that both the projects meet the requirements of the investors (Chuenpagdee & Jentoft, 2009).

Brantas River Basin Development

Project Overview: effective management is an essential component is large scale projects in dealing with the main challenges and responding to the requirements of the investors. Strategies that are designed for the project are complex to avoid the overruns of costs and to make sure that the long-term requirements of the project are being fulfilled. The government's budget does not fully cover the expense of the maintenance and operation of the infrastructure so it is important that the private sector and the beneficiaries' participation are also required in maintaining and operating the infrastructure and investing in the water resources (Rusfandi, 2007). The project of Brantas River Basin is a multi-purpose and comprehensive project that would allow the development of reservoir and dams and help to improve the irrigation, flood control, water supply and power generation systems. The building of this project needs long-term commitments and large amounts of investments including coordination between stakeholders, regions and sectors. The local and the central government have important roles in cooperation with each other and several offices regarding the project have been established. Other than that, the involvement of public through consultation and awareness campaigns is also an important part of the project as it helps to keep the stakeholders at interest (Rusfandi, 2007).

Demands and Expected Benefits: The main idea of the hydroelectric dam is to control the floods, produce electricity and provide large amounts of irrigation system to the people (Shimomura, 2011). The country came into being from the volcanic activities as a result of which it goes through a lot of disasters occurring from the mudflows, lava and eruptions. The country is topographic and has a unique watercourse situation due to which a lot of floods occur in the country on frequent basis. So to keep this in control, a water management system is needed to protect the country against the floods. The expected outcome of the project is to supply 300Mm3 of raw water/year for industries and for drinking. Other than that the project is also expected to produce 1 billion kWh energy/year, which would supply around 30% production of national food, with the improved system of irrigation (Rusfandi, 2007).

Stakeholders Interest and Assessment: The project helps to grow the economy which would in return help the stakeholders while it also prevents floods as another alternative. The growth in economy increases the demands of water between the industry, agriculture, recreation and tourism sectors. This increases the supply and delivery demands and high pressure on the quality of water is generated. Economic improvement allows the water management to be flexible. The growth in population also affects the utilization and demand of water which in return helps the investors to invest more money into the project (Hidayat, 2009).

Regulatory and Political Context: From the regulatory and the political perspectives, the project is considered to confirm about the amount of water present along with effective control of the water resource by the government. The government as a regulator and owner has a role of policing and controlling water as well as exercising the authority over the public. It is obligated to contribute funds for the welfare of the public and it also has a right to some profit that is gained by RBMA (River Basin Management Agency). The RBMA is responsible for managing the infrastructure and manage the system and it is also responsible for collecting the funds from beneficiaries. Another one of its duty is to promote private and public participation and act accountable to perform activities to investors and shareholders (Rufsandi, 2007).

Environmental and Social Implication: the natural habitat and the ecosystem are disturbed by the river and it also has the potential to disturb the communities who on the other side will be affected by the floods with the construction of the dam. However, the project also helps to increase the output of agriculture and establish the industrial economy. The cause and effects of the government goes through the social welfare, public health and the economic growth due to which political will, public awareness and support is needed to enforce the proper instruments for the project (Hidayat, 2009).

Financial Model Adopted: the finance of the project is provided by the loan from World Bank funds from the government and issuance of the bonds. The government's budget does not fully cover the costs of maintenance and operation which are very high, so high participation of private sectors and beneficiaries in the form of investment is required to fulfill the cost of maintenance and operation of the project (Rusfandi, 2007).

Execution and Control: an independent auditor was posted by the government due to increase in the overruns of the cost. The government also increased the electricity surcharge and also gave more funding to answer the problem. The government formed PJT or the JasaTirta Public Corporation which was responsible to perform activities like supervision, control of resources of water, supplying, rehabilitation, conservation, maintenance and operation, construction and planning (Rufsandi, 2007).

Safety and Safety Considerations: the radicals were the main focus of the security to stop them from disturbing the project. Many standards of safety were also imposed on the contractor responsible for building the infrastructure. Not everyone in the country was satisfied by the project under construction and there are chances that several major problems can be imposed to stop the project.

Post-Implementation Asset Management: This includes the government to charge some fees in order to cover the management costs of sales of water and electricity. The stakeholders' long-term needs were met through control and transparency (Subijanto et al., 2013). The service fee of water and electricity was required to cover the funds, interests, depreciation, maintenance and operations of the river basin (Rufsandi, 2007).

Qurzazate Solar Power Station

Project Overview: Large amounts of sunlight in Morocco are being converted to electricity in the Qurzazate Solar Power Station project. The project is presently under construction and the main aim of the project is to support MASEN and develop a 500 Mw plant and financing its 1st phase by the partnership of government and the private sectors. The project consists of 2 components in which the first component is to finance the beginning stage of the investment, in which through PPP formation between the partner selected and the borrower, while the second stage is to provide support through operations. This will include the production of kilowatt/hours that will be produced to implement and cover the price difference at which the generated electricity by the plant would be bought by the borrower (ESIA, 2011)

Demands and Expected Benefits: the design of the project is to fulfill the requirements of the economy of the country and expand the energy requirements of the country. The storage of thermal energy that is recovered and stored in the eutectic salts would make it possible for the day and night generation of electricity. On the other hand, it also helps to increase employment in the country (ESIA, 2011).

Stakeholders Interests and Assessment: the continuous power provided to the stakeholders addresses their needs and the total amount of estimated investment is 930 million dollars. The implementation of the project will be through the developer's bid invitation after which there would be a set-up of the project company (ESIA, 2011).

Regulatory and Political Context: from the regulatory and political perspective, the project makes sure that the social responsible demands of the public are being fulfilled. The project is a series of developments that are planned in multiple stages with the support of Spanish Consortium TSK-Acciona-Sener. The commercial use of the plant is scheduled to begin in 2015 (ESIA, 2011).

Environmental and Social Implications: the output of carbon is decreased which decreases the negative impacts of the project on several communities. Moreover, it will also bring forward more opportunities for employment and improve the living standards of the area. The economic growth is important for the creation of jobs and the demand for jobs will not only increase globally but locally too (ESIA, 2011).

Financial Model Adopted: the funds for the project are received directly by the World and European Development banks and the African Development. The structuring of the project poses great challenges, but the introduction of…

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