Project management in NHAI


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Project management in NHAI

  1. 1. Group 3 Anindya Sengupta Anshuman Jaiswal Manuj Awasti Sachin Gupta Santosh Kumar Sahoo Syam Tatineni Ujjwal Kumar Gupta V Balaram V Venkataseshan XLRI GMP 2009-10
  2. 2. <ul><li>The National Highways Authority of India (NHAI) is an autonomous agency of the Government of India </li></ul><ul><li>Constituted by an act of Parliament, the National Highways Authority of India Act, 1988 </li></ul><ul><li>Responsible for management of a network of over 60,000 km </li></ul>XLRI GMP 2009-10
  3. 3. <ul><li>Phase I: Approved in December 2000, at an estimated cost of INR 300 Billion, it included the Golden Quadrilateral (GQ), portions of the NS-EW Corridors, and connectivity of major ports to National Highways </li></ul><ul><li>Phase II: Approved in December 2003, at an estimated cost of INR 343 Billion, it included the completion of the NS-EW corridors and another 486 km of highways. </li></ul>XLRI GMP 2009-10
  4. 4. <ul><li>Phase IIIA: This phase was approved in March 2005, at an estimated cost of INR 222 Billion, it includes an upgrade to 4-lanes of 4,035 km of National Highways. </li></ul><ul><li>Phase IIIB: This was approved in April 2006, at an estimated cost of INR 543 Billion, it includes an upgrade to 4-lanes of 8,074 km of National Highways. </li></ul>XLRI GMP 2009-10
  5. 5. <ul><li>Phase V: Approved in October 2006, it includes upgrades to 6-lanes for 6,500 km, of which 5,700 km is on the GQ. This phase is entirely on a DBFO basis. </li></ul><ul><li>Phase VI: This phase, approved in November 2006, will develop 1,000 km of expressways at an estimated cost of INR 167 Billion. </li></ul><ul><li>Phase VII: This phase, approved in December 2007, will develop ring-roads, bypasses and flyovers to avoid traffic bottlenecks on selected stretches at a cost of INR 167 Billion. </li></ul>XLRI GMP 2009-10
  6. 6. XLRI GMP 2009-10 Total Cost Rs.54,000 Crores US$ 13.2 Billion Likely sources Rs.Cr.   (On 1999 prices) US$ Billions  (On 1999 prices ) Cess on Petrol and Diesel       20,000       4.90 External assistance       20,000       4.90 Market borrowings       10,000        2.40 Private Sector Participation        4,000       1.00
  7. 7. XLRI GMP 2009-10 CORRIDOR AND ITS TOTAL LENGTH  (in km) Cumulative length completed in km (in %) Cum % progress of contracts under implementation By end of last month By end of month under report By end of last month By end of month under report DELHI-MUMBAI  [1419 KM] 1419 (100%) 1419 (100%) - - MUMBAI-CHENNAI  [1290 KM] 1273 (98.68%) 1278 (99.07%) 18.8% (for 164km) 18.8% (for 164km) KOLKATA- CHENNAI  [1684 KM] 1613 (95.78%) 1618 (96.08%) 32.54% (for 197 km) 32.62% (for 197 km) DELHI-KOLKATA  [1453 KM] 1451 (99.86%) 1451 (99.86%) 96.49% (for 283 km) 96.76% (for 283 km)
  8. 8. XLRI GMP 2009-10
  9. 9. XLRI GMP 2009-10 NHDP Port Connectivity Others Total by NHAI GQ NS - EWPh. I & II   NHDP Phase III  NHDP Phase V    NHDP Phase VI  NHDP Phase VII     NHDP   Total Total Length  (Km.) 5,846 7,300 12,109 6,500 1000 700 33,455 380 965 34,800 Already 4-Laned (Km.) 5,766 4,863 1478 163 -        - 12,270 274 899 13,443 Under Implementation (Km.) 80 1,689 3,926 1068 -       41 6,804 100 46 6,950 Contracts Under Implementation (No.) 13 113   59 8 -        - 193 6 9 210 Balance length for award (Km.) - 590 6,705 5,269 1000        659 14,223 6 20 14,249
  10. 10. <ul><li>Government </li></ul><ul><li>Government officials/ machinery </li></ul><ul><li>Private players (Contractors and sub contractors) </li></ul><ul><li>Financers/Banks (World Bank, ADB etc.,) </li></ul><ul><li>Landowners </li></ul><ul><li>Workers </li></ul><ul><li>End users </li></ul><ul><li>Other people who get displaced or benefitted from new NHs </li></ul>
  11. 11. <ul><li>Funds from government and global development banks </li></ul><ul><li>Government officials </li></ul><ul><li>Private employees (including manual laborers, semi skilled professionals, engineers, project managers, finance professionals, auditors, analysts, investors etc.,) </li></ul><ul><li>Material resources including material for laying roads, bridges and other support structures </li></ul>
  12. 14. <ul><ul><li>NHAI follows the method of payment depending upon the percentage of completion of project at the end of every month </li></ul></ul><ul><ul><li>NHAI clearly specifies the payment terms and conditions in its Bidding Document [ Refer: Sub-Clause 60.1 Monthly Statements, Bidding Document of NHAI] </li></ul></ul><ul><ul><li>All contractors are required to produce the CPM chart of their project </li></ul></ul><ul><ul><li>Every month these schedules are reviewed to determine the %-age completion of the project for the finalization of the project. </li></ul></ul><ul><ul><li>Reference: Bidding Document of NHAI from the website </li></ul></ul>XLRI GMP 2009-10
  13. 15. <ul><li>In the recent years the project management of NHAI has improved through various risk mitigation techniques and technologies </li></ul><ul><li>This has helped in reducing the cost and time overruns in the projects. </li></ul><ul><li>This is a clear evidence that the Earned Value Management technique, as discussed in the previous slide, has been successful in NHAI </li></ul>XLRI GMP 2009-10
  14. 16. XLRI GMP 2009-10
  15. 17. XLRI GMP 2009-10
  16. 18. <ul><li>The above factors and the graph show that the NHAI projects are performing better than other sector projects in cost and time overrun in % terms. </li></ul><ul><li>There is a scope of improvement by using the tools like Earned Value Management to monitor the progress of the projects and linking the payments to these tools. </li></ul><ul><li>This requires a change in the organization culture and structure </li></ul>XLRI GMP 2009-10
  17. 20. <ul><li>Fundamentally functional org may create a special project team to handle critical projects. </li></ul><ul><li>Team may include full-time staff from different functional department, may develop its own set of operation procedures. </li></ul>
  18. 21. <ul><li>Training and Documentation (e.g. how to use a new system and understand its benefits) </li></ul><ul><li>Organization Change </li></ul><ul><ul><li>New work will require new skills and jobs. </li></ul></ul><ul><ul><li>Job descriptions will need to be revised </li></ul></ul><ul><ul><li>organization structures will need to be modified, based on the changes in the work. </li></ul></ul><ul><li>Communication Planning </li></ul><ul><ul><li>A Change Management approach, employees proactively receive communications from executives. </li></ul></ul><ul><ul><li>To increase the likelihood that they will embrace the change and see the business value of the change. </li></ul></ul><ul><ul><li>A communication plan outlines the approach to design, develop and deliver key messages about the project.  </li></ul></ul>
  19. 22. <ul><li>Change in the organization structure to cater for the needs of special projects </li></ul><ul><li>Implementation of better IT tools for proper and effective monitoring and closure of the projects </li></ul><ul><li>Adapt latest change management tools to ensure more adaptability of the executives of NHAI </li></ul>XLRI GMP 2009-10
  20. 23. <ul><li>Thank you! </li></ul>XLRI GMP 2009-10