- 2079 Bhadra · 6 marks
Operating environment makes projects complex, uncertain
Short answer
The Upper Tamakoshi Hydropower Project (456 MW) became complex and uncertain because political changes, price rises, resettlement demands, difficult geology, monsoon floods, landslides and the 2015 earthquake interacted with stakeholders following different interests. These factors delayed commissioning to 2021 and raised cost, forcing schedule revision, extra funds, damage repair and extensive stakeholder management.
Describe with a suitable example, considering a running project of Nepal, how the different operating/task environments make the project more complex and uncertain.
A project operates inside several environments, each with its own changing forces. Their interaction makes the project more complex (many parties and rules) and uncertain (outcomes cannot be predicted).
Example: Upper Tamakoshi Hydropower Project (456 MW)
| Environment | Effect on the project |
|---|---|
| Political | Policy changes, delay in approvals, strikes and bandhs |
| Economic | Rise in prices of cement, steel and fuel; exchange rate affecting the foreign-currency electromechanical contracts; financing from the Employees Provident Fund and other domestic institutions |
| Social | Resettlement, compensation, local demands for jobs and benefits |
| Technical | Long tunnels, difficult geology, imported turbines needing specialist technology |
| Natural | Monsoon floods, landslides and the 2015 earthquake damaged works and access |
| Task environment | Contractors, suppliers, lenders and government agencies each follow their own interests and schedules |
| Legal | Environmental clearance, land acquisition and licence conditions |
The project was delayed by several years (it was finally commissioned in 2021) and its cost increased, because these environments changed during construction. The manager had to revise the schedule, seek extra funds, repair damage and manage many stakeholders, which shows the added complexity and uncertainty.
✓ Answer checked by Claude Opus 5.5 (high effort)
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