1 Stakeholders’ Assessment of the Infrastructure Project Delays and their Causal Factors Ramakrishna Nallathiga, Aarti Wakhloo, Avirup Bhattacharya

2 BACKGROUND & INTRODUCTION Infrastructure development has been one of the main policy priority for quite some time in India and huge investment targets were laid down for it in Tenth Five Year Plan. However, the response at execution falls short of target and it is here that the lack of project development process has become common in infrastructure sector. This affects the country in terms of money losses & other cascading effects on other sectors as well as the economy at large. Infrastructure development projects, therefore, need to be expedited, especially the construction component needs to rise up. This study is an attempt to analyse the delays and causal factors in the case of infrastructure projects from stakeholders perspective. Presentation Title

3 RESEARCH METHODOLOGY Data Acquisition A primary survey was conducted on sample of respondents who are associated with infrastructure development projects They are grouped under following stakeholder groups: Project Awarders (Clients/ Government) Project Awardees (Contractors) Project Management Consultants (Consultants) Project Finance Consultants (Financiers) Questionnaire Survey Presentation Title The respondents were given a shortlisted causal factors of delays and asked to give rating The representatives of firms were asked to rate factors on a Likert scale of 1-5, where 1 - Least important; 2 - Less important; 3 – Important; 4 - Very important; 5 - Most important

4 Presentation Title  Analysis based on Overall and Stakeholder-group-wise ranking The responses of stakeholders were analysed using 1.Overall ranking of Stakeholders 2.Stakeholder-wise ranking  Analysis of Causal Factors Based on Relative Importance Index (RII) Relative Importance Index (RII) = Where S i is the score given on likert scale, N i is the number of responses to each score, A is the highest rank and N is the total number of observations. Weightage is ranking given to each factor by the respondents, ranging from 1 to 5, A is the highest weight (i.e. 5 in the study) and N is the total number of samples (i.e., 33). Data Analysis

5  Profile of the Respondents 33.33% years 27.27% years 21.21%- more than 75 years 18.18% years 72.73%-PAN India 15.15%-Eastern India 6.06%-Northern India 3.03%-Western and Central India

%-more than 40 projects 18.18% projects 18.18%-less than 20 projects 12.12% projects 3.03%-PPP projects 12.12%-Government projects 18.18%-Private projects 66.67%-All types of projects

7 RESULTS AND FINDINGS  Overall Ranking of Factors Causing Delays in Infrastructure Projects (Planning Phase) Presentation Title Factors Affecting Planning PhaseMean ScoresRanks Standard Deviation Land Acquisition Issues Environmental Clearance (from MoEF) Rehabilitation & Resettlement Issues Project Affected People(PAP) Issues due to Compensation offered Clearances from various Departments & Agencies (Local/State/National Govt)

8 Presentation Title  Overall Ranking of Factors Causing Delays in Infrastructure Projects (Execution Phase) Factors Affecting Execution PhaseMean ScoresRanks Standard Deviation Procurement of Materials Cost of Inputs (material, labour and capital) Government Norms & Legislations Contractual Claims Issues/disputes amongst the “parties involved in the project”(client, contractor & consultant) Project “Contract Closure” Issues

9 Presentation Title  Stakeholder-wise Ranking of Factors Causing Delays in Infrastructure projects (Planning Phase) Mean Score of the Stakeholders with Ranks Factors Affecting Planning Phase Awarders (Client/ Govt) Awardees (Contractor) Consultants Financial Consultants Land Acquisition Issues 3.80 (3) 4.00 (2) 2.33 (6) 2.11 (5) Environmental Clearance (from MoEF) 4.10 (1) 3.73 (3) 3.00 (3) 2.33 (2) Rehabilitation & Resettlement Issues 3.00 (4) 3.18 (6) 2.67 (5) 2.33 (3) Project Affected People(PAP) 3.00 (5) 3.64 (4) 2.67 (4) 2.33 (4) Issues due to Compensation Offered 2.90 (6) 3.45 (5) 3.00 (2) 2.00 (6) Clearances from Various Departments & Agencies (Local/State/National Govt) 4.00 (6) 4.09 (1) 3.67 (1) 2.89 (1)

10 Presentation Title  Stakeholder-wise Ranking of Factors Causing Delays in Infrastructure projects (Execution Phase) Mean Score of the Stakeholders with Ranks Factors Affecting Execution Phase Awarders (Client/ Govt) Awardees (Contractor) Consultants Financial Consultants Procurement of Materials3.20 (5) 2.91 (5) 1.67 (6) 1.78 (5) Cost of Inputs (material, labour and capital) 3.30 (4) 2.73 (6) 2.33 (5) 1.56 (6) Government Norms & Legislations 3.40 (2) 3.27 (4) 3.33 (4) 2.67 (1) Contractual Claims3.40 (3) 3.55 (2) 3.33 (3) 2.56 (2) Issues/disputes amongst the “parties involved”(client, contractor & consultant) 3.50 (1) 3.36 (3) 4.33 (1) 2.22 (4) Project “Contract Closure” Issues 2.90 (6) 3.64 (1) 3.67 (2) 2.44 (3)

11  Relative Importance Index of the factors in Planning Phase Presentation Title 12345RIIRanks Land Acquisition Issues Environmental Clearance (from MoEF) Rehabilitation & Resettlement Issues Project Affected People(PAP) Issues due to Compensation Offered Clearances from Various Departments & Agencies (Local/State/National Govt)

12  Relative Importance Index of the factors in Execution Phase Presentation Title 12345RIIRanks Procurement of Materials Cost of Inputs (material, labour and capital) Government Norms & Legislations Contractual Claims Issues/disputes amongst the “parties involved”(client, contractor & consultant) Project “Contract Closure” Issues

13 CONCLUSIONS AND SUGGESTIONS The analysis of the factors causing delays in infrastructure projects based on the overall ranking gives rise to the importance of: –Clearances from Departments/ Agencies during Planning Phase –Contractual Claims during Execution Phase Stakeholders’ scoring/ranking analysis presents a convergence of perceptions about the major factor – Clearances - among stakeholder groups in the planning stage but not in the implementation stage. The RII analysis gives better presentation and the findings from it also support/ reinforce the findings from normal mean score based ranking. In spite of consensus on major causal factors of delays, there is a greater divergence on ranking of other causal factors, which renders the project stakeholders not working with synergies and coordination. Presentation Title