1. WELCOME TO THE CPD CERTIFIED WORKSHOP PROGRAMME 7-9 NOVEMBER 2018
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2. SPEAKER: Nashon Okowa Project Manager & Chairman ACMK
Presentación Title:
HOW TO MANAGE MEGA CONSTRUCTION PROJECT IN EAST AFRICA

3. MANAGING MEGA CONSTRUCTION PROJECTS
TABLE OF CONTENT:
EAST AFRICA STATISTICS
WHY TIME & COST OVERRUN IS STILL A MAJOR CHALLENGE
CASE STUDY EXAMPLES.
THE NEED FOR A COMPETENT PROJECT AND CONSTRUCTION MANAGER.
CONSTRUCTION OF MEGA PROJECTS; WHY FOREIGN CONTACTORS HAVE AN EDGE AND WHAT WE NEED TO DO
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4. WHY TIME & COST OVERUN IS STILL A MAJOR CHALLENGE
EAST AFRICA INCLUDE:
KENYA, UGANDA, TANZANIA, ETHIOPIA, RWANDA, UGANDA, DJIBOUTI, SOUTH SUDAN & ERITERIA
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5. STATISTICS OF MEGA CONSTRUCTION PROJECTS IN EAST AFRICA
PROJECTS BY SECTOR:
Energy & Power (22.5%)
Transport (52.1%)
Real estate (14.1%)
Water (5.6%)
Oil & gas (1.4%)
Shipping & Port (2.8%)
Education (1.4%)
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6. STATISTICS OF MEGA CONSTRUCTION PROJECTS IN EAST AFRICA
WHO OWNS:
Government (90.1%)
China (1.4%)
USA (1.4%)
Private domestic (4.2%)
UAE (1.4%)
Singapore (1.4%)
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7. STATISTICS OF MEGA CONSTRUCTION PROJECTS IN EAST AFRICA
WHO FUNDS:
Government (15.5%)
China(25.4%)
USA(2.8%)
EU(4.2%)
International DFIs(19.7%)
Africa DFIs(16.9%)
Single Countries(7%)
Private domestic(4.2%)
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8. STATISTICS OF MEGA CONSTRUCTION PROJECTS IN EAST AFRICA
WHO BUILDS:
China (53.5%)
Private Domestic (11.3%)
Middle East (8.5%)
Other European countries (8.5%)
India (4.2%)
Single countries (5.6%)
Italy (4.2%)
Japan (4.2%)
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9. EXAMPLES OF MEGA CONSTRUCTION PROJECTS IN EAST AFRICA
COUNTRY
PROJECT
SECTOR
AMOUNT(USD)
ETHIOPIA
Grand Ethiopian Renaissance Dam
ENERGY & POWER
4.1
Koysha Hydroelectric Dam
2.8
RWANDA
Kigali Innovation City
REAL ESTATE
1.9
Awash-Woldia-Hara Gebeya Rail Project
TRANSPORT
1.7
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10. EXAMPLES OF MEGA CONSTRUCTION PROJECTS IN EAST AFRICA
COUNTRY
PROJECT
SECTOR
AMOUNT(USD)
UGANDA
Karuma Hydro Power Plant
ENERGY&POWER
1.6
KENYA
Nairobi - Naivasha
TRANSPORT
1.5
TANZANIA
Mtwara Gas Project
OIL & GAS
1.3
ETHIOPIA
Mieso-Dire Dawa-Dewele Railway Line
1.2
Central Railway 1
Lake Turkana Wind Power Project
ENERGY & POWER
0.9
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11. WHY TIME & COST OVERRUN IS STILL A MAJOR CHALLENGE
Songo IPP GAS (Tanzania) – 50% Cost overrun approx $100million
Tanzania – Zambia highway – 54% cost overrun and 50 months delay.
Soccer city (South Africa) – 174% cost overrun
Ajaokuta Steel plant (Nigeria) – 40 years delay
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12. WHY TIME & COST OVERRUN IS STILL A MAJOR CHALLENGE Cont.
STATISTICS:
Seven of Africa’s top 20 projects under construction are likely to be completed on time.
In Kenya approximately 48% of projects report a cost overrun and 87% of projects have a time overrun.
It is estimated that Nigeria’s transport infrastructure projects cost on average 14% more than the initial cost estimates and take approximately 188% longer to complete. Seven out of ten projects in Nigeria are delayed.
Only 25% of projects in Ghana were completed on time and within budget
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13. WHY TIME & COST OVERRUN IS STILL A MAJOR CHALLENGE Cont.
STATISTICS
TYPE OF PROJECT
%ON TIME
%DELAYED
PPP
50%
PRIVATE
75%
25%
PUBLIC
16.7%
83.3%
TOTAL
35%
65%
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14. WHY TIME & COST OVERRUN IS STILL A MAJOR CHALLENGE Cont.
REASONS:
Mismatch between opportunity & bankable feasibility
Poor front-end planning.
Incomplete design documentation.
Poor management of risks.
Inadequate capability to manage complex projects
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15. WHY TIME & COST OVERRUN IS STILL A MAJOR CHALLENGE Cont.
6. Poorly defined contracting strategy and structuring of project team.
7. Inappropriate contracts.
8. Poor management of professional team
9. Significant problems in project leadership continuity.
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16. THE NEED FOR A COMPETENT PROJECT MANAGER
TO MANAGE COMPONENTS OF A PROJECT:
Time management
Cost management
Quality management
Scope management
Communication management
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17. THE NEED FOR A COMPETENT PROJECT MANAGER Cont.
Risk management
Procurement management
Integration management
Resource management
Stakeholders management
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18. WHY FOREIGN CONTRACTORS HAVE AN EDGE
Financial capital (EXIM banks)
Skilled workforce to execute and manage the projects.
Adequate plant and machinery
Proper back-room office staff
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19. WHY FOREIGN CONTRACTORS HAVE AN EDGE
WHAT WE NEED TO DO:
CONSTRUCTION BANK?
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20. IF YOUR BADGE WAS SCANNED IN THE FIRST 30 MINUTES OF THE SESSION,
YOUR CERTIFICATE WILL READY AT
THE CPD COLLECTION POINT
IN TWO HOURS TIME
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21. Nashon Okowa