Latest update November 17th, 2024 1:00 AM
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Don’t rush through planning of mega-projects – Engineers’ Association
A representation of the Wales Gas-to-Energy Project.
Kaieteur News – The Guyana Association of Professional Engineers (GAPE) in its quarterly report is urging that careful planning be implemented as the country embarks on a number of US billion dollar projects.
One such mega-project that is expected to commence this year is the gas-to-energy project. One aspect of the project, that is, the laying of the pipeline to transport the gas from the Liza Field in the Stabroek Block to the Wales development site is expected to cost some US$1.3 billion. Another aspect of the project to be pursued by government will see a Natural Gas Liquids (NGL) plant being constructed to treat and separate the gas which will then be used to generate some 300 megawatts of electricity.
In its report, the engineers quoted an Oxford Professor, Bent Flyvbjerg, who said rushing through decisions for an early construction start can result in failures for such ventures.
According to Flyvbjerg: “Front-end planning needs to be thorough before deciding whether to give the green-light to a project or stopping it. But often the situation is the exact opposite. Front-end planning is scant, bad projects are not stopped, implementation phases and delays are long, costs soar, and benefits and revenue realisation recedes into the future.”
The Professor explained that project delays are a sore issue for these massive ventures which cause cost overruns and benefit shortfalls. In this regard, he said, it is especially important to not use this as an excuse to fast track construction. “The key lesson here is that in order to keep costs down, implementation phases should be kept short and delays small. This should not be seen as an excuse for fast tracking projects, that is, rushing them through decision making for early construction start.”
Mega-projects are defined as complex projects costing US$1 billion or more which attract significant public attention due to their outsized socio-economic impact.
In Guyana, the association reminded that we are on the cusp of undertaking at least two notable mega-projects which are within this range; namely the gas-to-energy project at Wales and the Amaila Falls Hydropower project.
“Megaprojects are new to Guyana, and in many respects, they are a consequence of our recent economic good fortune, a factor which will spawn many more mega-projects in the coming years. Considering their complexity and their troubling rate of failure, it would be wise for us to learn the lessons from mega-projects implementation worldwide to reduce the likelihood of encountering the same problems,” GAPE says in its report.
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