Deficiencies in Project Governance: An Analysis of Infrastructure Development Programme of Multi-Projects (original) (raw)
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Deficiencies in Project Governance: An Analysis of Infrastructure Development Program
Administrative Sciences, 2019
The governance of public sector infrastructure projects became an important topic of interest in the project, program, and portfolio management literature during the last decade. Today, it is becoming a central focus for policymakers seeking to ensure success in selecting, designing, and implementing government-sponsored programs of multi-projects. Due to the multiple underlying risks and complexities, the governance of infrastructure programs constitutes a critical element in strategic planning in developing countries. This paper has analyzed the infrastructure development program in Gilgit-Baltistan (Northern Pakistan), and revealed major shortcomings in the areas of decision-making, stakeholder management, and role ambiguity. Approaches to remedy these shortcomings have, thus, been proposed. Keywords: project governance; program; infrastructure development; Gilgit-Baltistan
INFRASTRUCTURE PROJECT GOVERNANCE: AN ANALYSIS OF PUBLIC SECTOR PROJECT IN NORTHERN PAKISTAN
Infrastructure projects in developing countries have been criticized for cost overrun, delay, substandard construction works, ineffectiveness and low efficiency. In this regard, the project governance approach offers a structured mechanism to analyze and address all of these inherent risks in a timely manner. This study has reviewed the academic literature relating to the need for project governance on infrastructure projects in order to assess the potential causes of the success and failure of projects. The review is further elaborated by discussing a case study, which represents an example of the ill planning of infrastructural development projects in the Northern region of Pakistan. This study suggests the need for exploring potential applications of project governance practices in public sectors of developing countries.
PROJECT GOVERNANCE: A NEED FOR PUBLIC SECTOR INFRASTRUCTURE PROJECTS IN PAKISTAN
Infrastructure projects in developing countries have been criticized for cost overrun, delay,substandard construction works, ineffectiveness and low efficiency. In this regard, projectgovernance approach offers a structured mechanism to detect and address all these inherent risksin a timely manner. This study has tried to review the academic literature relating to the need ofproject governance on infrastructure projects in order to assess the potential causes of success andfailure of projects. The review is further elaborated by discussing a case study, which representsan example of ill planning of infrastructural development projects in Northern region of Pakistan.This study suggests need for exploring potential applications of project governance practices inprivate and public sector of developing countries. Keywords: Project governance, Infrastructure projects, stakeholders
Project governance has become an important subject matter for both the project management environment and the public sector, due to the demands for enhanced project performance. Project professionals in developing countries encounter various challenges while execution of the projects. This paper has analyzed previous studies on Infrastructure development projects and project management practices in Pakistan published in academic journals and conference proceedings. The study reveals the organizational shortfalls and various challenges in the procedures adopted for planning and managing infrastructure projects. As the infrastructural development projects play a key role in the economic growth of developing economies like Pakistan, successful implementation of the projects is, therefore, not only essential but inevitable to achieve development goals. This study identifies the shortcomings and proposes project governance framework for infrastructure development projects, which will enhance the project performance and facilitate the various public-sector organizations, donor agencies involved in policy-making, planning and implementation of development projects.
Governance Impact Assessment on Large Infrastructure Project (LIP) Delivery
Journal of Engineering, Project, and Production Management
The linkage of failures of many projects, including Large Infrastructure Projects (LIPs), to governance problems by previous studies implies that governance impacts projects' performance. Identification and understanding of the impacts have therefore become necessary in order to ensure that projects are governed in a way that will ensure their successful delivery. This study assessed impact of governance on delivery of Large Infrastructure Projects (LIPs) through a three phase research approach. The first phase involved literature review followed by semi-structured interviews with key stakeholders/role players in the governance of eight LIPs in different locations in Nigeria in the second phase. A thematic data analysis of the study's findings was finally conducted in the third phase to identify themes and sub-themes after which conclusions were drawn. The study established that governance impacts LIPs delivery both positively and negatively depending on how the governance is approached. Four LIPs were successful due to proper initiation, setting aside funds for the projects at the onset, proactive risk management, top management support, and simple governance policies and structures. Intuitive initiation on political exigencies, tying funding to erratic sources of funding without contingency arrangement, Procuring Authorities' (PAs) disregard for due process and consultants' advice, failure of a Procuring Authority (PA) to meet contractual obligations and change of government were identified by the study as major governance aspects that led to the abandonment of 4LIPs. The study concluded that there was a need for significant improvement and standardisation of approaches to governance of LIPs particularly in developing countries like Nigeria and accordingly recommends the development of a governance framework containing guidelines, including sanctions for violators, to guide the governance of the projects in the country.
Advances in Civil Engineering
The governance of public sector infrastructure projects became an important area of interest in the literature on project management. Today, it is a focal point for policymakers to ensure successful appraisal and implementation of government-sponsored programs. This paper aims to investigate the current practices of project governance (PG) for steering the public sector infrastructure program in Pakistan. An empirical investigation was carried out among professionals of public sector organizations involved in different infrastructure development projects. Latent construct of PG was validated through second-order confirmatory factor analysis (CFA) and quantified the three dimensions of PG, i.e., portfolio direction (PD), sponsorship, effectiveness, and efficiency (SEE), and disclosure and reporting (DR) through the relative importance index (RII) method. The result showed that DR is among the least practicing dimension having RII = 0.55, while PD and SEE have shown similar prevalence...
Infrastructure is a major input for any productive activity. The financial sustainability and viability of any project is dependent on infrastructure that is provided to that site. In fact, economic development is linked to availability of and the price one has to pay for that provided infrastructure. Similarly the viability of a certain project can change if the price to be paid for a certain infrastructure is very high. In case of a PPP for building, operating, and maintaining the major question that arises is: how to wed good governance to profit motives of private sector keeping in view the quasi-social good character. This flows from the fact that not all infrastructures are commercial. They have to be made amenable to measurement and pricing which is not possible for all kinds of infrastructure, for example street lights. Questions like whose street is it? Who pays? And many other such dilemmas arise. However just because they are not measurable one can’t deny the requirement of these services – water, sanitation or investment to these utilities. Denying any of these services would be nearly denying human rights to the general population. So even if the public sector doesn’t have enough finances to invest in creation, operation and maintenance of these utility services and the private sector shall not step in without the indication of an attractive profit margin, these are basic to the lives of human beings irrespective of their social classes, gender, races and all other identities. What comes out prominently is the clash of interests – despite the best of intents the government is incapable of providing like it used to in its form of the welfare state which is why the private sector is not only invited but encouraged to participate in spite of its profit making motives because it will invest only when it can recover the money on cost plus basis. So governance is important because part of the money (if not fully) is huge public money. For this, the public and private parties involved in the project not only have to be accountable to the people from whom that money is taken, but they also have to give services worth that money they have expended. So as custodians, they have huge responsibility in ensuring good governance policies and practices. The need for good governance arises with withdrawal of state. The vacuum that is formed by the withdrawal is filled by society, state and market, but these three are clearly not at par with each other. So the weaker sections of the population turn out to be the sufferers. There are many institutions but the issue of good governance remains a pressing need throughout the world.