Left Bank Outfall Drain Project (LBOD) A Mega FailureTRACK: Boondoggles and broomsticks - Projects that go bad and their discipline

Presenter:Suhail IqbalCEO SysComp International (Pvt.) Ltd.Research Scholar(Strategic and Project Management), MS(Computer Science), MBA(MIS), MBA(Mkt), MA(English), BE(Civil Engineering),MBCS(UK), MIEEE(USA), MACM(USA), MASPRS(USA), MASQ(USA), MCSP(Pak), I Eng MICE(UK), MIE(Pak), PE(Pak), PMP, MCT, MCSE2000+I, MCDBA, A+, Network+, iNet+

INTRODUCTION

A Mega FailureLBOD project commenced in 1986, completed 80-85% in December 1999, seven years after scheduled period, with some remaining works to be taken under the National Drainage Programme (NDP) by 2002. The project cost exceeded almost four times from Rs 8,000 million to Rs 30,000 million.Remains incomplete transferring 15-20% of its workload to NDPOver Time and Over Budget

The project was financed by eight donors:the World Bank (International Development Association. IDA); the Asian Development Bank (ADB); the Department for International Development (DFID-Formerly ODA) of the United Kingdom; the Swiss Development Corporation; the Saudi Fund For Development; the Islamic Development Bank (IDB); the Canadian International Development Agency (CIDA); and the Organization of Petroleum-Exporting Countries (OPEC) Fund.

Local Funding/ResponsibilityThe drainage components of the project are funded by the Federal Government of Pakistan (GOP) through the Water and Power Development Authority (WAPDA). The irrigation components are funded by the Government of Sindh (GOS) through the Irrigation and Power Department (IPD).the Department of Irrigation and Power (DIP)the Directorate of On-farm Water Management (DOWM)

LBOD ProjectThe project was conceived to control water logging of 1.27 million acres in the districts of Nawabshah, Sanghar and Mirpurkhas through a network of open-surface drains that convey the saline effluent pumped by tube wells via a spinal drain and a tidal link into the Arabian Sea. The project consisted of 1,673 drainage wells, 361 scavenger wells, 1,623km surface drains, 1,500km tile drains, 295km interceptor drains, 2,700km electrical distribution lines, remodelling of 470km canals and Chutiari Reservoir with storage capacity of 0.70 million acre feet (MAF).

Kadhan Pateji Outfall Drain (KPOD) Dhoro Puran Outfall Drain (DPOD)

Shakoor Dhand Pateji Dhand Cholri Dhand Sanhro Dhand Mehru Dhand

Runn of Kutch

West Nawabshah MainEast Nawabshah MainSinghoro BranchSanghar MainPatoyun BranchMirpurkhas MainLBOD MainTando Bago BranchLowari BranchSerani BranchFuleli GuniKaro GungroCholri Weir

Project ObjectivesTo increase agriculture productionTo improve the socioeconomic conditions for the rural population in PakistanTo improve irrigation and drainage conditions for an area of about 516,500 hectares (ha) in the southeastern part of Sindh.

Note: The project area is part of the 2.5 million ha catchment of the Left Bank Outfall Drain (LBOD) 25 percent of the land within the project area had been abandoned because of waterlogging and salinity.

Project Cost and FinancingThe total cost at project completion is estimated at $963.0 million, $308.2 million higher than the appraisal estimate of $654.8 million. The 47 percent cost overrun is mainly the result of major cost overruns for surface drainage and canal remodeling, the Chotiari Reservoir, and land acquisition and resettlement. The twice as long implementation period also resulted in large increase in interest during construction.

Project ScheduleAn eight-year implementation period starting in mid-1985 was envisaged at appraisal.Actual implementation started in mid-1986 following the fielding of the consultants. Completion of the Project with the reduced scope was scheduled for the end of 2002, resulting in an implementation period of 16 years.

Project Schedule Variance

ANALYSIS

Principle Factors of Overall Implementation Delaya one-year delay in the engagement of the consultants; shortcomings in designs coupled with insufficient consultations during the design phase with the primary beneficiaries and adversely affected persons; delays in decision making primarily by WAPDA on procurement and contract management matters and by Government of Sindh on resettlement planning; unsatisfactory procurement arrangements and sequencing of contracts; unsatisfactory supervision arrangements during the early implementation phase;poor performance of certain contractors; insufficient consultation with local communities and delays in compensation payments resulting in occasional stoppage of works; the need to redesign part of the canal remodeling works and the Chotiari Reservoir;conditionalities imposed by co financiers during project implementation;budget and delays in the release of counterpart funds shortfalls during certain years. Factors Beyond Control of Borrowerthe serious law and order problems for about three years in the early implementation phase; and the widespread flooding caused by heavy rainfall in 1988, 1992, and 1994.

Issues after OperationTechnical IssuesImproper designCollapse of Cholri weir on June 24, 1998. Catastrophic cyclone of May 21, 1999 caused serious destruction of the Tidal Link.The World Bank suddenly withdrew from the financing of these works. Managerial IssuesBadin & Thatta - turning the eye away from genuine issues. According to a charter of the United Nations, all development of any kind on the upstream ecosystem is bound by the prior approval and agreement of the people living downstream. Environmental IssuesDhand depressions and flow ignoredChanged the geomorphology of the Indus delta considerably Disturbed ecosystem

Consequences of LBOD Project32 people were killed as a result of the LBOD since it was launched in 1997 50,000 acres of agricultural land in eight union councils had been wasted by salinity or water-logging. 10,000 fishermen had lost their livelihood, four vast wetlands - two of them internationally recognized - had been degraded owing to damage to the biodiversity52 species in the area had also been damaged.

Failures, Reasons, CausesDelayed, Over-Budget and Still IncompleteNo Stakeholder AnalysisInfeasible Alternative SelectionNo Risk Identification and PlanningNo Emergency Planning or Crisis ManagementInsufficient Study and AnalysisLack of Domain KnowledgePoor Quality and WorkmanshipIncorrect Environmental Risk AssessmentLack of Proactive approach in PlanningPoor Expectation ManagementNo Coordination/Poor CommunicationLack of proper Maintenance

LESSONS LEARNT

Concepts to Plan and Execute Government Projects Proper Feasibility and Pre-Evaluation of ProjectsPolitical, Cultural and Social consideration in Scope PlanningStakeholder Analysis and Expectation ManagementSufficient Time to be allocated for Survey and Proactive PlanningCorrect Risk Identification, Response Planning and ControlConsistent and Constant Quality Assurance and Control of Project Processes and ProductsStringent Procurement and Contract Management ProceduresTimely Availability of Consultants and Technical ExpertsStrong Communication amongst StakeholdersFinancial Commitment by DonorsSponsorship Commitment by Government at the highest levelProper Maintenance of Project Deliverables

CONCLUSION

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PMG001 - A Manager's Guide to Project ManagementSysComp International (Pvt.) Ltd. PMI Global REPPMG001 - A Manager's Guide to Project ManagementRecognition of the value of project management has grown since 1944. Organizations around the world are turning to project management to achieve corporate objectives. Successful organizations like IBM, AT&T, the US Army and NASA are all employing project management to get the job done.Be it the delivery of a new service, the development of a new product, the implementation of a new technology, or an organizational change, we are all searching for a better, faster, cheaper way of achieving corporate objectives.For most organizations, this means changing the way they currently do business. For many of these organizations, this also means the implementation of project management.The U.S. Information Technology Resource Board (ITRB) advises, Project management provides a proven way to set priorities and achieve results. Make use of project management to gain a realistic perspective on the big picture, to maintain focus on priorities as they evolve, and to help sort out what must be done to make the project a success.SysComp International (Pvt.) Ltd. PMI Global REPPMG001 - A Manager's Guide to Project ManagementI also encourage all of you to visit the PMI Web site at www.pmi.org to learn more about this organization or project management in general.

Presenter: Thank hosts and guests and field any questions. (Note: All statistics presented in this document are as of 30 June 2001.)SysComp International (Pvt.) Ltd. PMI Global REP