Challenges
and opportunities in implementing mega projects
Over the past decade, under
the foresight of the current government, dozens of mega projects have been
undertaken in 11 sectors including roads and highways, bridges, rail links,
metrorail, power, airports, seaports, defence, deltaplan, satellites, special
economic zones, which are at various stages of implementation. It has created opportunities to accelerate the country's
social development, economic growth, technological innovation and urbanization. Mega projects are large-scale, complex undertakings that
typically cost a billion US dollars or more, take years to plan and implement,
involve multiple public and private stakeholders, and affect millions of
people. However, the one billion dollar
investment limit applies only to developed countries. Because its implementation may be difficult for several
developing countries, including Bangladesh, whose gross domestic product (GDP)
is only a few hundred billion US dollars. Zero.01
percent of global GDP has been proposed as a reasonable criterion to replace its
criteria for defining mega projects. So for a
country like ours a very small project (eg $100 million) can be considered a
mega project.
Now the question is, why mega
projects are so attractive to the government of developing countries? Governments in developing countries, where about 85.4 percent
of the world's population lives, are rapidly implementing mega projects in
various sectors to achieve their goals of social and economic sustainable
development. In addition, mega projects
attract the attention and political interest of the national and international
community due to their direct and indirect impact on public, budgetary and
environmental investments. Needless to say, many times
politicians in developing countries also derive political gratification from
unveiling plaques to publicize their contributions. Moreover, mega projects are media magnets. It also acts as a regulator in project acceptance. However, the government's main objective should be to
implement major infrastructure projects that can transform the country's
economy. Let's take the case of the
Panama Canal. It accounts for a significant
portion of the Republic of Panama's GDP. Again,
Dubai International Airport is the busiest airport in the world, accounting for
21 percent of Dubai's employment and 27 percent of GDP. Hong Kong, on the other hand, has been instrumental in
decentralizing the densely populated city with its clean and fast subway
system, which has duly served the purpose of implementing the mega project. In fact, it is almost impossible to think about these places
without these infrastructures. I think
the mega projects being implemented by the current government have already
managed to have a large footprint internationally. For example, by building the Padma multipurpose bridge on the
banks of the Pramatta Padma river, the government has been completely
successful in attracting the attention of the entire world community. However, on the eve of construction of the Padma
multi-purpose bridge, the target of 1.23 percent of the country's GDP and 2.5
percent of the southern region's GDP has to be achieved. Otherwise, the benefits of the investment that were supposed
to be received, will not be fully realized.
If you want to talk about the
challenges of implementing mega projects in developing countries, the first
thing that comes up is the engineering challenge. Because implementing mega projects in developing
countries requires unique design knowledge, skills and experience. But what is very regrettable is the lack of
professional skills, lack of complete understanding of scientific and technical
requirements, as well as wrong decisions and often ignoring the advice of
experts and stakeholders during the decision-making process. Also in developing countries labor is the
lifeblood of any construction project. They are the workforce that produces the final
product. Therefore,
it is essential to improve the skills and increase the capacity of the
construction industry to increase the productivity and ensure the quality of
the constructed projects. But these things are always considered less important. On the other hand, bureaucracy and corruption
practices in developing countries often become major challenges in the
implementation of mega projects. Besides, lack of financial resources, cost control
and venture capital at times also hinders the adoption of mega projects in
developing countries. These problems are mainly the result of developing countries' relatively
small GDP, lack of financial resources and poor country management.
According to research, the success of a mega project is determined
by timeliness, budget adequacy and quality fulfillment, known as 'The Iron
Triangle'. To
justify projects in developing countries, sometimes costs and time are
systematically underestimated and benefits are systematically overestimated. According to many, project managers continue to
message data for project approval until the project falls within the
cost-effectiveness range. But if the actual cost is mentioned, the project will definitely become
unattractive. From
the start such a project is headed for failure. After being awarded an unrealistically low
project budget, the temptation works among contractors to figure out how to fix
fabrication costs and profit margins. After starting the work, it was found that the
design was incomplete, the scope of work was unclear and it was plagued with
problems such as numerous mathematical errors in timing and risk assessment.
Taking into account the above challenges, we must first remember
that in any mega project there is a risk of failure in implementing mega
projects as promised. However, regular time and budget increases indicate systematic errors in
project implementation. This means that these problems can be easily identified and resolved. Also, there are several strategies that can be
adopted, which will multiply the chances of success of mega projects. Such as political stability, elimination of
corruption and appropriate use of technology. These strategies will greatly encourage internal
and external investment and secure financial resources, so that mega projects
are implemented smoothly. We need to realize that providing quality education and professional
training is the key driver of development and prosperity. Therefore, a large part of the GDP should be
spent on education and research, which will also equip the human resources with
the necessary modern knowledge and technical skills. In addition, competitive packages and lucrative
job opportunities will attract expatriate and experienced professional
engineers and talented students—who have completed higher education—to stay or
return to the country. If their involvement in the mega project can be ensured, undoubtedly it
will be possible to implement the mega project according to the quality, cost
and time bound plan.
Author: Communication Specialist
Professor, Bangladesh
University of Engineering, Dhaka