Project Ma na ging the Business Ca se Project Ma na ging the - - PDF document

1 Sem ina r on Sem ina r on “ “Recent Dev elop m ent in Project Ma na gem ent in HK Recent Dev elop m ent in Project Ma na gem ent in HK ” ”

• Mr. Russell Bla ck,

Project Director of MTR Corp ora tion Ltd .

12 Ma y 0 6

Project Ma na ging the Business Ca se Project Ma na ging the Business Ca se a s w ell a s Construction a s w ell a s Construction

Well Developed Model in HK Well Developed Model in HK

Government

• Population & employment

forecast

• Ridership & revenue forecasts
• Economic development

growth → Territory-wide Rail Development Strategy

Railway Corporation

• Project Proposal

Preliminary Design Study EIA → Capital / O&M Cost → Detailed Patronage & Revenue Forecasts Request

Project Agreement

Form of Financial Support, roles of involved parties, project scope and risk are WELL UNDERSTOOD Robustly Debated

2

Since 2003,

Shanghai Line 9

• Project Management
• Fee based consultancy
• 31 km, 13 stations

Beijing Line 4

• PPP JV (E&M and Rolling Stock)
• 29 km, 24 stations
• Operate for 30 years

Shenzhen Line 4

• BOT
• 15.8 km, 10 stations (Phase 2)
• together with Phase 1 (5 stations)

Operate for 30 years

Shenzhen Line 3, Wuhan,… ..

Mainland China Mainland China’ ’s Project s Project – – Business Case Business Case

Characteristic

• Unrealistic politically determined completion dates
• Realistic engineering scoping & costing
• Unrealistic patronage & revenue forecasts

Railway Corporation

• Own assessment

→ Scope, programme & cost → Patronage & revenue assessments Financially Viable ?

3

Mainland China Mainland China’ ’s Project s Project – – Project Project Managem ent Managem ent

Hurdles

• Legal & statutory practices significantly different from HK
• Local interpretation of National Regulation
• Rapid changes of regulation & practice

Project Management

• Business/ Project Environment with huge uncertainty

→ Experienced staff + Established study process → Risk Margin <> Quality of available info → Negotiation: Risk mitigation / Risk sharing → Knowledge pool (experience from various China Projects)

Recent Situations in HK Recent Situations in HK

• MTR’s initiative

West Island Line South Island Line

• Route 4 Coastal Road

(Kennedy Town to Cyberport & Aberdeen)

……Debate…… Debate………. Debate….. Debate…….…… Debate..…..

Much Reduced

• population
• Economic

growth

4 Education Programme > Public

→ A substantial body of people who understood what is fact / fiction

A New Practice in HK A New Practice in HK

Successful Examples (WIL & SIL)

• Overwhelming support from Political Parties,

Green Groups & Grassroots → Government > policy support

Public Consultation

• Mixed Engineering Liaison + Public Relations Background
• Liaise with ALL interested parties
• Down to very local level
• Consult, Listen, Response, Answer

A New Practice in HK A New Practice in HK

• Prelim. Design Stage
• Station & Entrance Locations

→ MTR & Public Preferred Scheme

Construction Stage

• PM’s responsibility
• Experienced Individual’s support
• SIOW > Street level Com. relations

Continuous

5

Conclusion Conclusion

Upgrade our Construction Industry Well Rounded Versatile professional staff at All levels of management

Drive

Thank You Thank You