EED217 Project management

Project managementTU Board 2022

Read the following cases carefully and answer the questions that follow: Khimti I hydropower plant is built with private sector funding as a "BOOT" modality agreement (Build Own Operate and…

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Read the following cases carefully and answer the questions that follow:

Khimti-I hydropower plant is built with private sector funding as a "BOOT" modality agreement (Build Own Operate and Transfer) with Government of Nepal. Its construction was commenced on 26th June, 1996 and commercial operation commenced on 11th July, 2000. Himal Power Limited (HPL) operates the plant and sells electricity to Nepal Electricity Authority(NEA). The plants would be transferred to Government of Nepal at the end of 50 years licensed period. At the end of the first power purchase agreement,NEA will purchase a 50% share of the Khimti powerplant for a nominal fee. The plant is a type of 'run of river 'and Hydroelectric power generation plant designed for an installed generating capacity of 60 Megawatt. The site is located in Dolakha and Ramechhap district. Construction works on Khimti-I Hydropower projects was started in early 1993 by Butwal Power Company limited and then gained. The project holds the record for achieving the highest national tunneling productivity. It has the longest headrace tunnel and penstock in the country. It is also the first project of Nepal to implement the Total Quality Assurance Scheme during construction. Above all, it is the first major hydropower project in Nepal to be completed within the original schedule despite very difficult tunneling condition and other problems encountered. Employees of Khimti Services Pvt. Ltd. (KSPL) who work for Himal Power Limited (HPL) have threatened to close down the 60 MW Khimti-I hydropower plant if their demand of treatment at par with HPL employees were not met. At least 89 KSPL employees working at HPL head office in Jhamsikhel,Khimti Project's head works office in Ramechaap and power plant in Dolakha have locked- off their respective office. It was a story of 2009. They had given 13-days' ultimatum to HPL to consider their demands. "We work in the same field, for the same organization and carry out the similar work but are biased against when it comes to bonus and perks. We want bonus and facilities on par with KSPL employees", said Ramesh Maharjan, Vice president of Khimti hydropower, Nepal, Independent Chemical and Iron Workers Union. "If the HPL does not hold talks with us, we'll halt all the work at power plant and the head office." Most drivers, cooks, gardeners, sweepers and guards at the KSPL are Dolakha locals. "We were assured of equal pay and perks prior to our transfer. It turned out to b e a false assurance once we were into the new company", said Kashinath Bajgain, a cook at KSPL. Tom Solberg, General Manager of HPL said, 'he was a separate entity and the KSPL employees' agitation against HPL was not justified. "The facilities and bonuses they are talking about are impracticable," said Solberg.

Questions: a. What were the issues of the case mentioned above? b. Can government get benefit from such kinds of project which run under the BOOT modality? c. Why employees are doing strike in the project? d. If you remain in the position of Solberg, how can you manage the problem of project?

A worked answer is on its wayMeanwhile, read the Project management notes for this topic.

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