Megaproject-
A megaproject is an extremely large-scale construction and
investment project. According to the Oxford Handbook of
Megaproject Management, "Megaprojects are large-scale,
complex ventures that typically cost $1 billion or more, take
many years to develop and build, involve multiple public and
private stakeholders, are transformational, and impact millions
of people". However, $1 billion is not a constraint in defining
megaprojects; in some contexts a relative approach is
needed, such as in developing countries, where a much
smaller project (such as one with a $100 million budget) could
constitute a megaproject. Therefore, a more general definition
is "Megaprojects are temporary endeavors (i.e. projects)
characterized by: large investment commitment, vast
complexity (especially in organizational terms), and
long-lasting impact on the economy, the environment, and
society".
Bent Flyvbjerg, a professor at the Saïd Business School of the
University of Oxford says that globally, megaprojects make up
8 percent of total global GDP.[4] Megaprojects refer not only
to construction projects but also decommissioning projects,
which are projects that can reach multi-billion budgets, and
have a high level of innovation and complexity, and are
affected by a number of techno-socio-economic and
organizational challenges.
The OFCCP Mega Construction Project (Megaproject)
Program involves projects valued at over $35 million.
Examples of megaprojects-
One of the most common types of megaprojects is
infrastructure projects. This may include building
cross-country highways or levy systems. Here's a list of
additional types of megaprojects you may recognize:
● High-speed railway systems
● Interstate highway systems
● Canals
● Hospitals
● Airports
● Seaports
● The Olympics
● Dams
● Offshore oil extraction
● Container and cruise ships
● Particle accelerators
● The International Space Station
● Tunnels
● Wastewater treatment plants
● Nuclear power plants
Benefits and risks of megaprojects-
When built correctly, megaprojects often have many benefits,
such as bringing more profit to the region and improving the
experiences of those who use or live around it. Here's a list of
other benefits of megaprojects:
● Increasing profit for the organization that constructed it
● Creating and sustaining employment in the area
● Improving productivity
● Improving the environment
● Improving service quality for consumers
● Improving accessibility for a certain region
Building a megaproject also involves risks. Here are a few
common risks that megaprojects often face:
● Making decisions that satisfy all involved stakeholders
● Managing a large budget
● Going over budget
● Changing scope or objectives over time
● Increasing the possibility of delays
● Under Budgeting the project
● Verifying the sustainability of resources
Elements to consider in a megaproject-
In a megaproject, the most important elements to consider are
the purpose of the project, the resources an organization
requires to build it, the timeline, the budget and the
sustainability of the project after completion. Other elements
may include project management processes, a
communication strategy and stakeholder management. Here
are some brief explanations for these elements and why they
matter in a megaproject:
Objective or scope-
When planning a megaproject, one of the most important
considerations is the objectives or scope of the project, or
what the organization wants to accomplish with this project.
Maintaining a set of objectives is important because this may
help organizations manage changes such as schedule and
resource alterations throughout the completion of the project.
This is also important because of the many intricacies
involved with managing a project of this size.
For example, an organization's goals for an infrastructure
project may include establishing an efficient road to ease
traffic congestion on a highway. They may face challenges
such as sudden budget changes while labor crews have
completed only half the project. The project management
team may make major changes such as changing the road's
length or where it connects to the main highway while
maintaining their original efficiency goals. Organizations that
don't maintain their goals throughout the project's completion
may experience effects such as a lengthened schedule or
extra costs.
Resources-
Megaprojects may have hundreds or thousands of resources
coming from different sources. This can include physical labor
crews, building equipment, such as cranes or forklifts, funding
and materials, such as concrete and steel. Resources may
also include different levels of project management teams,
transport vehicles and specialists, such as civil engineers and
pipefitters. Organizations often spend much time delegating
and managing resources during the completion process
because they're the main tools to complete the megaproject.
Managing resources is also important to ensure that the
organization addresses all project requirements and provides
extra support where needed.
Schedule and budget-
A megaproject's schedule often spans years, so organizations
may create a schedule that includes many details for the first
few months but includes generalized goals or deadlines as
the months or years proceed. Creating an initial timeline with
specific goals at the start of the project may help the
organization and employees begin their work by providing an
organizational outline. Because changes or challenges may
occur during any part of the project, some organizations
choose to make generalized schedules that leave space to
accommodate these changes for distant time periods.
A megaproject's budget is also one of the most important
considerations because funding often determines the quality
and quantity of resources. It also often determines the
complexity or functions of the final product. For example,
funding may determine whether a cruise ship has one or two
pools on deck. Megaprojects' complexity often means the
financial department of an organization or project
management team analyzes all aspects of the project to
determine the best way to use the funding. Prices or rates
may change during these projects, so the teams often make
financial adjustments throughout the duration of the work.
Sustainability-
It's important to consider a megaproject's sustainability to
ensure that the final product maintains its original functions or
services after completion. This may reduce the long-term cost
of the project if the final product doesn't require additional,
frequent maintenance. For example, an organization building
a dam may make sure that the initial design and resources
maintain the dam's structural and mechanical integrity to
reduce leaks or power failure.
Sustainability also refers to a megaproject's environmental
impact and whether it improves or has minimal effect on the
surrounding environment. Using the same dam example, the
organization may ensure that the dam has minimal effect on
native wildlife populations. In an industrial or urban setting,
this may include reducing pollution or waste runoff.
Project management processes-
Organizations may evaluate the best way to implement a
project management process before beginning a megaproject.
Considering different management processes may help an
organization determine the most efficient way to complete the
megaproject. This may include analyzing existing
management techniques to determine if the team can improve
them. If an organization chooses to adopt a new management
strategy, it typically makes sure all potential project
management team members understand the strategy before
proceeding. This may include considering possible scenarios
to avoid improvisation or analyzing the potential risks and
benefits of the new methodology.
Stakeholder management-
Stakeholder management usually means creating a way for
stakeholders to effectively communicate their expectations
and support for the project. This may include assigning a
team of representatives from the organization to communicate
with all stakeholders to address concerns or provide progress
updates. Stakeholder management usually helps align all
executives and helps them stay involved in different parts of
the megaproject. Stakeholders may also regularly
communicate with project managers to provide leadership.
Importance of Mega Project
Mega-projects play an important role in solving the needs of
people's livelihood, promoting economic and social
development, and maintaining the sustainable development of
economy, society and ecology. Mega projects are material
drivers for accelerating the economic growth of developing
countries, especially while in transition to development.
Economic Evaluation of Megaprojects-
In the economic evaluation of megaprojects it is very
important to take into account many aspects. Usually the most
important aspect is connected with investment and operation
costs and their possible overflows and the fulfillment of the
time period intended for the project. But it is necessary also to
monitor impacts of the projects on their surroundings. The
HDM-4 model developed by University of Birmingham takes
into account the impact of transport infrastructure projects in
the form of changes in the time consumption, changes in
operation costs for vehicles, social costs connected with car
accidents and new impacts on the environment. But it is
possible to calculate also with other impacts, e. g. impact on
economy of related areas, barrier effect caused by highways
and motorways, sprawling connected with better availability of
urban area, etc. The main objective of the paper is to discuss,
which of possible social-economic impacts could be taken in
evaluation of particular megaprojects into account and which
it is useful or not useful to begin to project into economic
evaluation. Very important it is also to discuss the available or
new methodology of the projection of specific impacts into the
project evaluation.
Mega Project in Bangladesh-
In the last decade, Bangladesh has completed or is almost
done with many important infrastructure projects. Some
examples are the main bridge section of Padma Multipurpose
Bridge and the MRT Line-6, the Uttara to Agargaon section of
Bangladesh’s first metro rail project, which were opened in
June and December 2022, respectively. Other projects are
also nearing completion and are expected to be ready by
2023.
Bangabandhu Sheikh Mujibur Rahman Tunnel
Project-
On February 24, 2019, the construction of the Bangabandhu
Sheikh Mujib Tunnel under the Karnaphuli River began,
connecting the main city of Chittagong with the Anwara
Upazila of Chittagong, which is the country’s commercial
capital. This tunnel, built at a depth of 150 feet in the
Karnaphuli River, is the first underground tunnel project in
Bangladesh. The cost of implementing the project has been
estimated at Tk 10,374 crore, of which Tk 4,461 crore is being
financed by the Bangladesh government, and the remaining
Tk 5,913 crore is being financed by China’s Exim Bank.
The main tunnel is four lanes and 3.4 km long, with two tubes
with a length of 2.45 km and an inner diameter of about 11
(10.80) meters inside the tunnel. The total length of the entire
project is 9.47 km, including 5.35 km of approach road at both
ends of the tunnel, and 727 m of overbridges for entry through
one end and exit through the other end of the tunnel. The
Chinese company, China Communication and Construction
Company Limited, and the Bangladesh Bridge Department
have worked to implement the project. Meanwhile, the work
on the southern part of the tunnel has been fully completed,
and the work on the northern side is also nearing completion.
The tunnel is expected to be inaugurated in March 2023, as
the work on the intersection roads at the Patenga and Anwara
ends of the tunnel is not yet fully completed. Once
operational, the tunnel is expected to carry over 28,000
(28,305) vehicles daily by 2025, rising to around 38,000
(37,946) by 2030. The project will reduce the distance of
Cox’s Bazar district from Chittagong by 40 km and the
distance from Dhaka to Cox’s Bazar by at least 50 km, which
will help reduce costs by reducing the time and fuel
consumption of transporting goods and passengers. The
tunnel will essentially help transform Chittagong into a ‘one
city, two towns’ model, modeled after Shanghai in China. By
doing this, it is expected to accelerate the country’s export
trade by increasing production-oriented activities in
Chittagong and Anwara through industrial development.
Padma Bridge Rail Link project-
The Padma Multipurpose Bridge is one of the notable first 8
fast-track projects of the Bangladesh government. The
construction of the upper road section of this two-story bridge
was completed and opened for traffic in June 2022. However,
the railway connection work in the lower part is still ongoing.
As there was no rail network in the southern part of the
country previously, Bangladesh Railways, under the Padma
Bridge Rail Link Project, is working to establish a completely
new rail network on this route. The budget for this ongoing
mega-project, located around the southern part of the country,
is more than 39 thousand (39,247) crores, of which 85
percent is being funded by the Chinese government and
China Exim Bank, and the remaining 15 percent is being
funded by the Bangladesh government.
The project is being implemented under the G2G model, with
China Railway Group Ltd undertaking the construction work.
Already, construction of 172 km of new railway from Dhaka’s
Kamalapur, via Gendaria and Keraniganj, to Jessore via
Padma Bridge has been completed. The Honorable Minister
of Railways, Md Nurul Islam Sujan, said that this project,
which started in January 2016, will be inaugurated from
Dhaka in June 2023. Along with the construction of 66 major
bridges, 244 minor and medium bridges, culverts, and
underpasses, 6 station platforms, approach roads,
administration buildings, and 14 new stations will also be
constructed under this project.
Dohazari-Cox’s Bazar-Ghundum Railway
project-
Another fast-track project among the ongoing projects in
Bangladesh is the Chittagong-Cox’s Bazar Railway Project.
This 128 km single line dual-gauge track project will directly
connect Cox’s Bazar and Bandarban districts to Chittagong,
starting from Dohazari in Chittagong. The construction of this
project started in March 2018 with a combined financing of
more than Tk 18 thousand crores (18035 crores) from the
Asian Development Bank and the Government of
Bangladesh.
According to project authorities, the Dohazari-Cox’s
Bazar-Gumdhum Railway project has already completed the
construction of a total of 100 km single line-dual gauge
railway line. In addition, 39 major bridges and 242 culverts
have also been constructed around this railway line. Overall,
about 80 percent of the project has been completed, and
preparations are underway to open it to the public in October
2023.
According to the 7th Five-Year Plan and Railway Master Plan
of the Bangladesh Ministry of Planning, it will be possible to
increase goods transportation by 15 percent and passenger
transportation by 10 percent through the Dohazari-Cox’s
Bazar-Gumshum railway project. Furthermore, if the project is
completed, Cox’s Bazar, one of the tourist cities in the country,
will have road, air, and rail connectivity. This will lead to
increased tourism in Cox’s Bazar and Bandarban districts, as
well as an expansion of trade. Such developments will play an
important role in the overall social and economic development
of the region.
Hazrat Shahjalal International Airport Third
Terminal-
The third terminal of Dhaka’s Hazrat Shahjalal International
Airport is one of the ongoing infrastructure development
projects in Bangladesh. Currently, Hazrat Shahjalal
International Airport has the capacity to handle 80 lakh
passengers annually, but the annual passenger traffic is
expected to increase to close to one and a half crore
(1,40,00,000) by 2025 and to two and a half crore
(2,50,00,000) by 2035. To handle this additional passenger
volume, construction work began in December 2019 at a cost
of Tk 21,300 crore with joint funding from the Bangladesh
Government and JICA to construct a third terminal at Hazrat
Shahjalal International Airport. As of now, 51 percent of the
terminal work has been completed, and the terminal is
expected to be opened for public use in October 2023,
according to CAAB Chairman, Air Vice Marshal M Mafidur
Rahman.
The new terminal, spanning 230,000 square meters, will serve
12 million passengers annually, resulting in an increase in the
airport’s annual passenger handling capacity from 80 lahks to
2 crores once the terminal is fully operational. Additionally,
apron parking for a total of 37 aircraft is being constructed at
this terminal, covering an area of about 5.5 lahks (5,42,000)
square meters. The terminal’s 27,000 square meter import
cargo complex unloads over 3 lahks (2,73,470) tonnes of
cargo annually, while the 36,000 square meter export cargo
complex handles about 5.5 lahks (5,46,941) tonnes of cargo
annually. Furthermore, the terminal will have a separate
station with direct connectivity to Metrorail and the Dhaka
Elevated Expressway.
Rooppur Nuclear Power Plant-
The construction of Bangladesh’s first nuclear power plant at
Ruppur started in November 2017. On October 10, 2021,
Bangladesh became the 33rd country in the world to produce
electricity through nuclear reactors with the RPV installation of
the first unit of the power plant. In terms of expenditure, the
budget for this mega-project, the biggest ever in Bangladesh,
has been estimated at $13 (12.65) billion or about 1 lakh 14
thousand crore taka. Under this project, two units with a total
power generation capacity of 2400 MW are being constructed
in two phases. The first unit is going to start generating
electricity on a trial basis by the end of 2023, said Project
Director Dr. Md Shaukat Akbar. According to a source at
Dhaka Tribune, the Uranium-235 fuel required for the first unit
of the nuclear power plant in the country is going to arrive in
September 2023. Currently, Bangladesh has a power
generation capacity of more than 25 thousand MW (25,566).
According to the power system master plan of the power
department, the power generation capacity of Bangladesh by
2030 is more than 40 thousand megawatts, and by 2041, the
target has been set to increase to 60 thousand megawatts.
The Ruppur Nuclear Power Plant will play an important role in
achieving this target. According to Euro Nuclear, 8 and 12
kilowatts of electricity can be generated per kg of coal and
fuel oil, respectively, while around 24,000 megawatts of
electricity can be generated from each kg of Uranium-235. It
is expected that the Ruppur Nuclear Power Plant will play an
important role in the industrial development of Bangladesh as
a cost-effective and reliable power generation source after its
inauguration.
Conclusion -
Mega project is not the panacea to all the infrastructural
deficiencies, rather one of the best available alternatives. It is
the responsibility of the government to confirm that the 'cost
underestimation and benefit overestimation' tendency is
avoided while planning. Mega project promoters, while
promoting their pet-projects, should be handled carefully since
they may create a distorted hall-of- mirrors making the
situation extremely perplexing to decide which projects
deserve undertaking and which not. It is the best project that
should be implemented, not the one that looks best on paper.
These epoch-making initiatives of Bangladesh, taken to date
so far, are just the beginning of a journey-- a journey that can
shed more light on the path towards more prosperity.
