Project Risk Management in Hydropower Plant Projects

Weddy Bernadi Sudirman and Sarwono Hardjomuljadi

Journal of Infrastructure Development, 2011, vol. 3, issue 2, 171-186

Abstract: The development of hydroelectric power plant is one of the efforts in utilising water resources for people’s welfare by generating the energy for electricity purpose. Nowadays, the installed capacity of hydro electric power plants is 3,529 MW from the total installed capacity 24,846 MW from various power plants owned by PT PLN (Persero) and the hydropower potential 75,000 MW all over Indonesia. Hydroelectric power plant has complex structures and involves large amounts of capital with a long-running construction period. This situation imposes uncertainty factors with considerably high risks. The construction phase is identified as a critical phase in hydropower projects where many unforeseen factors occur. Failure to manage project risks leads to significant problems for the client such as completion time delays and cost overruns. In order to prevent time delays and cost overruns in hydropower construction in PT PLN (Persero), the study on project risk management in the construction stage of hydropower plant projects had been conducted. The purpose of this study was to identify and measure the importance of construction risks and to determine the level of agreement or disagreement between the client, consultants and contractors on the ranking of construction risk in hydropower projects. The author selected the respondents from the clients, consultants and contractors’ personnel who had work experience in hydropower construction projects in PT PLN (Persero). JEL Classification: L74—Construction

Keywords: Hydro power; large capital; construction risk (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jouinf:v:3:y:2011:i:2:p:171-186

DOI: 10.1177/097493061100300205

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