Assessment of Project Management Tools and
Techniques in Hydropower Projects in Koshi
Province, Nepal
Student: Aashish Pokharel
Supervisor: Prof. Dr. Hari Krishna Shrestha
Submitted Date:
September, 2024
Abstract
Hydropower is a cornerstone of Nepal's clean energy strategy, crucial for driving
economic growth and advancing sustainable energy solutions, particularly with its rapid
development in Koshi Province. As a reliable and cost-effective renewable energy source,
hydropower's success hinges on efficient project management and the effective utilization
of Project Management Tools and Techniques (PMTT), which are vital for enhancing
project efficiency and minimizing time and cost overruns. Despite their global success in
complex projects, hydropower projects in Nepal still face challenges, including significant
delays and cost overruns, which undermine their full potential and benefits.
The primary objective of this research is to assess the current status, impacts on project
performance, barriers, and strategies for effective utilization of PMTT in hydropower
projects within Koshi Province, Nepal. A mixed-methods approach is employed for data
collection and analysis, incorporating both questionnaire surveys and Key Informant
Interviews (KII). Engineers representing Clients, Consultants and Contractors involved in
hydropower projects in Koshi Province participated in the survey. The statistical tools such
as Bloom's Cutoff and Principal Component Analysis (PCA) using SPSS, have been carried
out for quantitative data analysis and thematic analysis for the data collected through KII.
The findings of the study indicate that the utilization of PMTT in hydropower sector is
predominantly low. The major impacts of PMTT on project performance are project
efficiency and optimization, quality assurance and risk management, cost effective, and
enhanced documentation quality. Likewise, comprehensive project and financial
management, project quality and stakeholder satisfaction, and market competitiveness and
reputation are the principal impacts of PMTT on overall project success. The findings
indicated that implementation and adoption barriers, planning and organizational
deficiencies, management and expertise shortcomings, financial and cost constraints, and
communication and governance issues are the significant barriers for utilizing PMTT.
vii
The main strategies identified to overcome the barriers and make effective utilization of
PMTT includes mandating PMTT in bidding, enhancing training and communication,
optimizing tools, and strengthening governance with clear organizational structures and
recruitment of competent personnel at key positions. These strategies aim in enhancing
project productivity, reducing cost overruns, and ensuring timely project completion.
Keywords
Hydropower is a cornerstone of Nepal's clean energy strategy, crucial for driving
economic growth and advancing sustainable energy solutions, particularly with its rapid
development in Koshi Province. As a reliable and cost-effective renewable energy source,
hydropower's success hinges on efficient project management and the effective utilization
of Project Management Tools and Techniques (PMTT), which are vital for enhancing
project efficiency and minimizing time and cost overruns. Despite their global success in
complex projects, hydropower projects in Nepal still face challenges, including significant
delays and cost overruns, which undermine their full potential and benefits.
The primary objective of this research is to assess the current status, impacts on project
performance, barriers, and strategies for effective utilization of PMTT in hydropower
projects within Koshi Province, Nepal. A mixed-methods approach is employed for data
collection and analysis, incorporating both questionnaire surveys and Key Informant
Interviews (KII). Engineers representing Clients, Consultants and Contractors involved in
hydropower projects in Koshi Province participated in the survey. The statistical tools such
as Bloom's Cutoff and Principal Component Analysis (PCA) using SPSS, have been carried
out for quantitative data analysis and thematic analysis for the data collected through KII.
The findings of the study indicate that the utilization of PMTT in hydropower sector is
predominantly low. The major impacts of PMTT on project performance are project
efficiency and optimization, quality assurance and risk management, cost effective, and
enhanced documentation quality. Likewise, comprehensive project and financial
management, project quality and stakeholder satisfaction, and market competitiveness and
reputation are the principal impacts of PMTT on overall project success. The findings
indicated that implementation and adoption barriers, planning and organizational
deficiencies, management and expertise shortcomings, financial and cost constraints, and
communication and governance issues are the significant barriers for utilizing PMTT.
vii
The main strategies identified to overcome the barriers and make effective utilization of
PMTT includes mandating PMTT in bidding, enhancing training and communication,
optimizing tools, and strengthening governance with clear organizational structures and
recruitment of competent personnel at key positions. These strategies aim in enhancing
project productivity, reducing cost overruns, and ensuring timely project completion.