Effective material management plays a crucial role for the success of the project in general and particular for hydropower projects which by virtue located in challenging location in terms of supply and delivery of material in bulk volume every time. In the context of Nepal, material management in construction of hydropower project is one of the major concerns. As of FY 2022/23 a total installed capacity of 3,718 MW are under construction stage with estimated cost of about NPR. 750 billion. Considering 60% to 70% of direct cost of construction of hydropower projects, construction materials accounts about NPR. 450 to 525 billion. Material represents a major expense in construction of hydropower projects but it has been largely overlooked by researchers and academics in the context of Nepal's hydropower sector. To overcome the shortfall in material management issue, the main objective of this study is to investigate the various influential factors of material management in construction of hydropower projects in Koshi Province, Nepal based on the selected hydropower projects under study. The study also identifies the status and challenges of the material management practices in the industry along with the possible solutions to mitigate challenges encountered in cost effective and efficient material management in Koshi Province for studied hydropower projects and similar project reckonable to the projects under study. The study adopts Structural Equation Modelling (SEM) using smart partial least square (PLS), which is a statistical methodology that takes conformity approach to the analysis of a structural theory bearing on some phenomenon. Similarly, Bloom's Cutoff, Principal Component Analysis (PCA) have been carried out for data analysis. Bloom's Cutoff is statistical tool to categorize the data into different levels and PCA is a dimensionality reduction technique to simplify large datasets by transforming them into a set of orthogonal variables. Key Informant Interviews (KII) was conducted for thematic analysis. The outcomes projected based on the detail study under the scope shows the importance of material management during construction in the chronological order of "Planning", "Management" and "Purchasing". Based on the questionnaire survey and checklist reveals vii the moderate level of practice in those hydropower projects under study in Koshi Province. The findings show the "Poor Operational and Financial Management" as the most significant challenges of overall material management. Implementing advanced project management software, engaging skilled manpower and establishing standardized procedure for inventory management and documentation are the remedial measures for the effective material management practices, ultimately aiming to enhance project productivity, reduce cost overruns, ensure minimum loss and wastage during transportation and storage, and ensure timely project completion.

Keywords

Material management, influential factors, hydropower project, Koshi Province, structural equation modelling, effective and efficient material management

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