Assignment No.

1
“Collect the Examples of few Major projects which were affected by the
Economic, Legal and Environmental Factors. Also give your brief comments
about these projects.”

By

Ch. Waseem Sajjad

SAP No. 11610

MSPM-Sec B

Faculty of Management Sciences

Riphah International University, Islamabad
 Collect the Examples of few Major projects which were affected by the Economic, Legal
and Environmental Factors. Also give your brief comments about these projects.

Infrastructure is the fundamental requirement in the functioning of any country. In today’s

modern era, we need electricity to power our homes and industry. We need roads to transport
goods from one place to the other and then ports and airports to export our industrial products
to foreign trade partners. Similarly, a modern nation requires effective water and sanitation to
improve and sustain the health and cleanliness of its people. In all situations, infrastructure is
such a necessity that it affects the lives of every single individual on this planet. Lack of proper
infrastructure causes chaos and havoc in our lives. It also causes bottlenecks in the smooth
functioning of the economy.

The improvement and expansion of infrastructure is a pre-requisite for sustaining and

accelerating economic growth and social development in a country. Improving quality and service
coverage in power, water supply and sewerage treatment, transport and logistics is crucial for
economy and to improve the quality of life.

Various researchers identified various reasons/factors for project failure. These factors may be
external or internal to the organization responsible for its management. Internal factors that
influence the project includes organizations management, project team, internal departments
etc. External factors include Legal issues, politics, environmental, sociological and economic
factors. Some examples of the project failure that were affected due to external factors i.e.
Economic, legal and environmental factors.

In new Islamabad metro project few changes were made at H11 sector police line station there
was no metro bus station. The location of the green belt land was between Peshawar morr to
Islamabad chowk. Initially the Pakistan Environment Agency denied for construction on the green
belt land, but a new report was commissioned and then on the Kashmir highway from Peshawar
morr to G12 sector was granted permission to constructed. The area from G12 sector to
Islamabad chowk was given permission to build on green belt land because the ground was not
suitable to lay a new track.

Moreover, the extension of the Metro-Bus project from Islamabad to New Islamabad
International Airport is facing delay due to lack of interest by the current government. The
25.6km long extension had initially been slated to be built by Aug 14, 2017 – to coincide with the
opening of the airport. Construction on the extension project, which started in 2017, is struggling
due to shortage of funds. “The most important reason (for the slow pace of construction) is lack
of funds. After the concerns shown by Pakistan Environment Agency the design were changed by
the project team. Moreover, for shortage of funds or maybe due to the interest towards the
project by current government, project face delayed again & again.

The Orange Line Metro Train project has been subject to criticism regarding
transparency, while environmental groups have been critical of the environmental sustainability
of the project. The Asian Development Bank is reported to have offered to finance a comparable
underground transit system at a lower cost of borrowing, but with longer construction times and
higher overall cost.
Various people and organizations have raised concerns that the Lahore Metro Orange Line might
be a possible threat to heritage sites in this historic city. On 19 August 2016, the Lahore High
Court ordered the cessation of construction works located within 200 feet of 11 historical
sites, though the injunction was eventually lifted and construction allowed to proceed.
The project is delayed due to the legal action against the line. After 22 months construction work
resumed after the judgment from Supreme Court of Pakistan going in favor of metro. After the
election, working on metro slow downed because minister of Government of Punjab termed it
as White elephant and showed reluctance to complete it. The 2019-2020 budget of Punjab has
allocated low amount of funds for the project which will slow the pace of development of metro.
Main reason for delayed in the project is due to multiple factors, mainly the political and
environmental reasons.
The Nandipur Power Project is a 425 MW (with potential of 525 MW) combined cycle thermal
power plant situated at Nandipur near Gujranwala in the Punjab province of Pakistan. Being
constructed by the China Dongfang Electric Corporation, the project was completed in March
2015. The initial cost of the project was Rs. 27 billion, but this escalated during the revised project
cycle-1 and totaled Rs. 58.42 bn at completion. The power plant faced a series of hiccups during
and after launching its commercial operations. Prior and after construction, the project
continued to attract a number of court cases, inquiries, investigations, audits, and political and
commercial disputes. The plant collapsed after 5 days of operation, launching a series of inquiries
ordered by then prime minister.
The energy produced by Nandipur was extremely expensive, at Rs. 42 per unit, and the project
was shut down after five days of operation. Besides ineffective cost, the plant ran at less than
42% efficiency, even less than decades-old power plants in the country such as Hub Power
Company plants set up in the 1990s, which produce energy at Rs. 7.65 per unit (kwh). After this
failure, the prime minister of Pakistan Nawaz Sharif ordered two separate audits.
The project is a very good initiate by the government but involvement of the persons contacts in
the project will caused issued.