1EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 2ReachEMCM5203 ASSIGNMENT 1JANUARY SEMESTER 2012

2INTERNATIONAL PROJECT MANAGEMENT (EMCM5203) 3 4 5 6 7 8 9 10 11 12ASSIGNMENT 13 14 15 16 17 18 19 20LECTURER 21Mr. Karthegesan Balasubramaniam 22 23 24 25 26 27 28 29 30 31 32STUDENT 33SYAHRIFENDI LUKMANILHAKIM 34MASTERS IN PROJECT MANAGEMENT

3Syahrifendi Lukmanilhakim Abd Shukor 4CGS00560517

5EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 6ReachEMCM5203 ASSIGNMENT 35 36 37

1. Executive Summary
The Dabhol power plant was a massive project implemented on the western coast of

38Maharashtra State. The project started in 1992 and 7 years later the power plant started its 39first supply of electricity. The government of India had invited foreign investors to explore 40the possibilities of building a large power plant in Maharashtra State as part of their plant to 41encourage foreign privatization project to boost the local market. The MoU was signed in 42June 1992 between the Maharashtra State Electricity Board (MSEB) and Dabhol Power 43Corporation (DPC) and the following year in December, the Power Purchase Agreement 44(PPA) was also signed. 45 The report is prepared to provide critical analysis between 3 elements of scopes that

46is PESTLE analysis, project risk management and the critical success factors for the 47Dabhol power project. All the elements are critically analyze from the perspective of 48project management. The analysis was started by briefly introduced why the report has 49been prepared and how the report is structured. A project background of the Dabhol power 50project is briefly stated in the report. The report then proceeds to investigate on whether 51DPC had carried out the PESTLE analysis from the beginning stage of the project and 52throughout the project life cycle. The analysis highlighted what when wrong and provides 53recommendations on how DPC should overcome the problems and when should it conduct 54the PESTLE analysis. On the second elements, risk management process was introduced in 55the report by depicting steps and process. The report shows if DPC had indentified all the 5 56risk processes during the project implementation and provides recommendations on how to 57overcome it throughout the project life cycle. Lastly the report explained on the critical

7Syahrifendi Lukmanilhakim Abd Shukor 8CGS00560517

9EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 10ReachEMCM5203 ASSIGNMENT 58success factors of the Dahbol power project and if DPC had achieved project success by 59identifying all the 7 critical success factors throughout the project life cycle. 60 61 62 63

11Syahrifendi Lukmanilhakim Abd Shukor 12CGS00560517

13EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 14ReachEMCM5203 ASSIGNMENT 64 65TABLE OF CONTENTS 66 671. Executive Summary...........................................................................................................1 682. INTRODUCTION..............................................................................................................1 693. PROJECT BACKGROUND.............................................................................................2 704. PROJECT ENVIRONMENT ANALYSIS......................................................................6 71 4.1 PESTLE ANALYSIS.....................................................................................................7 72 4.2 Political Factors..............................................................................................................7 73 4.3 Economical Factor..........................................................................................................9 74 4.4 Sociological Factors.......................................................................................................9 75 4.5 Technological Factors..................................................................................................10 76 4.6 Legal Factors................................................................................................................11 77 4.7 Environmental Factors.................................................................................................12 78 4.8 Conclusion....................................................................................................................13 79 4.9 Recommendations........................................................................................................15 805. PROJECT RISK MANAGEMENT...............................................................................16 81 5.1 Plan Risk Management Overview...............................................................................18 82 5.2 Risk Identification........................................................................................................18 83 5.3 Risk Analysis................................................................................................................20 84 5.4 Risk Response Planning...............................................................................................22 85 5.5 Conclusions..................................................................................................................23 86 5.6 Recommendations........................................................................................................23 876. CRITICAL SUCCESS FACTORS................................................................................24 88 6.1 Conclusion....................................................................................................................25 89 6.2 Recommendations........................................................................................................26 907. CONCLUSIONS...............................................................................................................26 918. RECOMMENDATIONS.................................................................................................28 928. BIBLIOGRAPHY............................................................................................................30 939. APPENDIX A...................................................................................................................31 94 MARK SHEET EMCM5203 ASSIGNMENT INTERNATIONAL PROJECT 95 MANAGEMENT...............................................................................................................31 96 97 98 99

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17EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 18ReachEMCM5203 ASSIGNMENT 100LIST OF FIGURES 101 102Figure 1 Map of Dhabol Power Plant..................................................................................2 103Figure 2 Dhabol Power Plant................................................................................................4 104Figure 3 The risk management processes and responsibilities for the project manager 105and stake holder (Caltrans, 2007).......................................................................................18 106 107 108 109 110

19Syahrifendi Lukmanilhakim Abd Shukor 20CGS00560517

21EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 22ReachEMCM5203 ASSIGNMENT 111LIST OF TABLES 112 113Table 1 The Chronology of Dabhol Power Project............................................................6 114Table 2 PESTLE Classification System...............................................................................7 115Table 3 Risk Breakdown Structure (Chapman, 2001).....................................................19 116Table 4 Risk Probability/ Impact Matrix..........................................................................20 117Table 5 Example of Risk Register......................................................................................23 118 119 120 121 122 123 124

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25EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 26ReachEMCM5203 ASSIGNMENT 125 126 127 128

2. INTRODUCTION
This report has been prepared to provide critical analysis on the Dabhol Power

129Project failure, success and recommendations. Dabhol Power Corporation (DPC) formed 130by Enron Corporation based in the United States is to facilitate the building of an electric 131power plant located on the coast of Maharashtra State of India. The objective of the project 132is to provide electricity to Maharashtra State even though statistically the average electric 133usage is much less compared to other developing countries. The electric power plant will 134be fueled by liquefied natural gas (LNG) brought in by ships in huge storage tanks to the 135coast of Maharashtra State. The project which started end of 1992 was supposed to be 136operational in December 1995 but delayed until 1999 when it can only complete the first 137phase after facing numerous obstacles which later divided the project into 2 phases. The 138Dabhol Power Project was facing numerous problems ranging from water supply and 139contamination, lands acquisitions, capital cost and rates, political pressure and several more 140that will be later discuss in the report. 141 The report is structured by providing critical analysis based on PESTLE (Political,

142Economic, Social and Technological), environmental analysis, risk analysis and critical 143success factors. The report will apply project management practices and standards to make 144the analysis and will be assisted with figures, tables and examples to further explain the 145information provided. 146 From this analysis, the report will produce a conclusion and suitable

147recommendations for the project based on the correct project management practices in 148achieving the objectives and targets.

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29EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 30ReachEMCM5203 ASSIGNMENT 149 150 151

3. PROJECT BACKGROUND
In 1992, India came to the United States to find energy. This focused on investors

152and corporations that can provide solutions to Indias energy shortage problem. India is the 153second most populous country in the world with a population of 1.2 billion people, and 154with this huge number of people requires a huge amount of electricity for day to day usage. 155Statistically an average of 400 million Indians does not have access to electricity amenities. 156 Enron Corporation which initiated a project called Dabhol Power Project after

157signing an agreement with Indias Maharashtra State government. The objective of this 158project is to build an electric power plant and liquefied natural gas storage (LNG) storage 159facility in the state of Maharashtra on the northwestern side of Indian peninsula. Enron later 160formed Dabhol Power Corporation which 80% of the shares are owned by them while 161General Electrics and Bechtel owned the remaining 10% each. 162 The power plants are fueled by liquefied natural gas which is transported by ships

163since the plants are located on the coast of Maharashtra State via the Arabian Sea.

164 166 167

165

Figure 1 Map of Dhabol Power Plant

The project power plants are expected to be fully operational by year end of 1995

168after it was started 3 years back and able to generate 2550 megawatt of electricity with a 31Syahrifendi Lukmanilhakim Abd Shukor 32CGS00560517 2

33EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 34ReachEMCM5203 ASSIGNMENT 169cost of $3.1 billion but the project was later scaled down and separated into two phases at a 170slightly lower cost of $2.9 billion. 171 Many problems arise since the beginning of the Dabhol power project initiation.

172From the environmental point of view, the project would cause dangerous consequences 173and displace many people in the area. The effect on fresh water supplies for drinking and 174crops cultivation is one of the many problems highlighted by the local people. People living 175in the surrounding area will lose their homes since the land acquisition was done single 176sided and not transparently. The price of electricity from the Dabhol power project raised 177serious concerns to the Central Electricity Board (CEA) due to non-competitive and 178expensive rates, but eventually the CEA approved the project after numerous pressures 179from Enron Corporation and the United States. The Maharashtra State Electricity Board 180(MSEB) also commits itself in purchasing a fixed amount of electricity monthly from the 181plant and the payments will be in US Dollars currency. Since MSEB is the only customer 182for Dhabol Power Corporation, this means even though the currency rate fluctuated, the 183project would always generate a fixed minimum amount of money. Any risks associated 184with currency fluctuations and demands, Dhabol Power Corporation have securely safe 185guard itself by implementing this regulation. The critical success factors for the Dhabol 186power project are only half achieved. The project objectives was to built an electric power 187plant in two phases but Dabhol Power Corporation only manage to complete the first phase 188in 1999 while the other phase was numerously halted due to problems. Enrons $1 billion 189investment in the Dhabol Power Project will be lost since phase 2 will not be continue and 190the profits from phase 1 was never seen since Maharashtra State Electricity Board failed to 191deliver their payments on time. If Dhabol Power Corporation practices a proper project

35Syahrifendi Lukmanilhakim Abd Shukor 36CGS00560517

37EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 38ReachEMCM5203 ASSIGNMENT 192management skills and standards most of the problems may not happen or worst case 193scenario the project will not started initially. 194 195

196 198 199

197

Figure 2 Dhabol Power Plant

200 201

Date 1991-1992 Feb. 1992 May 1992

Description India opens its power sector to private foreign investors. Enron begins investigating opportunities in the Indian power sector.

Enron executives pitch their ideas to the Indian power secretary, who is in the United States to encourage foreign participation in the Indian power sector. June 1992 Enron, Bechtel and General Electric signed a memorandum of understanding with the Maharashtra State Electricity Board (MSEB) to build the Dabhol project. The operating entity is the Dabhol Power Company, a joint venture. Enron is the June 1992- majority owner whilethe termsElectric and Enron obtainsown necessary approvals The parties negotiate General of the deal. Bechtel each the 10% shares. Dec. 1993 for the project from the Indian government. Dec. 1993 Dabhol Power Company and MSEB sign the power purchase agreement. Govt. of Maharashtra signs guarantee Govt. of India signs guarantee. Split into two phases 39Syahrifendi Lukmanilhakim Abd Shukor 40CGS00560517 4

41EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 42ReachEMCM5203 ASSIGNMENT 1994early 1995 Indian political parties opposing the ruling Congress party campaign on an anti-Enron platform. Enron seeks and obtains $635 million in financing, insurance, and loan guarantees from Bank of America, ABN Amro, a group of Indian banks, the U.S. Export-Import Bank, and the visits India, accompanied by Ken Lay, and(OPIC). Jan. 1995 Commerce Secretary Brown Overseas Private Investment Corporation oversees signing of loan agreements by the Dabhol Power Company with the U.S. Export-Import Spring 1995 Rulling party Sharad pawar defeat and the the opposition alliance Bharatiya Janata PartyShiv sena wins the election in Maharashtra in March, and in May the new government Committee committee of state ministers (the Munde Committee) to Aug. 1995 The Munde appoints a issues a sharply critical report that recommends scrapping the Dabhol project. The state government acts on this advice. Aug.-Dec. Enron enters arbitration and seeks $300 million in compensation. The state 1995 government files suit in September to void the agreement, alleging fraud and misrepresentation. U.S. officials, including Energy Secretary Hazel OLeary, warn India that its the Nov. 1995 Rebecca Mark, Chairman of Enron International, meets with Bal Thackeray, Jan. 1996 Feb. 1996 1996-1997 1997 May 1999 2000 Jan. 2001 April 2001 April 2001 May-June 2001 May 2001 June 2001 July 2001 top power in one of the ruling parties. Afterwards, negotiations resume between Enron and the The state announces it will accept a revised agreement. The state and the Dabhol Power Company finalize the terms of the revised agreement. Legal challenges to the project by Indian groups continue, but are eventually dismissed. Enron obtains approval from the Indian government to expand the Dabhol liquified natural gas terminal to allow it to process 5 million metric tons annually. Dabhol Phase I (740 megawatts) begins generating power & Phase 2 financing of $1.87 billion secured Rebecca Mark leaves Enron. Maharashtra Govt. official announces contract should be renegotiated due to high power cost The state of Maharashtra stops paying for Dabhol as of its $22 million bill December 2000. The state subsequently seeks to cancel the power purchase agreement. Enron begins arbitration proceedings. Secretary of State Colin Powell raises Enrons problems regarding Dabhol in a discussion with Indias foreign minister. The Dabhol Power Company ceases operation of the Phase I portion of the plant and halts construction on the 90% completed Phase II portion (1,444 megawatts). The Bush Administration releases the White House Energy Plan, which contains a provision that benefits Enrons India operations. Vice President Cheney raises Dabhol in a meeting with Sonia Gandhi, the president of Indias The National Security Council leads a Dabhol working group with Administration officials, 5

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45EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 46ReachEMCM5203 ASSIGNMENT July 2001 Oct. 2001 Nov. 2001 Christina B. Rocca, Assistant Secretary of State, meets with Indian officials on Dabhol. Alan Larson, Undersecretary of State for Economic, Business and Agricultural Affairs, raises Dabhol with the Indian foreign minister and the Indian national security advisor. Talking points are prepared for President Bush to discuss Dabhol in a meeting with Indian Prime Minister Vajpayee on November 9. However, the topic is vetoed the day before the meeting on November 8, which is the same day that Enron discloses a stunning $586 million in previously unreported losses. Table 1 The Chronology of Dabhol Power Project

202 203

204 205 206 207

4. PROJECT ENVIRONMENT ANALYSIS

The aim of a project management is to manage the uncertainty of internal and

208external factors that influences the projects conception, design, operation and ultimately its 209success. The Dabhol Power Project is a large project that has many external factors to 210consider and analyze which can be difficult given its vastness and complexity. Failure to 211consider these factors can lead to project overrun of time and budget, it may even lead to 212complete project failure. There are many type of analysis can be apply to identify the 213external factors such as PESTLE, SWOT, Porters Model and many more but for this 214report PESTLE analysis will be used. PESTLE (Political, Economic, Social, Technological, 215Legal and Environmental) Analysis is used for scanning the present and future external 216environment when engaging in strategic planning or change management. These tools 217identify the external factors that impact on the various aspects of an organization (Turner, 2182007). 219
220

CATEGORY OF RISK Political Economic

DESCRIPTION Tax policy, employment laws, environmental regulations, trade restrictions and reform, tariffs and political stability Economic growth/decline, interest rates, exchange rates and inflation rate, wage rates, min wage, working hours, unemployment, credit availability, cost of living 6

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49EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 50ReachEMCM5203 ASSIGNMENT Sociological Technological Legal Envionmental
221

Cultural norms and expectations, health consciousness, population growth rate, age distribution, career attitudes, emphasis on safety, global warming. Technology changes that impact your products or services, new technologies, barriers to entry in given markets, financial decisions like outsourcing and supply chain. Changes to legislation may impact employment, access to materials, quotas, resources , imports/exports, taxation Ecological and environmental aspects, although many of these factors will be economic or social in nature.
Table 2 PESTLE Classification System

222Adapted from (Hopkin, 2010) 223 2244.1 PESTLE ANALYSIS 225 226 In this report, each environment component gathered from the Dabhol Power 227Project will be discussed using PESTEL analysis. The importance of conducting PESTLE 228analysis before starting of any project is to avoid any unconscious assumptions before or 229during the project implementation. It also helps the project manager to effectively adapt to 230the realities of a new project environment. 2314.2 Political Factors 232 233 The P in PESTLE stands for political factors, both current and future. These ranges 234from global through to national, regional and local. The more public and controversial the 235project , the more likely it is to be influenced by political factors. In this case, the Dabhol 236power project is the correct example of political influenced project. From the very 237beginning, it was widely recognized that India does not really need a project of this big 238scale. After DPC signed an agreement with MSEB with the guarantee from both 239Maharashtra State and India Government, these results in major foreign investors to invest 240in India. It was estimated that many of Indias industries could operate at only half of their 241capacity because of a lack of electric power and analysts are projecting that India urgently 51Syahrifendi Lukmanilhakim Abd Shukor 52CGS00560517 7

53EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 54ReachEMCM5203 ASSIGNMENT 242needed to double its capacity to maintain a consistent economic growth (Vanderbilt, 2001). 243During the 1995 Maharashtra state election, the ruling party Sharad Pawar lost to the 244opposition party Bharatiya Janata Party-Shiv. The opposition party success was mostly 245contributed by exploiting unease issue on Enron. When they came into power, the Enron 246deal was cancelled even though constructions have been started. Enrons decision to 247continue with the project work was legally valid, and had in essence nothing to do with the 248politics. However, the critical factor was that Enron had to give due consideration to its 249primary customer, the state government. They had to negotiate the PPA with its customer 250and also maintain relations and build its image for its future deals in the country. In 251October 2001 Enron offered to sell its equity in the project to the government for $1 billion 252on a no-profit, no-loss basis. However, the Indian government refused to allow any state253owned company to buy a stake in Dabhol. Furthermore, MSEB that had defaulted the 254payments claimed that it could not afford the prices negotiated in the contract. The original 255deal included a government guarantee to cover any payment shortfall, but they were never 256met. 257 From the highlighted problems related to the political factors, these can be avoided

258by including the government in the deal in order to gain access to the Indian market. From 259this venture, it will keep any potential threat close. When the government has a stake in the 260venture, it will do anything in their power to keep the project afloat since MSEB bought 261some shares from Enron 80% stake. The important question to Enron is, was they fully 262aware of Indias financial credibility in the international market and have they considered 263alternatives source of financing?. Possibilities for Enron in avoiding the political risks in 264the first place are involving the World Bank, the InterAmerican Development Bank or

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57EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 58ReachEMCM5203 ASSIGNMENT 265some other multilateral financing agency in the project more strongly by borrowing from 266them, through thorough gauging of the environment and political situation and adapting to 267the circumstances 2684.3 Economical Factor 269 Since the Maharashtra State Electricity Board (MSEB) is the sole purchaser or only 270customer for DPC, a power purchase agreement (PPA) was signed. The first PPA 271agreement was signed on December 1993 between DPC and MSEB. When the state 272government changed in 1995, the PPA was renegotiated to duration of 20 years. The 273purpose of the PPA is to legally bind MSEB in buying 90% of the power produced by DPC 274through the Dabhol Power Project. The electricity power tariff rate was high (Rs 2.40/ 275unit, in 2001 the power rate produced from the Dabhol Power Project was four time more 276expensive compared to the domestic rates. MSEB need to pay DPC expensive electricity 277power bill in US dollars exchange rate therefore in January 2001 MSEB was unable to 278provide payments amounting USD61 million. During the time, the Dahbol Power Project 279was producing more electricity power than MSEB could possibly need. Dhabol Power 280Corporation (DPC) should have negotiated the PPA to enable it to sell all excess electricity 281to other customers. Enron should have demanded to include their representative inside 282MSEB operatives management who has knowledge in the operational business. The 283representative can provide regular status reports on the financial status of the customer also 284using this method, Enron will know its customers abilities to pay their bills. 2854.4 Sociological Factors 286 287 During the construction of the electric power plant, many lands need to be taken

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61EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 62ReachEMCM5203 ASSIGNMENT 288to make way for the project. Local people affected by the project expressed concerns and 289disappointment on the land acquisition process. It was controversial since the land owner 290was not notified it had been seized and adequate compensation was not given. It was 291reported that an estimated of 2000 people loses their homes and land because of the project. 292Fresh water supplies are crucial to any residential and farming area. The project causes 293sufficient fresh water was not available impacting the nearby village to have access to 294drinking water only 1 hour per day. In retaliation to these problems, NGOs intervene by 295organizing protest and demonstrations. In 1999, the Human Rights Watch (HRM) reported 296the project was in violations of human rights. These pressures from activist and NGOs 297contributed to the project bad publicity and delayed its completion. 298 DPC should address these problems accordingly by following the proper process

299when acquiring lands from the local people. Negotiations between the local people and 300DPC should have been initiated to discuss the adequate compensations and how to mitigate 301the fresh water problems. 3024.5 Technological Factors 303 304 From the technical factor point of view, the Dabhol power project does not really 305considered serious since one of the equity investors is Bechtel. Bechtel has a history and 306experience when dealing with power and LNG projects. The project did not suffer any 307major technological difficulties during constructions and initial operations. In 2001, MSEB 308requested DPC to supply its base load capacity on 28.1, 13.2 and 29.3. DPC failed to 309deliver the required power capacity and was accused of defaulting the power purchase 310agreements. DPC admitted that it was not able to ramp-up from full stop or idle to base 311load after the request was put in by MSEB and DPC finally only manage to ramp-up to 63Syahrifendi Lukmanilhakim Abd Shukor 64CGS00560517 10

65EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 66ReachEMCM5203 ASSIGNMENT 312base load capacity three hours later . Therefore MSEB stated the penalty of Rs 4 billion is 313sufficient to pay off its overdue bills. 314 Technological risk could have been dealt if the power capacity is permitted to for

315other customers to buy. This will solve the problem by not letting the plant to be on idle or 316full stop and able to ramp up to base load capacity whenever is needed. 3174.6 Legal Factors 318 In the early phase of the project, the contract was dubious since it is single sided. If 319favors more towards DPC as sees by the public who opposes the project, opposition parties 320and the World Bank. DPC was accused of corruption in setting up the project and how it 321securely acquires official clearance for the project. Large projects like this should be 322following proper process such as tender awards instead of having secret negotiations. The 323Memorandum of Understanding, signed on 20th June 1992 for a plant with a minimum 324capacity of 2000 MW, includes several conflicts with the Indian law. These conflicts 325impose legal risks on the power project that could have been avoided by taking the local 326law properly into account. According to MoU, Enron has to be paid the same amount 327regardless of the Maharashtra State Electricity Boards consumption of energy i.e. MSEB 328had to pay for energy produced by 90% capacity of the power plant even though its 329consumption would correspond a minor capacity. On the other hand, the Indian law states 330that a power company can enter into a contract only to sell the electricity that it actually 331generates and not its generating capacity. In addition, the Indian law states that the price 332that the public pays for electricity must follow least-cost approach. The Indian Electricity 333Act mandated the Central Electricity Authority (CEA) to conduct a critical examination 334and give its approval of the technical and economic aspects of all power plants in August

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69EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 70ReachEMCM5203 ASSIGNMENT 3351993. The CEA study showed reasonable capital costs for the Enron plant to be Rs 19.1 336million per MW. Enrons estimate was Rs. 44.9 million per MW. Also according to the 337World Banks statement, the project is not part of the least cost sequence for Maharashtra 338power development. Using local coal and gas resources would be a more economical 339option for Maharashtra power generation. 3404.7 Environmental Factors 341 Concern over environmental impact fostered strong opposition to the project, 342mainly from the part of residents and fishermen in and around the plant area. The three 343primary areas of concern were: 344 345 346 347 348 349 Pollution of fresh water Diversion of fresh water to the project site Potential contamination of salt water, which would adversely affect fishing communities Land acquisition for the project

The problem of water diversion became severe in 1996-1997. Namely, local water

350supplies were diverted to the project (8,338 litres per minute) at the expense of the 351villagers. The company only agreed to supply the amount of water that wells and tankers 352could bring to affected villages. Thus, Enrons programs only provided 40,000 litres of 353water per day, as opposed to 300,000 litres of water available to the villagers before the 354project. The other water-based issue of concern, particularly to fishing villages, was the 355effect of hot-water discharge into bodies of water where fishing took place. In particular, 356the water was first used to cool the Dabhol Power plant and once the water was circulated 357through the plant, it was discharged back to the sea at a higher temperature. The water, 71Syahrifendi Lukmanilhakim Abd Shukor 72CGS00560517 12

73EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 74ReachEMCM5203 ASSIGNMENT 358which also contained toxic effluents, was expected to raise the temperature of the water and 359cause pollution which would kill fish and prawns, thereby destroying fisher peoples means 360of subsistence (about 2,000 families of fisher folk were living off fishing done near the 361seashore). These concerns were raised in 1993, when individuals sent letters of objection to 362the company during the two-month notification period. In particular, DPC complied with 363the law in posting a notice in a local newspaper stating it was constructing power and 364would be acquiring land for the purpose of advising any person with an objection to notify 365DPC within two months of the publication of the notice. However, DPC falsely wrote to 366the government stating that they had received no objections. The Maharashtra state should 367have raise concerns to DPC when no one had object about the project and land acquisition 368since this involves the local people who particularly will be paying the electricity should 369the project completed. 3704.8 Conclusion 371 As one of Indias first and largest foreign investment projects, the Dahbol power 372project was anticipated as a major step in improving the countrys ailing power sector in 373the early 1990s. Unfortunately the project has been clouded by crisis and problems 374resulted in multibillion dollar losses to investors and project sponsor. From the PESTLE 375analysis, it is seen that Enron Corporation believes their way of doing business in a foreign 376country is the right and only way or to say more superior compared to the local way. GOI 377and MSEB should have been included in the dealing process from the very beginning to 378close any potential threat. Through this venture, both central and state governments will do 379anything to protect the project when their stakes is at risk. Enron also must be fully aware 380of Indias financial credibility and must seek out other alternatives financial sources to

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77EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 78ReachEMCM5203 ASSIGNMENT 381better provide financial stability to the project. From the economic factors perspective, the 382electricity power tariff is too high resulting default payment from MSEB and in addition 383the Dabhol Power Project was producing more power than it really needs. The solution is 384for DPC to re-negotiate the PPA terms to enable the excessive electricity power to be sold 385to other customers rather than focusing on only one. Enron also should have included its 386representative inside MSEBs operative management to provide project status and financial 387report. This will provide information to Enron on its customers financial capabilities in 388paying their electricity bills. The Dabhol power project had causes local land owners 389treated unfairly due to inadequate compensation and poor notification process. The project 390also causes inadequate supply of fresh water to the local villages and farming area. These 391problems can be solve by DPC following the correct land acquisition process according to 392the local law. Discussions between local people and DPC must be held regularly to 393negotiate on the compensation payments and how to mitigate the fresh water supplies. In 3942001, MSEB requested DPC to ramp-up the power plant to base load capacity but the plant 395only manage to do so after three hours. MSEB claimed that DPC had voided their initial 396agreement and requested the imposed penalty payment to cover MSEB overdue electric 397power bills. This problem should not have happen if DPC would have permitted other 398companies to purchase their electric power and the plant will be continuously generating 399power without the need to stop or idle. From the legal point of view, the contract between 400DPC and MSEB was single sided from the very beginning. Large projects such as this 401should have a tender award process instead of conducting secret negotiation between 402involved parties. Enron requires MSEB to purchase 90% from the produced electricity even 403though the actual power consumption was lesser. The Maharashtra State should have not

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81EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 82ReachEMCM5203 ASSIGNMENT 404ignored the World Bank statement on using local coal and gas resources for power 405generation which is more economical. Lastly, the Dabhol power project causes pollution to 406the fresh and salt water environment. Water used to cool the plant is diverted back into the 407sea causing the temperature to rise and killing the wildlife. Fishermans depended on the 408sea to provide food and money for their families. DPC did complied to the law by 409advertising in the local newspaper about their power plant project and land acquisitions, if 410theres any complaints do inform them but DPC falsely wrote to the government there was 411no objections. The Maharashtra State should have raised their concerns to DPC why such a 412huge projects and no one is opposing it. If the project was to be proceed and finally 413completed, the local people will be the one buying the electricity from MSEB. 4144.9 Recommendations 415 Enron Corporation should have considered performing PESTLE analysis before 416decided to invest in this large project. The analysis still can be performed even after the 417MoU was signed between Enron, GOI and MSEB. Once the PESTLE analysis is 418completed, Enron Corporation can identify all the unconscious assumptions when operating 419in a new country and to decide whether to proceed or not with the project. The analysis is a 420useful tool for understanding the big picture of the environment in which the 421organization will be operating. 422 423 424 425 426 427 428 429 430 431 83Syahrifendi Lukmanilhakim Abd Shukor 84CGS00560517 15

85EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 86ReachEMCM5203 ASSIGNMENT 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464

5. PROJECT RISK MANAGEMENT

Risk is an important area for the successful management of projects. With multiple

465objectives and external pressures, organizations need enhanced project management tools 466and disciplined project managers to ensure the successful completion of their projects. Risk 467is a measure of the probability and consequence of not achieving a defined project goal 468(Kerzner, 2009). The definition of risk management is the act or practice of dealing with 469risk. It includes planning for risk, identifying risks, analyzing risks, developing risk

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89EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 90ReachEMCM5203 ASSIGNMENT 470response strategies, and monitoring and controlling risks to determine how they have 471changed (Kerzner, 2009). Below are the steps for risk management: 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 1. Plan for Risk Management - is the detailed formulation of a program of action for the management of risk (Kerzner, 2009). Risk management planning is the process of deciding how to approach and conduct the risk management activities for a project (Institute, 2004). 2. Risk Identification - is an iterative process that determines which risks might affect the project and documents their statistics (Institute, 2004). There are many tools and techniques for risk identification such as brainstorming, Delphi technique, interviewing, SWOT analysis and others. 3. Risk Analysis - is a systematic process to estimate the level of risk for identified and approved risks (Kerzner, 2009). There are two processes which is qualitative and quantitative. 4. Risk Response Planning - The key point to response planning is to outline corrective action and to incorporate those actions in the baseline schedule so that they will not later be considered add-ons or changes to the project (Barkley, 2004). For risk response options it includes acceptance, avoidance, mitigation (control), and transfer while for opportunities this includes acceptance, enhance, exploit and share. 5. Risk Monitoring and Control - The monitoring and control process systematically tracks and evaluates the effectiveness of risk response actions against established metrics (Kerzner, 2009).

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93EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 94ReachEMCM5203 ASSIGNMENT 4925.1 Plan Risk Management Overview 493 Dabhol Power Corporation should have conducted a plan risk management by first 494defining roles and responsibilities. This is done through identifying all the responsible stake 495holders to each of the project risk management process. Figure shows the responsibilities 496for each stakeholder according to the 6 process of risk management.

497
498Figure 3 The risk management processes and responsibilities for the project manager and stake holder 499(Caltrans, 2007)

5005.2 Risk Identification 501 All the risks must be identified and categorized under its sources. The identified 502risks will put into a Risk breakdown Structure (RBS) to avoid any risk to be left out.
503

LEVEL 0 LEVEL 1 Environment

LEVEL 2

LEVEL 3 Planning approval delay Legislation changes Ecological constraints etc Increase in competition Change in demand

Statutory

Industry

Market Cost/availability of raw materials 18

95Syahrifendi Lukmanilhakim Abd Shukor 96CGS00560517

97EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 98ReachEMCM5203 ASSIGNMENT etc Client representative fails to perform duties No single point of contact Client team Client team responsibilities ill -defined etc Inadequate project management controls Incorrect balance of resources & expertise PM team PM team responsibilities ill-defined etc Project objectives ill-defined Project objectives changed mid-design Client Project risk Late requirement for cost savings Inadequate project funding Funding Funds availability does not meet cashflow forecasts etc Brief changes not confirmed in writing Change control procedure not accepted Tactics Unable to comply with design sign-off dates etc Poor team communication Changes in core team Team Inadequate number of staff etc Cost control Project Time control Tactics Quality control Change control Site Design Targets Conflict between primary & secondary objectives etc

Task
504

Table 3 Risk Breakdown Structure (Chapman, 2001)

505

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101EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 102ReachEMCM5203 ASSIGNMENT 506 All the risk shall be labeled and be ranked based their weightiness e.g. whether they

507are threats, opportunities, triggers, residual risk, secondary risk or risk interaction. All the 508risk must be identified using qualitative and quantitative analysis to identify the level of 509risk i.e low, medium, high. This is to know the probability, impact and to see how likely 510the plan project can be met. For the Dabhol Power Project, quantitative analysis can be 511done on the project schedule, cost estimation and other risks. Table shows the 512probability/impact that has been tabulated after performing quantitative analysis. 5135.3 Risk Analysis

514 516 517

515

Table 4 Risk Probability/ Impact Matrix

The table above shows the risk probability/impact matrix for Dabhol power plant

518project after that have been identified and updated throughout the project life cycle. For 519Risk response planning and Risk monitoring and control, a risk register must be provided to 520list down all the identified risk for easy monitoring by the project manager and risk owner. 521Monitoring all the potential risk register shall be an advantage to the project team to plan 522ahead and not putting the project in a risk state. Table 5 (Rockart, 1979)shows the risk 523register that can be revisited periodically to monitor and control the project risk since the 524impact of some risk may change unexpectedly. 525 526 527 528 103Syahrifendi Lukmanilhakim Abd Shukor 104CGS00560517 20

105EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 106ReachEMCM5203 ASSIGNMENT 529

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109EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global ReachEMCM5203 ASSIGNMENT

5305.4 Risk Response Planning ID Risk Risk/ Risk Rating Opportu Category nity R18 1 R Environ/ Politic R12 2 R1 3 R R Environ/ Social/ Environ/ Economic Clean water Date Found Risk Root Cause Primary Probabilit Impact Risk Description Objective y (I) Owner (P) Cancellatio Change of Economic PM1 n of project Governmen / Time t Stoppage Poor Rebuilt PM1 due to treatment toReputatio protest the local n Insufficient World Economic PM1 funding Bank refuse/ to give funding Affect the Insufficient Const./ PM2 project water in Basic req. Maharashtr a could not Less power Spec. PM2 ramp-up to required by base load inMESB 3hr fr idle Stoppage Improper Const./ PM3 land Time acquisitions Risk Risk Strategy Responses Owner Trigger Action contact Accept Negotiation with new government Accept Negotiation with relevant parties Accept Look for alternative Funding Accept Built dedicated pipeline Status/ Date Review Active Active Active

R4

Active

R23 5

Design/ Requireme nt R/W

R35 4

Accept Propose to sell Active electricity to others therefore turbine will not Accept Acquire lands Active through proper channel

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112EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 113ReachEMCM5203 ASSIGNMENT 531 5325.5 Conclusions 533 534 From the research done in preparing this report, DPC has not conducted a proper 535risk management process as it should be throughout the project life cycle. Since the start of 536the Dabhol power project, DPC has been going through many problems and obstacles 537which all this project negative probability and impact can be avoided if they carried out all 538the 5 process of risk management diligently. 5395.6 Recommendations 540 It is recommended for DPC to perform risk management process periodically 541throughput the project life cycle. If the project team is unable to carry out risk analysis, 542DPC must hire a risk management consultant to assist them. DPC also can send their key 543persons to attend a risk management course in order to better equip the project management 544team. 545 546 547 548 549 550 551 552 553 554 114Syahrifendi Lukmanilhakim Abd Shukor 115CGS00560517 23
Table 5 Example of Risk Register

116EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 117ReachEMCM5203 ASSIGNMENT 555 556 557

6. CRITICAL SUCCESS FACTORS

Critical success factors are those features of projects which have been identified as

558necessary to be achieved in order to create excellent results: if the critical success factors 559are not present or taken into consideration, one can largely expect that problems will be 560experienced which act as barriers to overall successful outcomes (Rockart, 1979). (Bennet 561P. Lientz, 2003)There is a difference between project success and project management 562success. The definition of project success is the objectives of the project are met or 563achieved. Whereas the definition of project management success is considered when the 564project is delivered on time, within the budget, according to the scope of work and 565sometimes managed the stakeholders well i.e. customer. For example, in 1962 the merger 566between British Overseas Airways Corporation (BOAC) and Air France to build a 567supersonic transport called Concorde. The Concorde project was considered a success 568although it was over budget and over schedule. 569 In the case of Dabhol power project, DPC had not identified all the critical success

570factors in order to build a power plant in a foreign country such as India. Enron 571Corporation did have past experience developing other projects but it was not properly 572documented and archived. All the history data is relevant and useful to provide solutions 573when undergoing a new project which have similar requirements and problems. 574 For this type of huge project, the project management team should consider all the 7

575critical success factors for international project (Bennet P. Lientz, 2003). 576 577 578 1. Everyone must win with the project Relates to self-interest to show at start and reinforce as you go that people have a stake in the success and outcome of the project. 24

118Syahrifendi Lukmanilhakim Abd Shukor 119CGS00560517

120EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 121ReachEMCM5203 ASSIGNMENT 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 5956.1 Conclusion 596 It can be conclude that the Dabhol power project was not a successful project. From 597the perspective of project management success, Enron Corporation and DPC were not 598applying a formal project management framework causing the power plant to be 599unsuccessful. DPC also had not identified all the important critical success factors 600throughout the project life cycle causing problems and obstacles from start till the project 601ends. 2. Collaborative effort To have a widespread involvement and participation in the project. Involvement leads to commitment and dedication, a key factor for success. 3. Measurement, measurement and more measurement Should measure the situation before the project, as it goes on and the results. 4. Gather lessons learned as you go For international project, lesson learned are gathered as you work from start till the project ends. 5. Cultural sensitivity and awareness throughout the project To have a great deal of sensitivity toward culture in order to pick up on new factors and take them into account. 6. Proactive resource allocation To be successful, one must have a proactive approach to allocate human resources so that work on the project goes on. 7. Project organization and manager and team member selection How to structure the project and selection of people is important in all projects. Structure includes how to divide up the project and how to deal with issues.

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124EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 125ReachEMCM5203 ASSIGNMENT 6026.2 Recommendations 603 Enron Corporation and its locally created subsidiary Dabhol Power Corporation 604should have identified all the critical success factors prior to project initiation. These 605factors can be taken from their history data based on past project experience provided they 606had properly documented all the relevant important documents. 607 608 609 610 611 612 613 614 615 616 617 618 619 620 621

622 623

7. CONCLUSIONS

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128EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 129ReachEMCM5203 ASSIGNMENT 624 International project such as the Dabhol power project are complex in many aspects.

625To project manage an international project, a project manager must consider many factors 626such as different culture, time zones, currencies and a varieties of regulations and rules. 627 From this report, there are 3 components must be considered by the project

628management team before venturing or investing into the project that is PESTLE analysis, 629Risk management and Critical success factors. 630 PESTLE analysis has been carried out by Enron but it was not done properly and

631taken into account all the necessary findings. The outcome from the analysis is to 632understand the unconscious assumptions when operating in a new country and understand 633the new business environment. From the risk management perspective, DPC has not 634conduct a proper risk management framework throughout the project life cycle. All the five 635risk management process from risk management planning, identification, analysis, response 636planning and monitoring and control on the project are not being carried properly and 637periodically therefore it is not able to increase the probability and impact of positive events 638and to decrease the probability and impact of negative events in the project. In addition the 639project team are lacking with the forecast knowledge of the project. DPC have not also 640identified all the critical success factors since the beginning of the project until end. In an 641international project management, there are 7 critical success factors that need to be 642considered throughout the project life cycle. Enron Corporation and DPC did not learn 643from their past experience but rather jump into project without considering the advantages 644and disadvantages first. Enron Corporation was using pressure and bullying among its 645stakeholders that created uneasiness situation and dissatisfaction. Many things were not 646following the proper process according to the laws and regulation that triggers critics and

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132EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 133ReachEMCM5203 ASSIGNMENT 647complaints from local people and international bodies. Finally it can be stated that, Enron 648Corporation and DPC did not applied the required project management skills in 649implementing the Dabhol power project.

650 651 652

8. RECOMMENDATIONS
The report shall provide recommendations and solutions from the critical analysis

653and investigations done from the 3 components considered which are PESTLE analysis, 654risk management and critical success factors. These shortcomings should be carried out 655from the beginning stages and throughout the project life cycle. Below are some 656recommendations that can be considered: 657 658 659 660 661 662 663 664 665 666 667 668 1. PESTLE analysis must be carried out prior to the project initiation and all the necessary findings must be taken into account. It can also be carried out even after the MoU has been signed between relevant parties. 2. Enron Coporation should have a partner or a joint venture with the local companies in India. This will help them in getting corporations from the local people and better understand the business environment. 3. Enron Corporation only builds a relationship between the high level people but not among the mid and low level personnel. Most of the ground work is done by this people who are the backbone of the project. 4. Identification of project stake holder responsibilities for each of the risk management process in order to categorize and understand the area of concern.

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136EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 137ReachEMCM5203 ASSIGNMENT 669 670 671 672 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 5. Risk management must be carried out and managed according to PMI standards or PMBOK throughout the project life cycle. Proactive and preventive measures needs to be taken based on the risk analysis conducted. 6. Critical success factors such as lesson learned, measurement and cultural sensitivity should be identified and monitored throughout the project life cycle. 7. Enron should have proper documentation and archives on past experience projects for lessons learned on new projects ventures. 8. DPC can provide a representative to be place inside MSEB operational management committee to provide inside knowledge on their financial credibility and status reports. If DPC is unable to perform a proper risk management analysis, they must hire a professional risk management consultant who can provide assistance. 9. DPC should consider encouraging their key persons on the project management team to attend risk management courses by sending them for trainings for certifications. 10. It is recommended that DPC should setup a Project Management Office (PMO) to better manage the project. 11. A configuration management system should be incorporated into the change control system and a formal change control system should be in place. A change control board should be convened for every project.

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140EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global 141ReachEMCM5203 ASSIGNMENT 692 8. BIBLIOGRAPHY 693 694(2001). Vanderbilt Journal of Transitional Law , 907. 695 696Barkley, B. T. (2004). Project Risk Management. McGraw-Hill Books. 697 698Bechtel Briefs. (n.d.). Retrieved February 2012, from Bechtel Briefs: 699http://www.bechtel.com/assets/files/PDF/brief1298.pdf 700 701Bennet P. Lientz, K. P. (2003). International Project Management. Academic Press. 702 703British Airways PLC - Company Profile, Information, Business Description, History, 704Background Information on British Airways PLC. (n.d.). Retrieved February 2012, from 705Reference for Business: http://www.referenceforbusiness.com/history2/2/British-Airways706PLC.html 707 708Caltrans. (2007). Project Risk Management Handbook; Threats and Opportunities (2nd ed 709Rev 0). Office of Statewide Project Management Improvement (OSPMI). 710 711Cheah, C. Y. (2005). Real option evaluation of complex infrastructure projects: The case of 712Dabhol Power. Journal of Financial Management of Property and Construction , Vol. 10 713Iss: 1, pp.55 - 68. 714 715Hopkin, P. (2010). Fundamentals of Risk Management. 716 717Institute, P. M. (2004). A guide to the project management body of knowledge (PMBOK. 718Newtown Square, Pa.: Project Management Institute, Inc. 719 720Kerzner, H. (2009). Project management: a systems approach to planning, scheduling, and 721controlling (10th ed). Hoboken, N.J.: John Wiley & Sons. 722 723Rockart. (1979). Exploring Project Success. 724 725Samuel C. Certo, S. T. (2009). Modern Management: Concept and Skills (11th ed). Pearson 726Prentice Hall. 727 728Turner, J. R. (2007). Handbook of Project Management. Gower Publishing Ltd. 729 730 731 732 733 734 735

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144EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global ReachEMCM5203 ASSIGNMENT

736 737 738 739 740

9. APPENDIX A
MARK SHEET EMCM5203 ASSIGNMENT INTERNATIONAL PROJECT MANAGEMENT
0 to 4
Little or no effort evident in presentation

PRESENTATION (out of 10)

Overall presentation the look and feel of the assignment, cover sheet, page set out, appropriate use of footers and headers, and appropriate use of sections and subsections Language skills, grammar, spelling, clear and concise writing style, correct punctuation Effective usage and adaptation of figures and tables in assignment to clearly illustrate theoretical principles and the analysis of the chosen project, and to reduce overall word count Page numbering pages numbered Section numbering for all sections and sub-sections of assignment to comply with normal conventions

5
Limited effort evident in presentation

6
Adequate effort evident in presentation

7 to 8
Considerable effort evident in presentation

9 to 10
Excellent standard of presentation

/10

Low standard of language skills numerous mistakes Little or no effective usage of figures and tables

Basic standard of language skills numerous mistakes Limited or inappropriate usage of figures and tables

Adequate standard of language skills some mistakes Adequate and appropriate usage of figures and tables

Good standard of language skills - few mistakes Good usage of figures and tables

Excellent standard of language skills very few mistakes Excellent usage and adaptation of figures and tables

Limited or no page numbering Limited or no section numbering system used

Basic page numbering Adequate section numbering system used

Comprehensive page numbering complying with normal conventions Comprehensive section and sub-section numbering used

RESEARCH & ACADEMIC APPROACH (out of 20)

Evidence of knowledge of study materials and general knowledge of the project management domain

0 to 9
Little or no Indication of knowledge of study materials

10 to 12
Indication of limited knowledge of study materials

13 to 14
Indication of adequate knowledge of study materials

15 to 16
Evidence of considerable knowledge of study materials and of PM

17 to 20 /20
Evidence of extensive knowledge of study materials and of PM domain

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147EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global ReachEMCM5203 ASSIGNMENT

domain Assignment structure and argument Evidence of research to support the argument and the analysis in the assignment, Quality of resources use of research resources from quality sources (e.g. journal articles, texts, conference papers, etc) Use of appropriate theoretical principles as a framework to justify analysis, discussion and argument, and integrated into the analytical discussion on the project Effective and appropriate usage of citations using Harvard or APA style List of references Poorly structured and no logical argument Little or no evidence of research Appropriate structure and argument Adequate evidence of research beyond the study materials and set text Adequate quality of sources of research Well structured and logical argument Considerable evidence of research beyond the study materials and set text Evidence of extensive research beyond the study materials and set text to support the analysis and argument Excellent sources of research resources, including journals, texts, conference papers, etc. Extensive use of theoretical principles and appropriate application to the project and its environment Extensive and appropriate use of citations to reflect use of theory in discussion and argument Comprehensive list of references reflecting wide range of quality research resources

Little or no evidence of research beyond the study materials and set text

Poor quality sources of reference materials (e.g. websites, Wikipedia, etc) Little or no use of theoretical principles

Limited use of theoretical principles

Adequate use of theoretical principles

Good use of theoretical principles

Little or poor use of citations

Limited use of citations

Adequate use of citations

Inadequate or no list of references reflecting poor range of research materials

List of references reflects limited range of research materials

List of references reflects acceptable range of research materials

Good use of citations to indicate use of theory in discussion and argument List of references reflects good range of research materials

ASSIGNMENT REQUIREMENTS (out of 70)

Executive summary (ES) to indicate the nature of the assignment, background details, research findings and recommendations where appropriate, and to function as a stand-alone document Table of contents to include all sections and subsections of

0 to 34
No ES provided, or poor quality ES that does not provide the required information

35 to 44
Basic ES that provides limited information, or does not provide information in a clear and concise manner

45 to 52
Adequate ES that provides sufficient information

53 to 59
Good ES providing the required information in a clear and concise manner

60 to 70
Comprehensive ES providing the required information in a clear and concise manner

/70

No table of contents provided

Basic table of contents with most

Comprehensive table of contents with all details

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150EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global ReachEMCM5203 ASSIGNMENT

assignment, list of references, list of appendices, list of figures and list of tables, all with page numbering 1. Introduction to provide an explanation of the reason for preparing the document and a brief summary of the contents 2. Project background to provide details of the nature of the project 3.Critically analyze your project environment Analysis of project environment using the PESTLE framework

details provided

provided, and set out to a professional standard Good clear introduction provided Clear, concise and comprehensive introduction providing essential details Clear, concise and comprehensive background providing essential details Clear, concise and comprehensive discussion on the topic, supported by appropriate theory, figures and tables. Clear, concise and comprehensive discussion on the topic, supported by appropriate theory, figures and tables. Clear, concise and comprehensive discussion on the topic, supported by appropriate theory, figures and tables. Clear, concise and comprehensive discussion on the topic, supported by

No introduction provided, or irrelevant information No background provided, or inadequate information provided Little or no discussion on topic

Basic introduction provided

Appropriate introduction provided

Basic or limited background information provided

Appropriate level of detail provided

Good level of detail provided

Basic discussion on topic and little use of theory

Adequate discussion on topic using appropriate theory

Good discussion on topic using appropriate theory

4.Critically analyze the risk management of the project Critical analysis of the risk management applied to the project, including risk identification, risk analysis, risk response planning and risk monitoring and control 5.Critical Success Factors Critical success factors of the project in relation to risk and PESTLE analysis project success Critical success factors of the project in relation to risk and PESTLE analysis project management success

Little or no discussion on topic

Basic discussion on topic and little use of theory

Adequate discussion on topic using appropriate theory

Good discussion on topic using appropriate theory

Little or no discussion on topic

Basic discussion on topic and little use of theory

Adequate discussion on topic using appropriate theory Adequate discussion on topic using appropriate theory

Good discussion on topic using appropriate theory

Little or no discussion on topic

Basic discussion on topic and little use of theory

Good discussion on topic using appropriate theory

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153EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global ReachEMCM5203 ASSIGNMENT

6. Conclusions to provide a summary of the findings and lessons learned from the analysis of the selected project, including any threats to the selected, or similar, projects 7. Recommendations to provide recommendations in response to the specific conclusions and lessons learned Appendices (where applicable) to provide appropriate additional and relevant information and/or documents to support the discussions and arguments in the body of the text

Limited or no conclusions provided

Basic conclusions provided

Appropriate conclusions derived from the preceding analysis Appropriate recommendations provided Appropriate use of appendices

Good conclusions derived from the preceding analysis

Limited or no recommendations provided Inappropriate use, or lack, of appendices

Basic recommendations provided

Good recommendations provided

appropriate theory, figures and tables. Clear, concise and comprehensive conclusions derived from, and justifiably supported by, the preceding analysis Clear, concise and comprehensive recommendations, addressing the conclusions. Good use of appropriate appendices, and correctly titled and numbered

TOTAL MARK (Out of 100) 741

742Marker to summarize strengths and weaknesses: 743 744Presentation skills 745 746Research skills 747 748Analytical skills 749 750Major strengths 751 752Major weaknesses

/100

753 754 755

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156EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global ReachEMCM5203 ASSIGNMENT

756 757 758 759 760 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 785 786

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159EMCM5203 ASSIGNMENTEnron in India: The Dabhol Power Project and Enron's Global ReachEMCM5203 ASSIGNMENT

787

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