Risk Management:Elevated Metros

5. Construction in a Public Environment

Elevated Metros are generally constructed in high density median pockets. Majority of elevated metro projects are in a public environment, so past experience on such projects can be drawn upon in order to develop a mitigation approach for this risk. Good international practices should be brought into the country for improving safety standards. Once the identification of restraints, schedule impacts and resource (staff and equipment) requirements is done, safety procedures may be developed based on international standards and adherence to them should be ensured through a team of supervisors. One good example of frequent safety violation which is visible on some of the Elevated Metro projects that are being built around India is not having adequate spacing between the barricading for public pedestrian movement for crossing the roads. Measures need to be implemented prior to factoring in the project related safety risk of not allowing the pedestrians in the construction zone within the barricades.

6. Capital Expenditure Requirement

Elevated Metros may require lesser capital than underground Metros but still the capital requirement is quite significant. There is a risk of a significant increase also due to various factors. It?s important that the project is bid keeping all parameters in mind. A sound financial model is crucial and the Lender?s Agreement should be in place ahead of time. Ways to maximize the concessions revenues should be worked out considering the passenger mix, franchise mix, dwell time etc. and establishing the space criteria. An outline concessions management plan is useful and all space should be justified in economic terms. Project control processes, especially cost control and contract management, are useful in order to ensure the viability of the adopted financial model and plan.

7. Interface Management

Interfaces on any mega project are difficult to manage and need to be carefully planned out in the initial stages of the project. All issues should be addressed timely as the project moves along. In order to manage the interfaces well, the most effective approach is to identify the contract requirements, all interfacing parties working group and all interfacing system elements, and assign specific code to each interface before developing a Coordinated Interface Plan (CIP). There should be a schedule for interface resolution, allowing time for the iterative process. The document interface should be done through properly defined document management processes and procedures.

In addition to the above, some other key risks that have been commonly identified for metro projects include regulatory risks, financial risks, complex construction risks, land availability/site selection risks, general due diligence risks, safety risks, operational risks, Risks related to transition management from project to operation stage, revenue risks due to traffic fluctuations and finally risks due to an disaster. A complete risk register needs to be developed for the monitoring and management of all risks identified on a particular project. A collaborative effort between the government and the various stakeholders is required to facilitate the preparation and monitoring of a comprehensive risk register. Even though the reality of the various risks is obvious in many cases, the concept of these risks being monitored and resolved is fairly new in elevated metro projects in India.