The Construction Sector Value Chain in Pakistan and the Sahiwal Coal Power Project

Abstract

In the wake of the China Pakistan Economic Corridor (CPEC), the construction industry in Pakistan has received a significant boost. Investments by Chinese and Pakistani governments as well as private sectors are especially aimed at the construction of power plants and transport infrastructure. Historically, power shortages in Pakistan have been a major challenge facing domestic users as well as local and international investors and industrialists. To address some of these issues, CPEC ‘early harvest’ projects are aimed at eradicating the energy shortfall and enabling economic uplift. This sector is strictly regulated by the government of Pakistan and the development of new energy projects requires tedious and cumbersome processes, including bureaucratic reviews and approvals. Given the inefficiencies of government processes and sub-par project management practices, delays in construction are commonplace, leading to massive cost over-runs. However, Sahiwal Coal Power Project (SCPP), a 1320 MW coal-powered facility, was completed in just 22 months, 22 days ahead of the internal control milestone plan, and 200 days ahead of the contract period. This study uses the project management framework to assess what learnings could be drawn from the construction of SCPP. It shows that factors such as proper project scheduling, efficient site management, a skilled labour force and governmental support played a key role in the timely completion of this project.