RISKS ON SCHEDULE OF NUCLEAR POWER PLANT PROJECT IN

VIETNAM

By

Nguyen The Phuong

Abstract

The research focuses on risks that can occur and made Vietnam NPP project delay. The main objectives are following: (1) to study risks which may affect to schedule of NPP project; (2) to study the difference perception of three major parties in project, owner, consultant and contractor; (3) what is most important risks in each stage of project; and on responsibility of major parties in project.

At the beginning stage, all risks that are related to NPP project in Vietnam searched. It is made though breakdown the procedure for NPP project; collect schedule risks of NPP projects in the world; risks from construction project studies and guide, experience from some international experts. The questionnaire is built with 81 risks, divided into 11 groups: risks relate to project decision - making stage; bidding stage; design stage; owner and consultant in construction stage; contractor in construction stage; payment; commissioning and pre-operation; human resource; government management; regulation, approval; and external risk.

The quantitative method is used to assess the risks, include level of likelihood and consequence of the risk. Respondents are consultants, contractors, owners, experts who have experience in NPP and knowledge about Vietnam investment environment. A total of 62 respondents completed the questionnaires. After collecting the data, risks were ranked base on likelihood, consequence and important mean in total the project and in each group, in that delay in approval procedure for site selection is the most important of the project.

There are differences in perception of parties. Owners indicate that most causes of delay are related to contractor and regular – approval; consultants agreed that problems relating to government and some of owner are most important; while, contractors pointed out that important risks are responsibilities of owner and some are of government. In assessing the level of most important risks, mean of important risks is calculated by owner is the lowest, and of contractor is the highest.

The result has indicated that the most important problems of Owner that cause delay in the NPP project are regulation approval; management; human. Most responsibility of contractor came out during the design stage. While, Government has great responsibility related to regular approval problem; finance; and human resource.

Executive summary

Rationale of research

This research has been conducted to study delay risk in Nuclear power plants projects in Vietnam.

Objectives of study

Study risks which may affect to schedule of NPP project and difference in perception of three major parties in project, owner, consultant and contractor.

Rank most important risks at each stage of project; on responsibility of major parties in project.

Methodology  

The literature review of management process is studied to find out the main activities, its tasks and risks in each task was analyzed first. Finding schedule risks in construction, NPP project in the world also on documents and from international experts, the owner, contractor and consultant.

Data collection, information, opinion about the risks had been collected from experts about NPP project.

Findings and conclusion

Based on the world reports about the NPP project practice, delay in construction project in

Vietnam, opinions of experts, partners’ relation to the project, and researcher get 81 risks that can influence to schedule of NPP project in Vietnam. The project was done for a long time. In addition, this is the first time Vietnam builds a NPP project, so there are many new problems arisen in human resource and regulatory. Total risks are divided into 11 groups which include: risks relate to project decision - making stage; bidding stage; design stage; owner and consultant in construction stage; contractor in construction stage; payment; commissioning and pre-operation; human resource; government management; regulation, approval; and external risk.

Responsibility of major parties

• Owner

Result has indicated that the first problem of Owner that cause delay in the NPP project is regulation approval. Many great risks in the area are delay in approval procedure for site selection and delay in licensing procedure in the design process. The second problem of

Owner is management. The risks which are indicated the most are poor management of owner in budgeting and scheduling, ultimate cost of the plant exceeds original budget and funding expectations. Another important problem of Owner is human resource. Owner’s lack of trained personnel and lack of qualified professional in bidding stage are two risks indicated.

• Consultant

Consultant has the responsibility to assist Owner in management the project. So, the responsibility about human resource should also divide to Consultant. Besides, consultant is still warned with communication, coordination between parties, conflict and lack of supervision in a number of jobs problems.

• Contractor

Most responsibility of Contractor came out during the design stage. The most problems occurred are late design completion and all identifiable engineering before construction starts; and design that does not meet the quality and safety standard. In addition, some other problems that can influence to schedule of the project are shortage of experience, skill workers, equipment’s, error in construction of sub-contractor, and machinery breakdown in hot testing and commissioning phase.

• Government

Government has great responsibility related to regular approval problem in the first NPP project. Delay in approval procedure such as licensing procedure and lack of circular, and regulations are most interesting to almost all parties. The second issue is about finance like delay in state budget due to political decision associated to financial conditions and difficulty in arranging foreign loans are ranked at high level. Third is human resource problem that all parties are worried. In this problem, regulation, training, and research agency’s lack of manpower is point out. The last most important risks of Government are related to management problem, in that, typical is lack of regulation and support agency relating to the project.