Analysis of environmental constraints on successful delivery of independent power projects in Nigeria
Date
2019-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Federal University of Technology, Owerri
Abstract
The research work examined environmental constraints on successful delivery of Independent power projects (IPP) in Nigeria. This study is motivated by the delay in executing IPP over a long time and the poor underperforming nature of projects in the power sector. The purpose of this study is to establish the effect of these constraints on IPP delivery in Nigeria. The study made use of the objective realization questionnaires designed following the likert model and were administered to experts who work as financiers, contractors or consultants in the power sector. One hundred and seventy one (171) questionnaires were distributed from a population size of three hundred (300) with one hundred and twenty five (125) returned. Factor analysis and multiple regression models were used for data analysis. Twenty (20) environmental constraints were identified and selected after a careful review of literature on successful delivery of IPP. The identified constraints were further group to three (3) critical factors using the principal Component Varimax extraction (factor analysis) method which explain 80.03% variance. Three hypotheses were formulated and tested using statistical software package (SPSS) version 21 known as multiple regression analysis which comprises of F-test, ANOVA and t-test. The study revealed that three critical factors namely social, procurement and financial environmental constraints do significantly affects successful delivery of IPP in Nigeria at (Pvalue) of less than 0.05%. The Earned value analysis (EVA) model results indicate that six of the IPPs under study incurred negative cost overrun except Omoku IPP. Omoku IPP experiences time variation due to the identified constraints. It also infers that only Okpai IPP executed project within time frame, Aba integrated and Azura IPPs were ongoing (not completed) as at the time of visit. These indicate that none of the Plants were 100% optimal in production as a result of consequences of the stated constraints. The study concludes that investors in the power sector need identify and eliminate all constraints mentioned in this work at the planning stage before embarking on IPP delivery. In improving efficiency, the research recommended that stakeholders should take proper understanding of the variables identified in this work for easy management and prevention of cost and time overrun, as well as timely approval of power purchase agreement (PPA), gas purchase agreement, good enabling working environment, granting of long term loan by financial institutions to investors and transmission line capacity improvement.
Description
This thesis is for the award of Master of Science (MSc.) in Project Management Technology
Keywords
Environmental, constraints, independent power, project success, Department of Project Management Technology
Citation
Ngerem, T. C. (2019). Analysis of environmental constraints on successful delivery of independent power projects in Nigeria [Unpublished Master's Thesis]. Federal University of Technology, Owerri, Nigeria