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RISK MANAGEMENT PLAN PADMA MULTIPURPOSE BRIDGE PROJECT

Prepared by Sakib Shahriar 13122460

Sakib Shahriar | 13122460

CONTENTS LIST OF TABLES……………………………………………………………………… iii LIST OF FIGURES…………………………………………………………………….

iv

EXECUTIVE SUMMARY…………………………………………………………….

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1. INTRODUCTION…………………………………………………...…………

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1.1 Project Overview……………………………………………...…………… 2 1.2 Direct Purpose…………………………………………...…...….…………

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1.3 Indirect Purpose………………………………………….………………...

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1.4 Risk Management Process Applied…………………….….………………

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2. ESTABLISH CONTEXT………………………………………..……………..

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2.1 Internal Context………………………………………………..…………..

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2.2 External Context………………………………………………..………….

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2.3 Risk Management Context………………………………………..……….

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2.4 Risk Criteria………………………………………………………..………

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2.5 Stakeholders Analysis………………………………………………..…….

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2.6 Roles and Responsibilities……………………………………………..…... 8 3. COMMUNICATION AND CONSULTATION…………………………..…..

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3.1 Internal Communication………………………………………………..…. 9 3.2 External Communication………………………………………………..… 9 4. RISK ASSESSMENT PROCESS…………………………………………….... 10 4.1 Identify Risk……………………………………………………………… 10 4.1.1 Identification Method………………………………..………………. 10 4.1.2 Risk Scope……………………………………………………………. 11 4.1.3 Risk Register………………………………………………………… 11 4.2 Risk Analysis……………………………………………………………... 11 4.2.1 Risk Analysis Method………………………………………………. 11 4.2.2 Existing Risk Controls……………………………………………… 12 4.3 Risk Evaluation…………………………………………………………. 12 4.3.1 Evaluation Method…………………………………………………

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4.3.2 Key Risk For Treatment……………………………………………

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5. RISK TREATMENT…………………………………………………………… 14 5.1 Treatment Options………………………………………………………. 14 Padma Multi-Purpose Bridge i

Sakib Shahriar | 13122460 6. RISK MONITORING AND REVIEW……………………………….….……

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6.1 Process…………………………………………………………………. 14 6.2 Risk Closure……………………………………………………………. 15 7. DISCUSSION…………………………………………………………………… 15 8. REFERENCES………………………………………………………………..… 16 9. APPENDICES…………………………………………………………………… 17 Appendix #A Example…………………………………………………………… 17 Appendix #B FMEA Chart………………………………………………………. 19

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Sakib Shahriar | 13122460 LIST OF TABLES

Table 1: Stakeholders Analysis…………………………………………………………… 7 Table 2: Personnel Roles and Responsibilities…………………………………………… 8 Table 3: Qualitative Risk Assessment Matrix……………………………………………. 11 Table 4: Level of risk, Likelihood, and Consequences…………………………………………… 12

Table 5: Periodic Monitoring ……...……………………………………………………… 14

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Sakib Shahriar | 13122460 LIST OF FIGURES

Figure 1: Padma Multipurpose Bridge Project…………………………………………… 3 Figure 2: Risk Management Plan………………………………………………………… 4 Figure 3: ALARP Principle……………………………………………………………… 13

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Sakib Shahriar | 13122460 EXECUTIVE SUMMARY This paper explains the risk management plan for Padma Multipurpose Road-Rail Bridge Project in Bangladesh. The government started this project in November 2014 with multiple Chinese companies named China Railway Group Limited (CREC) and Sinohydro in accordance with the Australian risk management standard AS/NZS ISO 31000:2009. In the beginning, the project overview is presented including a brief history of the Padma River, the bridge location, budget, duration of the completion. In addition, the objectives of this project are defined.

The second phase, the risks criteria were established along with other stakeholders’ roles and responsibilities. So, it is established that the bridge can be built without any natural risk. Construction process also plays a major part in the importance of that area has also been mentioned. Thirdly, communication and consultation of a risk management plan are established. Different types and methods of communication and consultation are also explained in this area. The risk management process is also identified, analyzed and evaluated. This section explains how risk management plans can handle all the risks tackling process and procedures. Different types of alternatives were also been mentioned in this phase. Finally, few methods are identified to battle the risks and it was legislated that methods of treating all the risks should be according to the planned action. This section also broadly describes the planned actions and procedures for each of the risks. In addition, it also demonstrates the actions for failed risk management procedure. Also, a clear process has been described in this section about how a risk management plan can be monitored, reviewed and customized.

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Sakib Shahriar | 13122460 1. INTRODUCTION It is very important for an organization to identify what risks are involved with any project. Bangladesh Government with China Railway Group Limited (CREC) and Sinohydro Corporation are identifying the risks and, in the meantime, establishing the risk management plan in accordance with AS/NZS ISO 31000:2009 to minimize risks in this project. 1.1 Project Overview Bangladesh is a land of rivers. The Padma, Meghna, Jamuna, Karnaphuli are the main rivers of Bangladesh. Amongst all, The Padma is the biggest river. The river is also known as the most rapid current river of Bangladesh. For this reason, not only the Bangladesh government but also the stakeholders took a long time to think whether it is possible to construct a bridge over the Padma river or not. At the very beginning Bangladesh government tried to fund the whole project by its own reserves but as a developing country, it was not feasible. So, they tried to get financial support from all over the world. In response to that World Bank, Asian Development Bank and other financial bodies came forward to support this huge investment. However, there were some ongoing financial issues and those organizations decided not to invest in this project, but after three years finally, two Chinese companies agreed to invest in this project with some conditions so, the project formerly begins in November 2014. Upon completion of this project, it will be the biggest superstructure of Bangladesh and the first fixed river crossing communication for road traffic. The project has shown that the main bridge length is 6.15 kilometers with the viaduct of 3.148 kilometers (Road), 532 meters (Rail). The bridge will connect the southern part of Capital Dhaka with south-west districts of the country. The total approach road is required for this bridge is 12.12 kilometers while total training work estimated around 14 kilometers (1.6 kilometers Mawa and 12.4 kilometers in Janjira). So, the total land required for this project would be 1,471 hectors. The estimated completion date for this project is December 2020 with the total investment of $3.692 billion. (Bangladesh Bridge Authority 2015, Page 1)

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Figure 1: Padma Multipurpose Bridge Project

The Padma Multipurpose Bridge construction project includes ➢ Construction the main bridge structure ➢ Construction river training work required for main bridge ➢ Jinjira approach road and Mawa approach road ➢ Settlement of land acquisition ➢ Install management support consultancy Padma multipurpose bridge construction project is defined by two major purpose-

1.2 Direct Purpose ➢ In order to cross the river, every day thousands of people face the intolerable traffic jam due to the slow mode of transportation. During the holiday period, it becomes worse. So construction of the bridge will be a blessing for those people.

➢ This bridge will be an economic booster for a country like Bangladesh because the southern part of this country are not developed like other parts so this massive project will ensure the economic safety for the people of this r

1.2.1 Indirect Purpose ➢ Bangladesh entered into the list of a developing country last year. As a new member of developing country, Bangladesh might show its strong economic

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Sakib Shahriar | 13122460 power through the project as a good investment is coming from Bangladesh government.

➢ Padma Bridge, when commissioned, will boost the GDP by as much as 1.2 percent. (Wikipedia 2018, Para 8)

1.2.2 Risk Management Process Applied Constructing a bridge over the most rapid current river in Bangladesh is a challenge. There is a number of actions involved in this project such as compositing the piles, creating a damn for installing the piles, land acquisition issues, approach road making etc. It is clear that, if this project is completed it will be the biggest bridge in Bangladesh. To ensure the effectiveness of risk management, the standard method has to be applied. In this project AS/NZS ISO 31000:2009 is used to guide the whole risk management process. Risk management process is given below-

Figure 2: Risk Management Plan (Standard Australia 2009) In this above figure, a risk management process is shown where there are total seven categories. All of these categories are vital to making a risk management plan.

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Sakib Shahriar | 13122460 2. ESTABLISH CONTEXT Before making any risk management plan effective, identify the context is required as per AS/NZS ISO 31000:2009. This stage includes establishing the internal context as well as external context.

2.1 Internal Context Bangladesh government launched a tender paper for making the bridge in July 2014. Few major companies like China Major Bridge Engineering Company, Daelim-L&T JV, and Samsung C&T Corporation - purchased the tender papers. But at the end, the only China Major Bridge Engineering Company submitted their bid. (Wikipedia 2018, Para 6) The Bangladesh government gave the contract to CMBE. China Major Bridge Engineering Company’s trade name is China Railway Group Limited (CREC) and CREC agreed to invest 70% cost in making this bridge. (Wikipedia 2018, Para 6) CREC is internationally renowned which is found in 2007. This company made some massive bridges in the past. They were involved in famous 36 kilometers Hangzhou Bay Bridge, the longest sea-crossing bridge in the world. (CREC 2015, Page 1) The structure design part is done by AECOM which is an American multinational engineering firm. AECOM is founded in 1990. There is a lot of projects done by AECOM such as 2016 Summer Olympic, Al Raha Beach (Dubai), China National Convention Center etc. (AECOM 2018, Page 1) There is another international company named Synohydro Corporation Limited, China who got a contract from Bangladesh government to make 14 kilometers river training road (1.6 kilometers toward Mawa and 12.4 kilometers towards Jinjira). Sinohydro is one of the oldest construction company in China founded in 1950. (Sinohydro 2012, Page 1) Not only these international companies but also some national department of the groups engaged making this project. Other departments are: ➢ Bangladesh Bridge and Road Unit ➢ River Training work unit ➢ Environment Safety Unit ➢ Land Acquisition Unit ➢ Construction supervision consultant unit (CSC) ➢ Human Resource & Maintenance Department ➢ Internal audit team Page | 5 Padma Multi-Purpose Bridge

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All these departments are working very hard to complete this valuable project. Though CREC will get the after benefits from the bridge which is very obvious and acceptable, others departments are also doing it with some other objectives, including: ➢ Bangladesh is a populated country so they can get their investment within 5-7 years ➢ CMBE will be well-known more if they make the project success ➢ People can easily move from northern and eastern of the country to south-west regions ➢ Improve international fame of the country 2.2 External Context To construct a bridge there is a requirement of making training roads and as this project is a massive one, it will be difficult to have such a huge amount of land for the training road. The government has to acquire those lands at a high price which help the surrounding locality economically. On the other hand, there are some challenges to this project. Firstly it is built on the most rapid stream river in Bangladesh and for this reason, engineers cannot install the pier smoothly. Sometimes they have to wait for low-tide to carry out the works. So the completion date may get extended which will directly affect the external contexts. Secondly, as most of the lands are occupied by landowners, the government has to purchase those lands at a high price. The District Deputy Commissioners (DCs) are giving compensation under Law (CCL) for the affected eligible Entitled Persons (Eps) for their lands, crops, and trees.

2.3 Risk Management Context The main focus of the risk management context is to minimize all kinds of risk that might occur during the project. All kinds of risk should be identified and treated which ensure that the project completed on time with all the requirements and also within budget. The plan will be always monitoring the risk until the completion of the project.

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Sakib Shahriar | 13122460 2.4 Risk Criteria Padma Multipurpose Bridge is a big project, so a huge number of elements included in the construction project, time schedule, raw material price rise etc. It is highly unlikely to cover all risks in this risk management plan, but risks which have consequences exceed a certain level will be considered. Risk criteria for major risks are as follows: •

The risk possibly leads to injury or death because it deals with the construction work

•

Different types of major risk exceed $2M or over planned budget.

•

The risk is not met with the current knowledge and technology

2.5 Stakeholders Analysis Padma Multipurpose Bridge project has a huge number of stakeholders which is obvious for a large project. Stakeholders are categorized as an internal and external stakeholder in the following table:

Table 1: Stakeholders Analysis

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Sakib Shahriar | 13122460 2.6 Roles and Responsibilities To make an effective risk management plan it needs to define the roles and responsibilities of each individual who are involved in this project. Roles and Responsibilities are as follows:

Position

Role/ Responsibilities Review / Approve Risk Mangement Plan Review / Approve Risk Management Assessment

Project Director Review / Approve Project Policy Give solution for risk issue Identify Risks Prepare Risk Policy Risk Manager Prepare Risk Management Plan Monitor Risks

Finance and Accounts Manager

Staffs

Internal Audit

External Audit

Maintain a detailed budget report and monitor it continuously Ensure whether risks are implementing in all stages according to the risk management plan or not. unfortunate periodic audit to ensure successful implementation risk management process. Experienced external audit to ensure whether internal audit doing their work effectively or not

Table 2: Personnel Roles and Responsibilities

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Sakib Shahriar | 13122460 3. COMMUNICATION AND CONSULTATION As this is a huge construction project so surely it requires a lot of parties involved to complete this project. Risk management is a joint venture of all the related parties. All party’s effectual communication is also required to address the risk. There are two communication processes. Internal communication process and external communication process.

3.1 Internal Communication This section deals with the communication within the internal party’s as to how they are doing their work, what procedures should they follow to minimize risk etc. There are some individuals as well as some units are handling this project like Project Directors officer, river training work road unit, Bangladesh road authority, Environment safety unit etc. They are all should be communicated in a systematic way. Here are some strategies that can be followed for internal communication. ➢ The pre-work briefing among the people who are directly involved with the work ➢ Consult with the immediate senior person if anything sees which is wrong ➢ Executive briefing session among the party’s at least one in a week. ➢ Contingency heat treatment meeting ➢ Analysis of all the risk during the work period on a weekly basis ➢ Review all stakeholders interest either successfully considered or not ➢ Preparation of risk management update report for stakeholders 3.2 External Communication Most common external communication is to inform and consult its external stakeholders about how this project managing the risks, to deal with stakeholder expectation about what the organization can deliver. Effective external communication and consultation ensure that stakeholders understand the basis on which decisions are made. It is also important for stakeholders that they can understand how the project is going or what risk can occur during the construction process. For this project, an internationally recognized quality engineer has been appointed under ADB TA loan financing for designing the works, review and check the design according to standard practices for large infrastructure projects. Page | 9 Padma Multi-Purpose Bridge

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Besides this is a large project, so all the involved parties demands should be considered at a certain level. A well-made risk management stakeholder should consider and determine its major components. From the above reference to the initial element, the corporate site is specifically necessary for external real-time risk communication. (Atlasian, Content 1.2)

4. RISK ASSESSMENT PROCESS This section deals with risk identification, analysis, and evaluation related to the established criteria accordance with AS/NZS ISO 31000:2009. Techniques used in this section with respect to IEC/ISO 31010:2009.

4.1 Identify Risk Risk identification is one of the important processes of risk management plan because in this stage all possible risks are identified related to the project. Also without this process risk analysis risk evaluation and risk treatment cannot be done.

4.1.1 Identification Method There are a lot of methods and techniques can be taken place to identify risks. Based on the type of project, methods are used in risk management plan. For Padma Multipurpose Bridge project only two types of methods are used which are checklist method and Brainstorming Method. ➢ Check-list Method As China railway group limited are experienced in constructing bridges, it is easy for them to carry on their work based on their experience. They can make their own checklist from their past experience and apply in this project. ➢ Brainstorming Method Another method is the brainstorming method is used to generate other risk associated as well as other breakdown structure of the construction and arrange the FMEA study on these risks.

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Sakib Shahriar | 13122460 4.1.2 Risk Scope Bangladesh Government and CREC have jointly created a risk management plan for this project in accordance with the Australian standards resulting all kinds of risk related to environment and public health and safety are considered and recorded in the risk register. 4.1.3 Risk Register Risk register mainly used to record and summarize all the possible findings during the project. To ensure maximum creditability, this...