Risk Management in Hydro electric Projects

Abstract

Construction projects are usually more complicated, unique and risky due to the nature of different activities involved. Hydroelectric projects are not so much successful in Indian scenario due to the different risks involved in different activities in hydroelectric projects. So the main objective of this research is to evaluate most, common and major risks involved in hydroelectric projects. A risk management process is evolved to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. In order to achieve the project objectives, a proper risk management is necessary. Risk management is a process of identifying, classifying, analyzing, assessing and controlling of risks in a project. There are several techniques for risk analysis such as calculating Risk Potential, Sensitivity Analysis and Monte Carlo Simulation. In this project questionnaire survey was conducted among twenty respondents from different organizations to collect data. Risk potential values of different factors are calculated to rank the risk factors based on the ratings given by respondents. Also risk assessment matrix has been formed based on the probability index and severity index to prioritize risk factors. After the analysis top ten factors has been found such as land acquisition problems, resettlement and rehabilitation, unpredicted geological structure at tunneling sites, precipitation/ flooding, labor strikes, adverse geological conditions, access conditions, time constraint, natural disasters, paucity of funds which should be given more importance and should be managed properly to achieve the project objectives. Also some risk mitigation techniques are suggested in this report for top ranked factors which may be referred in the hydroelectric projects in future.