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Urban Development

Lahore Orange Line Metro Train (OLMT) project: A Critical Review

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The mega projects are kind of integrated activities which can be classified as projects having high complexity in terms of technology and human usage. These projects are usually of greater costs and for the broader development of a state.  They are of extreme physical structure, high capacity working, expensive and under huge attention of public and government.  The mega projects can be of different sectors like energy, infrastructure, and communication and others. As these projects are launched with bigger aims, the economic units are also measured in million dollars. For this gigantic amount, a developing country like Pakistan has to make a plan or strategy for its long term functioning. Since 2015, Pakistan has signed a number of mega projects with china under the flag of China Pakistan Economic Corridor (CPEC), not just with China but with other states also. 

Mega Projects in Pakistan

In addition to that, a number of developmental projects are domestically initiated. These projects include transport like railway, airports, highways, buses, power plants, dams, economic zones etc. The rationale is to get collective benefits and to open frontiers. The policy makers are always looking forward to the mega projects for their economic, political, technological and aesthetic sublime. The greater concern in starting these kinds of project revolves around the issue of higher costs. Many critics expressed that these projects need hard core planning for taking them upon considerations as there are high stakes involved specially for the country like Pakistan. The focus here is to find out the issue areas that should be examine for the success of large scale projects. The project under study is Lahore Orange Line Metro train (OLMT). 

Lahore Orange Line Metro train (OLMT)

The demand and supply in the urban lines of traffic has been increasing widely specially in a Lahore as it the second largest urban sector in Pakistan. The need of mass transit system was long felt and in May 2014, the project was signed between Pakistan and China as memorandum of understanding and is expected to be completed by 2017. As Christopher Midler explains the innovation of developmental ideas, this project was also innovatively commissioned for the development of long-term mass transit network for the feasibility of transport in the city. The financing was started in 2015 with the soft loan of 1.55b dollars. The phase 2 of the project started in 2016 and first test ran in 2018. This project has been through a bumpy road of non-completion and expected to be completed this year in October 2020.

Critical Analysis

Denicol has executed six themes of analysis, after analyzing literature of good 86 articles, which are considered as conceptual framework to review the project of OLMT. Following are the themes which will help critically analyze the OLMT project:

1. Decision-making behavior

The poor performance through decision making is significantly related in literature of mega projects. This is due to the behavioral faults and faulty assessments with regards to the benefits and cost of the project. In addition to that, executives of the project usually misrepresent the trust in order to satisfy their personal interests. The behavior of the decision makers are resulted in unsuccessful outcomes as their behavior towards policies are obstinate and inflexible. 

In the OLMT project, it was assessed that it will be completed by 2017 but unfortunately not completed yet. Every passing year, the government announced the running of train for public in particular year. This has been delaying due to the defective evaluation and calculation of time with respect to finalization of project.

In addition to that, the cost of project was estimated incorrect as later on, it become double to what evaluated earlier. According to a senior official working on the project, the rolling stock, track, electrical and mechanical work s costs are almost double than civil structure. The higher cost and faulty assessment has made the government pay money through loans and thus, delayed the project overall. 

2. Strategy, Governance and Procurement

This involves the processes during the initiation and planning which reflects the front-end stage of the project. The decisions are made initially about the three main components that are role and responsibilities of the entities throughout the life cycle of project, formal and informal authority at both, institutional level and individual level and lastly, strategy to organize in terms of relation to the partners to get the best delivery or outcome. 

For the front to end stages, the written details are the foremost requirement as a great amount of money has to spend on it. In addition, the officials and those informally associated should have an organized definition and clarity of role and responsibilities that must be stated beforehand.  The OLMT is considered as star project of previous PML-N government. The contractors were asked to show a detailed presentation which they were dearth of. 

Additionally, the officials were given dead line by the Supreme Court of Pakistan to complete the project till May 2019. Still the government failed to meet the direction due to the litigation on heritage sites and the land acquisition problems. This delay means that the strategy or planning for the organized running of project has been neglected from the beginning.  

3. Risk and Uncertainty

It involves the process of technological development and decision making strategy to overcome the risk or uncertainties in mega projects. The technological originality to preemptively work on risk management and the preparedness for uncertain situations. There is a need of flexibility in the decision making process as well as there must be no time constraints. It has been observed that OLMT is equipped with a good quality and non-joint tracks of international standards. The metro line constructed before in the capital has been found doomed due to the infrastructure and technology faults. The Orange Line Metro Train is fully automatic and driverless, which leaves no compromise on standards can be taken at any cost. For instance, it will solely work on electricity which is again a high risk in a state like Pakistan. A good management will be highly required for regular check on working.

4. Leadership

Leadership is something required for any project to fulfil under the supervision and a hard working team and the relationship between the two. In a country like Pakistan, there is lacking sense of project culture and thus a misalignment can be observed. There should be a team work where the project must be design in a way to damage less and provide much gains and long term gains to the state collectively. According to a study more than 40 schools and colleges demolished for the making of a train track which is a huge responsibility on the leadership and the team.

5. Stake-holder engagement and management

It includes the structure formation under certain norms where it is necessary to engage stakeholders and community in the activities of project. Mosque, Churches, residential blocks, private businesses, traditional places, schools and colleges are either demolished fully or partially or threatened. This has terrified the general public and showed resentment at larger scale.

6. Supply-Chain integration and coordination 

It involved the integration of projects and sub projects and their commercial relationship. The primary cause of the poor performance is the independent working and lacking coordination at different levels. This OLMT project has also been designed on the poor understanding of architecture. It has destroyed many local businesses and important buildings which means that the route is not thoroughly coordinated and integrated.

These six themes are considered as gist to understand the loop holes in the successful regulation of mega projects from start till end. It is important to take up these points under consideration by the government for the large scale projects so to secure their trust of people and to take the country one step ahead. 

Recommendations

Pakistan as developing country needs to learn from other states and specially the literature that have been produced. There is a dire need to move step by step towards mega projects by understanding what has been missed and must not be taken for granted. Followings are some main learnings for the upholding of future mega projects:

• Preparedness

• Priority of customer satisfaction 

• Involving key decision makers from institutional to supply chain levels 

• Organizational responsiveness

• Skill and team work

• Management culture growth 

• Develop penalties for ignoring or providing misleading information

•  Introduce the option to defer to further assess risks

• The economic viability and avoid over commitment 

• Control and flexibility for political maneuvering 

• Emphasize on shorter pre-construction phase

• Higher probability of cost overrun

• Adopt integrated project teams to deliver the project

• Focus on simplification to avoid risks 

• Regular reports 

• Integration of stake holders and general masses 

• Integration of projects and sub projects 

• No compromise on Tech

• Competitive structures 

• Performance measurement

• Multi check and balance system 

These are only the basic and the focused measure that Pakistan should look forward in order to achieve long term and successful results. The first step that state should focus on is to research in order to understand the differences that Pakistan as a separate country faces. New studies must develop to learn from other states as well and to discuss the similarities and differences from other states. Still a key rule for these developmental mega project is to manage, evaluate and integrate for high performance.  

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Urban Development

Improve Quality of Life, Economic Opportunities in Cities to Build Sustainable Future

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Improving quality of life, and social and economic opportunities in Asia’s fast-growing cities are instrumental in fulfilling their potential as engines of economic prosperity and hubs for sustainability, says Creating Livable Asian Cities, a new book released today by the Asian Development Bank (ADB).

The publication examines the region’s urbanization challenges and presents solutions across five priority areas: smart and inclusive urban planning; sustainable transport that provides equitable access to services and opportunities; sustainable energy sources that are less polluting; innovative finance to bridge resource gaps; and greater climate and disaster resilience.

“Urbanization has driven regional productivity growth, but opportunities in cities have not been available to all residents and are further limited by the COVID-19 pandemic,” said ADB Vice-President for Knowledge Management and Sustainable Development Bambang Susantono, who co-edited the publication. “Cities in Asia and the Pacific are among the largest and most vibrant in the world, with many experiences and best practices to share. This publication collects these lessons and aims to guide cities to learn from common challenges and opportunities.”

Developing Asia is home to 17 of the 33 megacities with more than 10 million residents. More than half of the region’s 4 billion population lived in urban areas in 2019 and a billion more are expected to migrate to cities in the next 30 years. By 2050, the region’s urbanization rate could reach 64%. 

To plan for livable and sustainable cities that are people-centered and accessible, the report highlights the need for governments to employ smart and inclusive planning. This includes policies that promote the use of technology, data, and innovation to make urban services—mobility, social infrastructure, resilience management, and utilities, among others—more effective and efficient. For instance, using earth observation technology can help mitigate flood risks and better inform infrastructure projects.

Governments should also focus on sustainable transport and energy as these have a direct impact on people’s productivity, the vibrance of a city’s economic activity, and the environment’s sustainability. Increased mobility will help realize urban economic potential and increase inclusion. Sustainable transport solutions, for example, could include using electric vehicles in public transport systems. Sustainable energy options include household and community-level solar grids, which benefit as the price and availability of solar photovoltaic cells become cheaper and more widespread. Other options include waste-to-energy systems that can lead to improved urban sustainability.

Expanded access to finance will be instrumental in helping cities achieve targets outlined in the Sustainable Development Goals (SDGs). Cities will account for about 70% of the $1.7 trillion in annual investment developing countries need to meet the SDGs. The publication lays out innovative financing models such as new forms of private sector partnerships, capital market instruments and bonds for housing finance, and strengthening institutional frameworks and the capacity to apply value-capture mechanisms.

Lastly, the report highlights the need to improve the resilience of cities, particularly in response to climate change, natural disasters, and public health emergencies like the COVID-19 pandemic. Tools that can help build a city’s resilience include nature-based solutions, financial tools drawn from the insurance industry, and a range of operational approaches drawn from the lessons being learned while cities are responding to the pandemic.

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Urban Development

Suraj Morajkar – A celebrity home builder in Goa

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Suraj Morajkar has worked with almost all celebrities who have homes in Goa. He has also worked on key projects in Goa like The Hilton Goa Resort. His journey in real estate has been a spectacular one which leaves many people inspired to create more while giving back to society.

How did your journey in real estate start? Tell us more about your experience in this field till now. 

As a young boy from Goa I was always surrounded by beautiful architecture. That image has stayed with me all along. I have always wanted to create homes that would retain its posterity and the inspiration from Goan architecture which is a blend of Europe and it took us in that direction.

Tell us more about the role that international collaborations play in the real estate industry?

Our company was born with acumen for International standards. At first, we worked with local and national architects gradually moving to associate and engage with international architects who brought a different understanding and view for what we desired to create and build. We found tremendous change between what was getting acquired and the development done by the rest of the developers. Right from the beginning, since our brand took progressive involvements and engagements we were aligned towards international standards of design which aesthetically suit the local atmosphere. Also, such projects attract the right audience, enabling us to convert them to great addresses in Goa. We have collaborated with some very talented architects national and international. David Ruff of Nava Companies from New York. Blink Design group from Singapore, Robert Patzschke of Germany, Burega Farnell of Singapore, Lars Thomsen of Denmark, Edgar Demello of EDA Bangalore, Arvind D’Souza of ADA Goa.

Having built both commercial and residential real estate in Goa, which one do you like building more and why?

Both have their own charm. The commercial real estate we build is in conservative zone where there is a challenge in building commercial premises based on the old charm, which excites us more. We like the challenge of it and it gives us a lot of intellectual recognition. Residential housing gives us a chance to bring in a new flavour and add beauty to the local landscape.

What are some laws which help the real estate industry in India?

I could say that what helped us in my state of Goa is where the laws are local friendly to keep the village atmosphere whilst building something modern yet maintaining the locality of the place. The laws here are not of a city mentality.

Are there any specific policies in India which aid the real estate sector and contribute to its growth?

Policies like RERA aid in easing down the funding for the real estate sector through NBFC (Non Banking Financial Companies). RERA has helped to retain buyer’s confidence and also helped progress motion and drive in the real estate sector.

What do you wish was different about the real estate market in India?

I’m a local of Goa. My market is very different as compared to the other since the Indian real estate market is specific to the regions you belong to. 

For instance, we in Goa are not city specific per se. However, a metro city always has an expansion because of the population and desire of a middle class family to move to a larger home apartment or villa. Also, with the pandemic happening, people want to move to open spaces.

I think there should be the ease of funding and India should bring in foreign investment for the real estate sector which is their own banking institution and we should have access to the capital. Real estate should also have its own cooperative.

Since foreign investment is important, the government should have a policy that foreign investors can directly give money to builders as it is cheaper due to interest rates.

Out of other destinations in India, why did you choose Goa as the location for your real estate? 

Goa is home. It is obvious I chose Goa to create beautiful homes. 

What is different about the real estate market in Goa compared to other places in India?

Goa is a place where everyone comes to unwind; for peace of mind, for holiday homes, for tranquility and for some a wish to retire. Goa is an International tourist destination which gives you a blend of greenery of village life and beach getaway. This is the big difference and makes Goa global in terms of living standards.

Where do you see real estate in Goa going in the next 10 years? What policies do you think will be different about real estate in the country? 

I think since there is a great connectivity to Goa, it will be another Mecca of holiday homes, retirement options and settling down in India. The culture of Goa is here to stay as the people of Goa really care about their local aesthetics and environment.

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Urban Development

Preparing (Mega)Cities for the 2020s: An Innovative Image and Investment Diplomacy

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WAN

Globalized megacities will definitely dominate the future, in the same way as colonial empires dominated the 19th century and nation-states the 20th. A new geography of power is emerging, made up of global city networks. All in all, the attractiveness of cities is based on the hope of higher purchasing power through greater opportunities, for a better quality of life. Megacities have the potential to effectively fight against poverty and enhance living conditions for a large proportion of the population – if they are managed correctly and make the most of their advantages. Nonetheless, there is a drastic need for new urban models to tackle the associated social, economic, and environmental pressures in a sustainable way.

Cities are the new engines of growth in the global economy, responsible for 80% of global GDP. It is no longer just countries that compete, but cities as well. Like there is great power competition, so will the world’s great cities increasingly compete. Every city will have to gain a competitive edge to differentiate itself from the rest. Flexible and agile cities that can diversify their resources and offer economic, social, and cultural opportunities to their citizens will not only survive but thrive. The cities that are best equipped to produce innovative, inclusive, and ethical solutions in the face of multiplying risks and threats will emerge as leaders. A clear picture emerges: cities will compete and collaborate globally as interdependent entities and will drive the future.

Speaking about megacities, let’s look for example at Mumbai, which is the financial capital of India and the second-most populated city in the world. It is not only the subcontinent’s city with the highest GDP but also ranks among the world’s top ten trade centers. The city contributes 25% of industrial output and 70% of capital transactions to India’s economy. Important financial organizations such as the Reserve Bank of India and the National Stock Exchange of India are in Mumbai. It houses the headquarters of various multinational companies and has thus become an influential commercial and entertainment center of India. It would be foolish to ignore such cities in tomorrow’s global economy.

City diplomacy could be considered a form of decentralization of international relations management, choosing cities as the key actors. In many cases, the representatives of cities involved in city diplomacy will be the mayors, given that they are often responsible for the international relations of their communities. On behalf of their cities, these key actors can engage in relations with other actors on the international stage through two-sided or multiple-sided interactions. There is a lot of room for city diplomacy to grow. It can be driven by image or investment interests, development and strategic communications complete each other.

A city relationship is formally created when the mayors or highest elected or designated leaders from two communities sign a memorandum of understanding establishing the partnership. Nevertheless, this is usually the result of a long process that involves the local city organizations along with the municipalities and other local institutions. It takes a lot of work to get to this stage, so, as in many other cases, sustained effort and clear vision pay off. So, time to shape up the in house mayoral or county staff and consolidate a stellar local talent team of global reach.

Competition matters but so does cooperation. Collaborating with neighboring or nearby cities enables cities to plan and implement actions to address emissions from energy infrastructure, public transport, food systems, waste management, and other services that often operate across municipal borders and to address cross-border climate risks. It also helps cities overcome regional or national climate-policy barriers, share the cost of staff and equipment, and secure better access to data, funding, and technical assistance – all of which can motivate other cities in the area to participate as well.

Image and Investment demand a third I in the 2020s: Innovation. The fastest way to connect cities and counties is using technology. The technological progress of recent decades has had not only a powerful but also a transformative influence on urban life. As technology progresses and becomes more affordable, the functionality and sustainability of urban practices undergo significant advancements as well. At the same time, increased access to information consolidates the role of knowledge as a powerful engine of economic growth. This enables the development of knowledge-based and connected societies. Under these continuously evolving conditions, many concepts about the organization and management of the new technological capabilities have become popular, including the smart city.

To establish an approach for the ideal future of an urban settlement that harnesses technology should be part of the integrated processes that connect cities at a regional level. In the best-case scenario, a city that aspires to become „smart‟ has an integrated, forward-looking plan that includes a vision and a methodology focused on benefiting from digital technologies to improve urban functions and develop knowledge ecosystems. Like any strategy, the plans for smart cities must be adapted to the needs, priorities, and constraints of their circumstances.

Funding for smart city projects is still carved out of overall city or department budgets, either through existing spending (e.g., IT, lighting contracts) or designated ‘smart city’ spending, which is typically relatively small. It is therefore difficult to identify the exact amount local authorities allocate to such projects. Even though a lot of the investment for smart city projects comes from the general city budget, cities have found it most beneficial to have earmarked funds for innovation initiatives. At the moment, what is clear is that the funding and budgeting has to match the ambitions of big cities and transform the smart city objective into reality.

National governments are also encouraging cities to increase funding by boosting the participation of the private sector in delivering smart city projects. Businesses’ experience with participating in the delivery of smart city projects has been dominated by pilot projects often utilizing public sector grant funding. There is room for much more. Local authorities need to make more strides towards scaling pilot projects and procuring large-scale solutions. The city must be able to articulate clearly the challenges it faces and develop a more open way for the market to respond. The sky is the limit, if the game is played well. An innovative image and investment diplomacy operation is an important way forward.

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