Loss of value: effects of delay on hydropower stakeholders

Abstract

Preconstruction delays (in some countries referred to as planning delays) are traditionally considered less damaging than delays that occur during construction. It transpires from this analysis that, for many project stakeholders of a hydropower project, delay before construction starts is just as damaging as time lost during construction, sometimes more so. In particular, preconstruction delay could adversely affect the government, the local people affected by the project, the environment and the project beneficiaries (e.g. consumers of power or water or those benefiting from flood protection). The project developer is adversely affected by preconstruction delay, but generally not to the same extent as by construction delay, and may thus appear to be more focused on minimising construction cost and time overruns. This research is set in a developing country context, where the economic stakes are higher and the effect of delay may be more obvious than in developed economies.