Presentation on theme: "Delhi Metro A Project Management Bench Mark Presentation By Kumar Keshav Director (Project &Planning), DMRC 23 rd June, 2011."— Presentation transcript:
Delhi Metro A Project Management Bench Mark Presentation By Kumar Keshav Director (Project &Planning), DMRC 23 rd June, 2011
Delhi Metro Rail Corporation (DMRC) Set up in May’95 under the Indian Companies Act. A joint venture between the Federal Government of India and the Provincial Government of Delhi State, with equal equity. DMRC has the responsibility for construction and operation of Delhi Metro. 2
Delhi Metro Rail Corporation (DMRC) A Master Plan had been drawn up for Delhi Metro expansion, consisting of 12 lines, covering 420 kms. to be completed by 2021 in four Phases. Works started on Phase I on 1 st October, 1998 and completed in December, 2005. Phase-I – 65 kms. Cost US $ 2.5 billion. Completed in 7 years and 3 months (2 years & 9 months ahead of schedule) 3
Phase-II covers 124 kms. This also includes a high speed Metro connection from centre of the city to the new airport in 18 minutes. Phase-II works commenced in January 2006 and completed in October, 2010 – 5 months ahead of schedule. Phase-III will consist of about 104 km at a cost of US $ 8.6 billion. The first contract for Phase-III has since been awarded. 4 Delhi Metro Rail Corporation (DMRC)
Funding of the Metro –20% of the cost is borne by the Federal Government. –20% of the cost is borne by the State Government. –About 50 – 60% of the cost through JICA Loan. –5% of the cost by DMRC through Property Development. 5
2500 train trips with 200 train sets on 6 lines. Each train used to consist of 4 coaches. Trains progressively being lengthened to 6 coaches and finally to 8 coaches. Average daily ridership - About 16.5 lakh passengers with average lead of 14 kms. Frequency during peak hours – 2 m 30 sec. System fully Barrier Free for Physically challenged. DMRC has introduced feeder bus short loop services Punctuality measured with a least count of 60 Sec. and average punctuality percentage is above 99%. Operation Highlights 6
Fare : From Rs. 8/- (17 cents) to Rs. 30/- (65 cents) - fare structure lowest in the world except Kolkata. The system making operational profit from Day-1. Delhi Metro receives no subsidy from the two Governments. We are able to meet the operating and maintenance expenditure fully. In addition we are servicing and repaying the loans taken from JICA. 20% of DMRC’s revenue is from Non-operational sources – mainly real estate development and advertisements. Financial Success of Delhi Metro 7
Challenges in Implementation Delhi Metro Project is the biggest urban intervention since Independence. Project is to be executed in very difficult urban environment. Being in the capital city all actions under close scrutiny of VVIPs. Project approved on completion cost. The Project implementation period extremely compressed and strict completion targets. Metro being constructed to world class standards with frontline technologies.
Challenges The sensitivities of the city to be respected during construction – No hardship or inconvenience to the public – Calcutta Experience. Each day’s delay in completion of project costs DMRC Rs. 2.3 Cr (Rs. 1.4 Cr by way of escalation and Rs.90 lakh by loss of revenues).
Large scale land acquisition in the city Tree cutting permission - Substantial No. of trees are transplanted. - For every tree cut, compulsory afforestation of 10 trees is undertaken. Utility diversions for Telecom, Electrical, Sewerage & Water pipe lines Special permissions such as for Ridge (Reserve Forest) Land, from Archaeological Survey of India, National Monument Authority Constraints in Project Implementation
Work Culture & Organizational Values of DMRC 1.Punctuality. 2.Integrity – highest premium 3.Professional Competence. 4.Physical Fitness. 5.Quick Decision Making 6.High Discipline and loyalty to the Organization. 7.Prompt response to the needs of the Public and Contractors.
Dynamic Management Style Corporate Mission and Corporate Culture A slim but effective organization - No ineffective layers such as clerks, peons Reverse Time clocks. Democracy in management – Weekly HOD meetings and Monthly Dy. HOD meetings. Discourage paper oriented work – replies to outsiders within 10 days. Predominant use of information systems. High premium for integrity in the organisation
Dynamic Management Style Ample delegation of powers – accountability with delegation Redefined the role of Finance – Finance equally accountable with executive. Officers encouraged to take decisions on the spot. The fear of Audit and Vigilance not allowed to cramp the style. Leading from the front and not pushing from the rear. - Top Management readily available for decisions. Management based on trust
Tendering & Award of work General philosophy – success of the project depends upon success of the contractors. Tenders from Pre-qualified list of bidders A unique filtering criterion evolved for prequalification covering vital items of technical & financial capabilities of the tenderers Objective evaluation criteria based on ‘scoring system’ The tender conditions finalized keeping in view the JBIC Procurement guidelines, FIDIC document and Indian Contract Act. Full powers for dealing with the tenders within organization Tenders are decided fast – so that no lobbying is possible.
Monitoring during execution Contractors prepare detailed Base – line work schedule for execution including duration of activities and identification of critical activities/path Close monitoring of work schedule, mobilization of ‘Manpower’, ‘Machinery & Plant’ and ‘Materials’ Weakly meetings with Contractors for planning the work and solving their problems. Practical approach to solve the genuine problems of contractors. Failing contractors are enabled to perform by timely assistance. Streamlined prompt payment procedure and quick decision-making.
Monitoring during execution Stringent penalties for failures to deliver. Prompt resolution of claims. Round the clock supervision guaranteed Strict independent quality & safety audit. Monthly progress presentations by the contractors DMRC directly handles works pertaining to other Government and Civic Departments to speed up. Have been able to establish that we are different than the normal executing agencies and mean business.
Interface Management - “Access dates” and “Key dates” listed in contract document itself. The important items which require interface with other contractors are clearly identified and indicated in contracts. Other contractors with whom the contractor has to interface are also clearly defined.
Monitoring during Testing & Commissioning Each activity of testing identified and duration of all these activities pre-determined Trials conducted as per schedule pre-determined jointly by System Contracts Service trial schedules also laid out in advance Sufficient time provided before actual commissioning
Training and motivation of employees –A rigid screening process for inducting staff and officers. –Training and exposure in the appropriate areas. –Management objectives and philosophy clearly shared with executives and staff. –Chief Executive and Top Managers themselves set an examples. –Immediate appreciation and reward for good work done but no castigation for failures. –No witch hunting for genuine mistakes. Officers encouraged to take quick decisions. Tendency to push decisions to higher levels curbed.
Public relations initiative –Works planned and managed with the least inconvenience to the public. –Press regularly briefed on the progress and programmes. –Community interaction at difficult work sites. –Proper barricading and good house keeping. –Proper signages, security men to guide traffic. –Special measures taken to protect the environment. Control on noise levels and vibrations during work. Washing tyres of vehicles. Performance is our best publicity. Have been able to establish credibility with the public by delivery on time.
Benefits of Delhi Metro A study by CRRI has brought out benefits of Delhi Metro Phase-I and worked out EIRR = 19.96%. Thus the entire cost of Phase-I recovered by the city of Delhi in 5yrs by 2010.