Ping Hu Oil and Gas Development Project
sector: Energy | country: China, People’s Republic of
A properly administered bidding process, supported by detailed technical design and bidspecifications, can obtain advantageous bid offers.
Adequate planning and preparation are key elements to the smooth and timely execution of a project. Timely availability of the required funds is also important (availability of funds though was not an issue in this project).
The issue of detailed information regarding the onshore gas transmission and distribution component of the project (Part B), for which loan proceeds were not utilized, could have been avoided with a more binding provision in the Loan Agreement and closer monitoring during project implementation.
The successful implementation of projects with huge investment costs and associatedrisks requires a strong commitment and preparedness by the project proponents, as well as theinvolvement of experienced and well-trained project implementation staff. The expertise ofcompetent international consultants ensured accurate evaluation of the risks involved, adoptionof appropriate technical design and reasonable cost estimates, and observance of theapplicable safety and operating standards.