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Development Projects
in Sri Lanka: a
literature Review
Development Issues in Development
This is an essay on literature review for development
projects in Sri Lanka to fulfill the partial requirement
of the course of Master of Development Studies
conducted by the faculty of Graduate Studies of the
University of Colombo, Sri Lanka.
Sivananthan Pathmanathan SID 2011/MDS/57
5/17/2011
Sivananthan Pathmanathan MDS 6101
Page 2 of 25
Acknowledgement
This is a great opportunity and pleasure to me to remember the people who
have tremendously contributed to the success of my work by numerous ways.
First of all, I sincerely thank Rev. Dr. W. Wimalaratne, the course coordinator
of the programme of Master of Development Studies and the academic staff of
the faculty of Graduate Studies in the University of Colombo. It is also my
bounded duty to thank my mother-in-law Mrs. Puspakanthi Paramanatham,
who encourages me to do this work. Finally, I would like to thank my parents,
wife, and teachers who made me as a man of writing this essay on literature
review.
Sivananthan Pathmanathan MDS 6101
Page 3 of 25
Abstract
Development project is the best instrument to meet the people‘s needs and their
desires within the limited resources and unexpected constraints, especially, in
developing countries where there are endless requirements to be satisfied by
inadequate resources on a priority basis. Thus, people are the central point and their
aspiration and degree of involvement are the deciding factors for sustainable
development by those projects. As development projects address the complex issues
related to poverty, livelihood and living standard of people and their betterment, it is
hard to measure the impact of it even after many years of project completion, in
which, managing development projects is crucial and it has many implementing
issues. Weak institutional arrangements and poor technical support are the major
constraints in coordinating and monitoring development projects in Sri Lanka, too,
like other countries in the south sphere of the world. In Sri Lanka, most of the projects
are infrastructure development projects of highways, port and aviation in the
transportation sector and funded by donors either by grants or soft loans. Japan, China
and India are the main donor countries while UNDP, USAID, JAICA, KOICA and
GIZ are some of the international organisations funding to Sri Lanka for its
development. In literature, success of a project is heavily dependant on the degree
of project management and the capability of managers for effective planning,
scheduling and controlling project and managing its potential issues that caused
to delays in critical activities. Therefore, it is a complex task to meet the
objectives of the project by assuring the deliverables within the budget and time
frame. If the project delayed and incurred over cost then the project called fail
due to cost overrun by time overrun. Many IT related projects have failed
worldwide but, in Sri Lanka, many development projects have failed to meet
their objectives even after exceeding the initial cost due to time delays. In
conclusion, the implication of development projects is the key driving force for
the growth of a country and it is heavily dependent on the success of projects.
Sivananthan Pathmanathan MDS 6101
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Table of Contents
1. Introduction..................................................................................................... 05
2. Development Projects......................................................................................06
3. Development Projects in Sri Lanka..................................................................06
3.1. Donor Interests in Development Projects............................................09
3.2. Project Implementation Issues............................................................10
3.2.1. Project Formulation Issues.............................................10
3.2.2. Project Coordination Issues............................................11
3.2.3. Project Monitoring and Evaluation Issues....................11
4. Role of Project Managers................................................................................12
5. Project Management in Development Projects...............................................13
6. Managing Development Projects in the Context of Sri Lanka.........................14
7. Development Project Failures.........................................................................15
8. Conclusion.......................................................................................................16
9. Reference.........................................................................................................17
10. Appendix.........................................................................................................19
Sivananthan Pathmanathan MDS 6101
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Acronym
ADB – Asian Development Bank
BBC – British Broadcasting Corporation
DOFABM-Department of Foreign Aid and Budget Monitoring
GTZ – German Technical Corporation
ICRC- International Committee of the Red Cross
INGOs - International Non-governmental Organisations
JICA- Japan Internal Cooperation Agency
JFPR - Japan Fund for Poverty Reduction
KKS - Kankesenthurai
KOICA- Korean International Cooperation Agency
NGOs - Non-governmental Organisations
OCH - Outer Circular Highway
ODA - Official Department Assistance
PMBOK - Project Management Body of Knowledge
UNDP - United Nations Development Programme
UNICEF- United Nations Children's Fund
USAID – United States Agency for International Development
Sivananthan Pathmanathan MDS 6101
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Development Projects in Sri Lanka: a Literature Review
Introduction
The concept of development becomes broader than the ideology formulated in early
days and it is emphasizing the dynamic changes in societies in a holistic way.
Although, different schools have various thoughts about development, development
has transformed from the economic growth to social improvements and human well-
being with the participation of people. People‘s involvement and their degree of
influence in development initiatives is also a shift from the act of consuming
development outcomes to engage in the process of producing those outputs (Arnstein
1969). Therefore, citizens participation is the key instrument in the development
project, in which, people are centred and their needs and expectations are given more
focus in an objective manner rather than their subjective role in achieving those
targets and goals in the aspect of development. Therefore, people are the heart of the
development and they are the owners of development projects rather than the project
proponents. This concept was first practiced in British colonies in 1930s to combine
the local resources in order to gain benefits at community level, and then it has
widely spread in industrial nations and developing countries in 1960 (MacIntyre
2003). Therefore, development projects, especially aiming at the people‘s
participation to find out their own solutions to overcome resource limitations and
constraints became popular for sustainable development.
For sustainable development, people‘s involvement and their empowerment in taking
ownership is vital for lasting the effect of development benefits to meet their goals,
but the level of participation and the degree of involvement is crucial and that is the
determining factor of the sustainability. Thus, this paper will examine the
development projects in its different dimension by reviewing the past literature of it in
Sri Lanka with the scope of identifying project implementing issues in the aspect of
the role of project managers and their responsibilities for the success or failure of the
project.
Sivananthan Pathmanathan MDS 6101
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2. Development Projects
Development projects are far different than the commercial or industrial projects.
Although they have some hard components like construction and installation of
sophisticated equipment like industrial projects, it is mostly related to providing
services or facilities to citizens in terms of social and human development without
business focus. Most of the development projects address the issues related to poverty
alleviation, improvement of the living standard of people and protecting human rights
in developing countries with the assistance of local and international donors, but the
jeopardy of it is measuring the outcomes of those projects due to the intangibility of
project/programme impacts associate with people and their betterment (Ahsan and
Gunawan 2010). Therefore, development projects are quite more often different than
other projects and it is hard to manage and evaluate the outcomes, especially in the
context of developing countries where there is lack of institutional and human
resource capacity to manage projects in public sectors incorporate with the existing
Project Management Body of Knowledge (PMBOK).
3. Development Projects in Sri Lanka
Although Sri Lanka does not have a long history in executing development projects, it
is used for that after the independence of the country in 1948 by stepping up in
Galloya project initiated by the first Premier of the country late Mr. D. S. Senenayake.
However, the implementation of ―Mahawali‖ project created the path to Sri Lanka to
vastly using development projects as a key instrument for rapid development of the
country in parallel to many other developing countries in the South Asian region.
With the recovery and rehabilitation programmes and projects to the drastic damages
caused by the Tsunami tidal ways in Indian Ocean on 26th
of December, 2004, Sri
Lanka have had numerous number of such development projects executed by various
donor agencies, and, International Non-governmental Organisations (INGOs) and
local Non-governmental Organisations (NGOs). Despite of these huge donor
contributions, significant number of government projects also was in track with the
utilization of domestic funds in Sri Lanka. This was the peak period of the
Sivananthan Pathmanathan MDS 6101
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development arena of Sri Lanka in the aspect of running many projects Island wide in
line with other long-term development projects with the scope of meeting the
betterment of people rather than commonly aiming the economic growth of the
country.
At present, there are many development projects being implemented by the direct
execution by the government and by donor agencies such as UNDP, USAID, GTZ,
JAICA, KOICA, UNICEF, ICRC etc., after the end of the civil war lasted for more
than 30 years. This war caused unevaluated damages to the country in both human
capital and national resources. As the result of this, emerging needs have been arisen
in development and for that many such projects some are more identified and
pipelined again after the Tsunami recovery period started in 2005. Considering some
of these projects, it is worthwhile here for understand the value of development
projects and their contribution to the growth of a country, especially a third world
country like Sri Lanka.
Grater Colombo Urban Transport Development project and the Vavuniya and
Kilinochchi Transmission line project are the two major development projects funded
LKR 44 billion (33 billion Yen) by the Japanese government through JAICA. The
target of the first project is to construct 8.9 km length of road section from Kaduwela
to Kadawatha of the Outer Circular Highway (OCH) with the aim of easing the traffic
congestion in the Colombo metropolitan region getting access to southern expressway
(Colombo - Katunayake) and connect other national roads with Colombo city while
the second project scope is to provide reliable, adequate and efficient electricity to the
people in Northern Province by reconstructing 132 KV power transmission network
lines from Vavuniya to Kilinochchi with the construction of a grid sub-station at
Kilinochchi, (Media centre, 24.03.2011). These two projects are tremendously
supporting to the improvement of economy and the well being of the public
incorporate with the government policy that provides infrastructure facilities to
exercise economic activities in the sake of production for people‘s betterment.
According to the Daily News of (07.04.2011) to construct 50,000 houses for war
victims in North is one of the mega projects initiated by the pledge of Indian
Sivananthan Pathmanathan MDS 6101
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government with the aim of resetting the internally displaced people in their own
places. Apart from that, the development of the regional port of Kankesenthurai
(KKS) with the support of US $ 40 million grant of Indian government under its
assistance for Northern and Eastern provinces of Sri Lanka is an another mega
project. It will support the local farmers in Jaffna to market their agro-products to
other parts of the country by cargo-shipping to Trincomalee, Hambantota, Galle and
Colombo while importing fertilizer, cement and non-cultivated food items such as
dhal, potatoes, species, etc. in cheaper rate from Indian markets (Tuticorni and
Channai), (Media Centre, 16.03.2011). In the meantime, this project also will
contribute to the regaining of the KKS cement factory in the scope of providing
transport facilities to its production to other part of the country. Moreover, in the
context of security of the country, Navy also can use this port to carter their vessels
which are operating in the Pork Sea near to this port as a base for Northern peninsula.
Therefore, this is a multi-purpose project in the aspect of economy, security and social
development of the people who lives in the Northern part of the country.
When considering the government policy that provides infrastructure facilities for
development, priority given to transportation is high not only in road and highway
network improvements but also in port and aviation shipping. The aim of this policy
is to invite foreign investors by giving fast market access to their products while
bearing low transportation cost and cheaper labour wages. In this circumstance, built
of the second international airport in Hambantota district with the support of US $ 200
million (£ 133 million) Chinse loan and boost of the railway network in south of the
Island with Chinse aid of US $ 100 million are surely contributed to major
improvements in the transport network in order to enable the country to engage in
international trades more than the present size of it. Further, the location of the second
international seaport of Sri Lanka at Magampura in Hambantota district will
strengthen the function of these two projects. The Indian credit loan of US $ 70 Mn to
upgrade the southern railway lines will also reinforce the railway network in order to
integrate the strength of transportation of the country, (BBC, 03.10.2010). In contrast,
though donor funded projects have the basic speciality to meet the needs of recipient
countries, it is always accompany with some donor interests.
Sivananthan Pathmanathan MDS 6101
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3.1 Donor Interests in Development Projects
Though the development projects are tried to address the needs of the country and the
aspiration of the people, the aim of the donors or donor countries is not always
genuine because of their pre-conditions for assistance both in their grants and loans.
The conditions may have some hidden agendas which are always favour to them at
least from appointing a consultant to purchase equipment and technical support from
their countries though they might be available in the recipient countries. For example,
in the project of construction of the second international seaport in South, the local
contract companies and workers have felt that they were neglected from the
construction work of the new project because, one of the Chinese companies took
over the contract. The main criticism is not about that, but about the interest rate of
the loan provided by China to that project, which is higher than the other donors like
Japan or Asian Development Bank (ADB) even Chine‘s projects are quick with few
preliminary studies when comparing with other donor projects, (BBC, 03.10.2010). In
addition to this, the major funding agency of this project is the lending arm of China,
that is, Expert-Import Bank of China and their purpose is to undermine the Indian
influence in Sri Lanka. Similarly, the Indian credit loan of US $ 70 million to upgrade
the Southern and Northern railway lines and it‘s some other mega projects in Sri
Lanka also a counter announcement to react the China‘s rival in its neighbouring
country with having a fear that this is a threat to it for its influence in the region,
(BBC, 03.10.2010). Hence, this kind of pre-determined assistance will lead unstable
in Sri Lanka by creating political tension among the regional countries. Therefore,
donors always have some political or socio-economic interests that favour to them
while they are pumping money to projects in developing countries. Thus,
development projects have critical and sensitive issues with their desired outcomes.
As the main focus of this essay is to review the project implementation issues, the
next topic will only analyse the critical issues of those projects in the past experience
of Sri Lanka.
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3.2. Project Implementation Issues
In general, implementing a project is given more attention than other phases of a
project, which are planning, formulation, monitoring and evaluation. According to a
third party evaluation from June, 2008 to March, 2009 undertaken by the external
advisory committee on Official Department Assistance (ODA) for evaluate the
Japan‘s assistance in respond to Tsunami disaster, to promote the exact preparation of
projects in non-project grant aid is the design-build system and it is heavily depend on
the selection of contractors for construction but, in Sri Lanka, the understanding of
this design-build system by the local contractors is very poor even though the Japan‘s
post-Tsunami assistance to Sri Lanka was evaluated as manageable and implemented
properly, (ODA report, 2009). However, when comparing with other recipient
countries such as Indonesia and Maldives, Sri Lankan project performance was
relatively high in quality and effectiveness along with good degree of necessity and
usefulness. The following topics will somehow to review those issues in deep.
3.2.1. Project Formulation Issues
The ODA report (2009) emphasizes that the assistance of Japan met the targets by
appropriate operations in general but, the function of project formulation should be
strengthen in addition to expose to the design-build system in Sri Lanka.
Subsequently, the ODA report (2009) reviles that two of the Japan Fund for Poverty
Reduction (JFPR) projects through ADB in Sri Lanka was advanced more than those
in Indonesia by exhibiting high relevance and positive effectiveness and impact,
though there was a concern about the sustainability. However, the report points out
that the local bodies would have been taken leadership in the process of project
formulation by the activity of identifying needs, which led to the projects delay, even
there was an urgent rehabilitative support required for fast actions. On the other hand,
in the process of implementing projects, awareness of projects did not correlated with
the effectiveness of those projects and low self-containment of projects is a key factor
for that in non-project grant aids, (ODA, 2009). This indicates that project
formulation is also somewhat problematic in Sri Lanka.
Sivananthan Pathmanathan MDS 6101
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3.2.2. Project Coordination Issues
The findings of the ODA report (2009) reflect the weakness of project management in
the aspect of project coordination. Some disaster rehabilitation projects in Sri Lanka
are not properly coordinated with other donor projects or rural infrastructure
programme for poverty reduction. As a result of this, they lost their success due to
poor project management. Therefore, the success of a project is vital and it is closely
depend on the responsibilities of project managers.
Gunatilaka (1999) analyses the project coordination in different angle in his studies
that the government is executing projects through their line agencies in Sri Lanka, too
and the project implementation capacity of the government sector has been weakened
through the fragmentation1
of the public institutional arrangements. Thus, this
fragmentation causes for lack of synergies within the projects which are covered large
area and required number of agencies for consultation and coordination.
Having central and provincial institutional arrangement is a constraint to projects to
get such consultation and coordination from different stakeholders when the ruling
political parties are different with having conflict political agendas in those places.
This issue has become after the devolution of power in Sri Lanka since late 1980s,
(Gunatilake, 1999). Therefore, the project coordination can have complex issues in
different paradigm.
3.2.3. Project Monitoring and Evaluation Issues
In Integrated Rural Development Projects (IRDPs) in Sri Lanka, the project outcomes
have given disappointments to the managers and the quality control was the serious
constraint that due to lack of technical capacity to provide high level of supervision
for monitoring. In contrast, Community projects funded by ―Janasaviya‖ Trust Fund
and implemented by NGOs were successful by the systematic implementing
1
―Fragmentation has occurred because of the proliferation of ministries, departments, public
corporations and statutory bodies‖, (Gunatilake, 1999).
Sivananthan Pathmanathan MDS 6101
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procedures and adopted the appraisal and monitoring procedures by the engineers at
various stages of implementation, (Gunatilake, 1999). Hence, these two contradicted
examples further indicate that the implementation of a project is heavily depending on
the project manager‘s role in their responsibilities to lead the project as a success.
Thus, the next topic will tried to extract the role of project managers in their
managerial responsibilities.
4. Role of Project Managers
Before going to review the role of project managers, it is useful to define the success
and failure of the projects in different viewpoints. In general, projects seem to be
failure when it exceeds its due date (time overrun) and draw more money to complete
the tasks (cost overrun) (NetoAlvarez 2003). For example, the critical success factor
is completing the activities in time in construction projects while deliver the product
within the cost is in product development projects. But, today the situation is
different and it is very difficult to determine the project status whether it is achieved
the target or not due to the complexity associate with its management. Belassi and
Tukel (1996) point out that even a delayed project meets its goal with the extra-cost
recovery from project managers as penalty for delays. If it is in this case, the project is
successful in the point of view of organisation in terms of meeting the clients‘
requirement, but it is a failure one for project manager and his or her team members
due to not meeting the targets in time. On the other hand, a project could satisfy the
customers by proving product outputs within the time and cost, although not giving
happy to top-level management without meeting their expected specifications (Balassi
and Tukel 1996). Diallo and Thuillier (2005) argue that management success does not
mean project success because the success directly depends on the act that who is
doing project evaluation; is it project manager or project beneficiaries. Therefore,
defining the project failure is somewhat ambiguity and it depends on the perception of
people. However, many studies identify the success factors in the connection of
project performance and I believe it is heavily depending on the combination of many
of those factors.
Sivananthan Pathmanathan MDS 6101
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Belassi and Tukel (1996) emphasizes that combination of lack of top level
management support and inadequate competencies of project managers will lead to
inefficiency in their performance of project activities, by which, project failures are
often take place due to weak organisational communication and institutional
coordination, in particular, it is visible in matrix organisation rather than flat one.
Project manager‘s competency is crucial for effective planning, scheduling and
controlling project and managing its potential issues caused to delays in critical
activities. It is also vital to communicate those issues and solutions with primary
stakeholders. Thus, the role of project managers and their managerial capabilities and
communication skills are important to lead the personnel and resources towards the
direction of project vision and success.
5. Project Management in Development Projects
Ahsan and Gunawan (2010) emphasizes that as many stakeholders (donor agencies,
host country, beneficiaries and multi contractors and project coordination units) are
involving in the process of project management, it is a complex task for project
managers to control the schedules of time, cost and performance within the scope of
desired deliverables to meet the specific project goals and objectives by breakdown
the task activities among the diverse stakeholders and dysfunctional institutions and
supervise the milestones of those performance. Diallo and Thuillier (2005) identify
that trust, communication and team cohesion are some of the key success factors
related to project managers in development projects. Therefore, project managers‘
role is the most deciding factor for project success or failures in managing projects, in
particular, to the development projects in the context of third world countries.
Balassi and Tukel (1996) identify some critical success factors of project performance
and categorise them under four areas, which are related to project, project managers
and their team members, organisation and external environment. As factors related
to project managers is one of their focus areas, and they break down it further as
ability to delegate authority, ability to trade-off, ability to coordinate, perception of
Sivananthan Pathmanathan MDS 6101
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project manager’s role and responsibilities, and, their competence and commitment,
it is rationale to consider this area and related factors to be examined in this study. In
literature, several other researchers also consider similar identities related to project
management as success or failure factors in their studies.
6. Managing Development Projects in the Context of Sri Lanka
In Sri Lanka, the institutional capacity and human resources capabilities of managing
development projects are not satisfactory. According to Koria (2009), inadequate field
capability and capacity including weak planning and insufficient coordination of
resources are major reasons for projects which are unable to meet the ownership and
participation of locals in project implementation in post-tsunami recovery
programmes in Sri Lanka. Yet, he points out that most of the organisations did not
have the appropriate technical and managerial expertise and knowledge to undertake
the reconstruction projects due to not having inherent competence to manage
extensive portfolios of programmes and projects and it is noticeable in his point of
view that the organisations are searching resources to projects while they run those
projects and government also struggle to provide full technical support and
coordination to many development agencies of post-tsunami programmes in Sri
Lanka. Although, over 200 recovery projects are running with the cost ranged from a
few hundred thousand to 10 million in different sectors such as rebuilding of homes,
hospitals, schools and water and sanitation, there was not a single programme or
project office in Sri Lanka, but most of the national organisations which are the
project implementers, have their own project staff (Koria 2009). Therefore, it is
understood that the institutional capacity and resources are not strong enough to cater
the emergence needs of effective project management in public sector development in
Sri Lanka.
Although there are not many specific researches in this field in Sri Lanka, the study of
Koria (2009) identifies several potential project management issues which are
worthwhile to mention here to understand the urgent needs of further studies. Koria
(2009) identifies that projects are handled by line managers instead of formally
Sivananthan Pathmanathan MDS 6101
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certified project managers or professionals and therefore, the common project
protocols or industry standards of project management and planning tools are not
applied, in which, time is not considered as a cost and monitoring is not systematic to
meet clear goals. The severe criticism on this field in Sri Lanka is about the
management role which is unclear by overlapping the staff, responsibilities and tasks
between the programme and project management that will create vacuum in the
programme management (Koria 2009). Therefore, examination of the role of project
managers is useful to professionals, government entities in this field and countries
having the similar issues in this area. Thus, my focus is to analyse the gap that how
project managers‘ part without deliberately contribute to failures in managing
development projects.
7. Development Project Failures
Projects are very effective tool to achieve desired goals and objectives in an
organisational view and for that better project management is identified as a
prerequisite to plan, design, implement and control targets in its management. Despite
of this general identity about the purpose of project management, many projects are
out of track and fail to meet their targets for numerous reasons. A survey conducted
by Standish Group (2002) reveals that the failure rate of Information Technology
related projects is 16% while costing to US $ 145 Billion damages to US companies
in 2001. On the other hand, in Sri Lanka, only handful number of development
projects (4.5%) meet their objectives within the allocated budget and time frame and
which are rated as highly successful projects according to the Department of Foreign
Aid and Budget Monitoring (DoFABM, 2010), Sri Lanka.
Although, many previous studies indirectly extracted the cause of project failures by
analysing the success factors associated with project performance, only few of them
have focussed on managerial skills and knowledge of project managers. Yet, there is
very less number of studies in project failures in Sri Lanka. Therefore, after this
literature review, the gap in the literature will be filled by studying the development
project failures in Sri Lanka in the perception of project managers and stakeholders.
Sivananthan Pathmanathan MDS 6101
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8. Conclusion
Development is a broader concept and it is not only mere economic growth but also
socio-economic and cultural improvements for the wellbeing of the people of a
country in a holistic way. People are the central part of development and their
participation and degree of involvement is crucial for sustainable development.
Development projects are far different than the business or industrial projects. It is
providing services or facilities to the people for their betterment in poverty reduction,
improve the living standards, protect the human rights and so on. The speciality of
this kind of projects is mostly executing by governments than private sector
organisations. In Sri Lanka, development projects are widely using for the growth of
the country in many sectors such as infrastructure, power, health, sanitation and
education. Provision of infrastructure facilities for economic exercise is given high
priority in the government policy of Sri Lanka. Many donor funded development
projects are running thereby with the scope of providing livelihoods in order to
improve the living standard of people for their betterment. Unfortunately, those
projects are facing implanting challenges due to weak institutional structure and poor
technical capacity in monitoring and coordinating process of them, effectively.
Accordingly, project management is vital for a project to meet its target within the
time frame and budget. As many stakeholders are involving in the implementation
process of a project and complex task of control the time, cost and constraints with the
scope of desired deliverables, project management is not an easy task but, it is very
important for the success of a project. When project exceed its planned time, that is,
the time overrun will causes delays in meeting its objective and urge extra cost for
price increase or inflation as cost overrun. Therefore, the time overrun of a project
will automatically lead to cost overrun and these two factors are the main causes for
project failures. Hence, plan, design, implement and control the targets of a project
are heavily depend on the managers‘ skills and ability to execute the project.
Otherwise, it is not possible to achieve the development of a country. In conclusion,
development project is the best instrument to drive the development of a country if the
country has proper institutional arrangement and technical capabilities with
professional project managers.
Sivananthan Pathmanathan MDS 6101
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9. Reference
Ahsan, K and Gunawan, I 2010, ‗Analysis of Cost and Schedule Performance of
International Development Projects‘, International Journal of Project Management,
vol.28, pp.68-78.
Arnstein, SR 1969, ‗Ladder of citizen Participation‘, Journal of American Institute of
Planners, vol.35, no. 4, pp. 216-224.
BBC news, 10.03.2010, viewed on 24.05.2011, http://news.bbc.co.uk/go/pr/fr-
/2/hi/south-asia/8560554.stm.
Belassi, W and Tukel, OI 1996, ‗A new framework for determining critical
success/failure factors in projects‘, International Journal of Project Management,
vol.14, no. 3, pp. 141-151.
Daily News, 07.04.2011, viewed on 23.05.2011, http://www.dailynews.lk
Department of Foreign Aid and Budget Monitoring 2010, ‗Electronic Project
Monitoring System (e-PMS)‘, viewed 25 May 2010,
http://pms.fabm.gov.lk/cp/index.asp.
Diallo, A and Thuillier, D 2005, ‗The success of international development projects,
trust and communication: an African perspective‘, International Journal of Project
Management, vol.23, pp.237-252.
Gunatilake, R 1999, ‗Rural Infrastructure Programmes for Poverty Reduction: Policy
Issues from the Sri Lankan example’, Institute of Policy studies, Colombo.
Koria, M 2009, ‗Managing for innovation in large and complex recovery
programmes: Tsunami lessons from Sri Lanka, International Journal of Project
Management, vol.27, pp.123-130.
MachIntyre, GA 2003, ‗The Third Option: Linking Top-Down and Bottom-up Efforts
in Community-based Development‘, Humanomics, vol.19, no. 1 /2, pp.3-11.
Sivananthan Pathmanathan MDS 6101
Page 19 of 25
Media Centre for National Development of Sri Lanka: Ministry of Mass media and
Information 24.03.24 & 16.
NetoAlvarez, SJ 2003, ‗Project Management Failure: Main Causes‘, Graduate
research report, Bowie State University, Maryland.
Standish Group 2002, ‗The Standish Group Report‘, viewed 26 May 2010,
http://www.scs.carleton.ca/~beau/PM/Standish-Report.html.
Thirty party evaluation, 2009, ‗Evaluation of Japan’s Assistance in response to
Tsunami Disaster’, ODA report, pp.1-27.
Sivananthan Pathmanathan MDS 6101
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10. Appendix
MDGs IN SRI LANKA
Goal-Specific Ongoing Projects
Project Ministry
MDG 1
Gamidiriya Rural Livelihood
Development
Janapubudu , Gampubudu Samurdhi & Poverty Alleviation
Dahasak Maha Wev Agrarian Services and Development
of Farmer Community
Gama Neguma Rural Livelihood Development
Kiri Gammana Estate Infrastructure & Livestock
Development
Kantha Diriya Textile Development
Osu Gammana Indigenous Medicine
Jana Sevana Housing and Construction Industry
Maga Neguma Road Development
DCB, Pubudamu Wellassa, Plan Implementation
Rajarata Navodaya Regional Development
Senkadagala Navodaya Rural Economic Development
Micro Finance Programmes Finance and Planning
Jathika Saviya Nation Building
Townships Development Urban Development and Water
Supply Provincial Council &
Local Government
Secondary Education Education
Modernization Project
Nutritional Food, Uniforms —— do ——
Highways Southern Expressway Highways
Colombo-Katunayake Expressway —— do ——
Outer Circular Highway —— do ——
Ratnapura-Balangoda-Bandarawela Road —— do ——
Reconstruction of 37 Bridges —— do ——
Batticaloa-Trincomalee Road
& Kinniya Bridge Project —— do ——
Sivananthan Pathmanathan MDS 6101
Page 21 of 25
Road Network Improvement Project —— do ——
Tsunami Affected Area Rebuilding Project ——do ——
Reconstruction of Roads & Bridges in
North East Province —— do ——
Construction of Manampitiya Bridge —— do ——
Baseline Road Phase III —— do ——
National Highway Sector Project —— do ——
Maintenance of Roads & Bridges —— do ——
Power and Energy Cluster
Norochcholai Coal Power Plant Power & Energy
Upper Kotmale Hydro Power Project —— do ——
Renewable Energy for Rural Economic Development
Power Sector Development Programme —— do ——
Vavunia – Kilinochchi Transmission Line Project —— do ——
Colombo City Electricity Distribution Development Project —— do ——
Greater Colombo Transmission Development Project —— do ——
Urban Development and Water Supply Cluster -
Kalu Ganga Water Supply Urban Development &
Water Supply
Kandy Water Supply —— do ——
Batticaloa, Polonnaruwa, Trincomalee & Hambantota
Water Supply —— do ——
Small Scale Water Supply Schemes Rehabilitation &
Upgrading in Provinces —— do ——
Nuwara Eliya Water Supply —— do ——
Kurunegala Water Supply —— do ——
Greater Colombo Sewerage System —— do ——
Maharagama Town Centre Development —— do ——
Housing for 65,000 Slum Dwellers —— do ——
Sivananthan Pathmanathan MDS 6101
Page 22 of 25
Housing Cluster
Public Servants Housing at Jaltara & Geswatta Housing & Construction
Cluster Housing & Settlement Improvement —— do ——
Railways Cluster
New Carriages Sri Lanka
Railways
Double Line Colombo- Matara —— do ——
Purchase of New DMUU —— do ——
Ratmalana – Airport ( Modernized Rail Service) —— do ——
Matara – Kataragama New Rail Road New Railroad
Development
Agriculture Cluster
Develop Horana, Sita Eliya, Agricultural Development
Girandurukotte and Labuduwa Seed Farms
and Maha-Illuppallama Field Crop Research Institute
Promote Packaging Methods & Transportation —— do ——
Establishment of Dedicated Agricultural Product Zones — do ——
Implementation of National Organic Standards —— do ——
Udawalawe Left Bank Agriculture, Irrigation
and Mahaweli
Development
Minor Tank Rehabilitation by Agrarian Services and
Farmer Organization Development of Farmer
Communities
Agro Wells —— do ——
Deduru Oya Reservior Irrigation
Menik Ganga Reservoir —— do ——
Rambukkan Oya Reservoir —— do ——
Plantation Development Project Plantation Industries
Coconut Sector Development Programme Coconut Development
Sivananthan Pathmanathan MDS 6101
Page 23 of 25
Fisheries Cluster
Post-Tsunami Coastal Resources Rehabilitation Fisheries and Aquatic
Resources
Fisheries Management Project —— do ——
Establish St. John‘s Fish Market Complex at Peliyagoda —— do ——
Industries Cluster
Industrial Estates Industrial Development
Gamata Karmantha —— do ——
Textile and Apparel College Textile Industry
Development
Services Cluster
Dahas Diriya Programme Enterprise Development
and Investment
Promotion
Science, Technology, Research and Development
Agro Food Project —— do ——
IT Park – Malabe Urban Development &
Water Supply
Social Protection Cluster
Senehasa Programme , Child Development
and Women‘s
Empowerment
Thriposha Programme Health Care and Nutrition
Flood and Drought Relief Programme Disaster Relief Services
Social security for Disabled Soldiers —— do —
Rural Infrastructure Cluster
Development Renewable Energy and Rural Economic Power and
Development (World Bank) Energy
Puttlam Housing Project (for IDPs) Resettlement
Poverty Alleviation Programme based on the Agriculture
Construction of Agro-Wells
Pro Poor Rural Development Project – Finance and
Planning
SIRUP III (JBIC)
Sivananthan Pathmanathan MDS 6101
Page 24 of 25
Regional Development Cluster
Ruhunu Udawa Pilot Project Regional
Development
-do-
Infrastructure Development
Roads & Bridges Cluster Highways
Southern Transport Development Project Highways
(Supplementary Loan)
Construction of Flyovers Nugegoda Junction & -do-
Roads Infrastructure Elements
Construction of a Grade Separated Intersection on
Sri Jayawardenpura – Kollupitiya –do-
Road and Nawala - Rajagiriya Road Junction at Welikada
Rehabilitation of CD class roads in North and East Nation Building and
Development
Construction of Mahanama Bridge
Highways
Reconstruction of Mannar Bridge & Causeway -do-
Electricity Cluster
Trincomalee Coal Power Plant Power and Energy
Bradlands Power Plant –do-
Moragolla Hydro Power Project –do-
Kerawalapitiya Kotugoda Transmission Line –do-
Killinochchi Chunakum Transmission Project -do-
New Galle Transmission Development -do-
Trincomalee Veyangoda Transmission Line -do-
Eastern Power Transmission Project -do-
Combined Cycle Power Plant at Kerawalapitiya -do-
Augmentation for Grid Sub-stations -do-
Sivananthan Pathmanathan MDS 6101
Page 25 of 25
Production, Services and Environment
Agriculture Cluster
Agri Business Development Project
Agricultural Development
Moragahakanda and Kaluganga Reservoirs
Development Project Agriculture, Irrigation and
Mahaweli
Construction of Fertilizer Storage Areas Agrarian Services and
Development
in Agrarian Centres
Strengthening Small Farmer —— do ——
Development Programme
Assistant of Outdoor Paddy Storage Bins —— do ——
Tharuna Govi Aruna Programme —— do ——
Uma Oya Diversion Project Irrigation
Urawa Diversion Project —— do ——
Yan Oya Project —— do ——
Smallholder Out Growers Estate Development
Programme Plantation
Industries
Fisheries Cluster
Dickowita Harbour Ports and Aviation
Tsunami Affected Areas Rehabilitation Project
Industries Promotion Cluster
SME Sector Development Programme II Enterprise Development
and
Investment
Entrepreneur Development Programme -do-
National SME Data Base Development -do-

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Sivananthan Pathmanathan Assignment 1 for MDS

  • 1. Development Projects in Sri Lanka: a literature Review Development Issues in Development This is an essay on literature review for development projects in Sri Lanka to fulfill the partial requirement of the course of Master of Development Studies conducted by the faculty of Graduate Studies of the University of Colombo, Sri Lanka. Sivananthan Pathmanathan SID 2011/MDS/57 5/17/2011
  • 2. Sivananthan Pathmanathan MDS 6101 Page 2 of 25 Acknowledgement This is a great opportunity and pleasure to me to remember the people who have tremendously contributed to the success of my work by numerous ways. First of all, I sincerely thank Rev. Dr. W. Wimalaratne, the course coordinator of the programme of Master of Development Studies and the academic staff of the faculty of Graduate Studies in the University of Colombo. It is also my bounded duty to thank my mother-in-law Mrs. Puspakanthi Paramanatham, who encourages me to do this work. Finally, I would like to thank my parents, wife, and teachers who made me as a man of writing this essay on literature review.
  • 3. Sivananthan Pathmanathan MDS 6101 Page 3 of 25 Abstract Development project is the best instrument to meet the people‘s needs and their desires within the limited resources and unexpected constraints, especially, in developing countries where there are endless requirements to be satisfied by inadequate resources on a priority basis. Thus, people are the central point and their aspiration and degree of involvement are the deciding factors for sustainable development by those projects. As development projects address the complex issues related to poverty, livelihood and living standard of people and their betterment, it is hard to measure the impact of it even after many years of project completion, in which, managing development projects is crucial and it has many implementing issues. Weak institutional arrangements and poor technical support are the major constraints in coordinating and monitoring development projects in Sri Lanka, too, like other countries in the south sphere of the world. In Sri Lanka, most of the projects are infrastructure development projects of highways, port and aviation in the transportation sector and funded by donors either by grants or soft loans. Japan, China and India are the main donor countries while UNDP, USAID, JAICA, KOICA and GIZ are some of the international organisations funding to Sri Lanka for its development. In literature, success of a project is heavily dependant on the degree of project management and the capability of managers for effective planning, scheduling and controlling project and managing its potential issues that caused to delays in critical activities. Therefore, it is a complex task to meet the objectives of the project by assuring the deliverables within the budget and time frame. If the project delayed and incurred over cost then the project called fail due to cost overrun by time overrun. Many IT related projects have failed worldwide but, in Sri Lanka, many development projects have failed to meet their objectives even after exceeding the initial cost due to time delays. In conclusion, the implication of development projects is the key driving force for the growth of a country and it is heavily dependent on the success of projects.
  • 4. Sivananthan Pathmanathan MDS 6101 Page 4 of 25 Table of Contents 1. Introduction..................................................................................................... 05 2. Development Projects......................................................................................06 3. Development Projects in Sri Lanka..................................................................06 3.1. Donor Interests in Development Projects............................................09 3.2. Project Implementation Issues............................................................10 3.2.1. Project Formulation Issues.............................................10 3.2.2. Project Coordination Issues............................................11 3.2.3. Project Monitoring and Evaluation Issues....................11 4. Role of Project Managers................................................................................12 5. Project Management in Development Projects...............................................13 6. Managing Development Projects in the Context of Sri Lanka.........................14 7. Development Project Failures.........................................................................15 8. Conclusion.......................................................................................................16 9. Reference.........................................................................................................17 10. Appendix.........................................................................................................19
  • 5. Sivananthan Pathmanathan MDS 6101 Page 5 of 25 Acronym ADB – Asian Development Bank BBC – British Broadcasting Corporation DOFABM-Department of Foreign Aid and Budget Monitoring GTZ – German Technical Corporation ICRC- International Committee of the Red Cross INGOs - International Non-governmental Organisations JICA- Japan Internal Cooperation Agency JFPR - Japan Fund for Poverty Reduction KKS - Kankesenthurai KOICA- Korean International Cooperation Agency NGOs - Non-governmental Organisations OCH - Outer Circular Highway ODA - Official Department Assistance PMBOK - Project Management Body of Knowledge UNDP - United Nations Development Programme UNICEF- United Nations Children's Fund USAID – United States Agency for International Development
  • 6. Sivananthan Pathmanathan MDS 6101 Page 6 of 25 Development Projects in Sri Lanka: a Literature Review Introduction The concept of development becomes broader than the ideology formulated in early days and it is emphasizing the dynamic changes in societies in a holistic way. Although, different schools have various thoughts about development, development has transformed from the economic growth to social improvements and human well- being with the participation of people. People‘s involvement and their degree of influence in development initiatives is also a shift from the act of consuming development outcomes to engage in the process of producing those outputs (Arnstein 1969). Therefore, citizens participation is the key instrument in the development project, in which, people are centred and their needs and expectations are given more focus in an objective manner rather than their subjective role in achieving those targets and goals in the aspect of development. Therefore, people are the heart of the development and they are the owners of development projects rather than the project proponents. This concept was first practiced in British colonies in 1930s to combine the local resources in order to gain benefits at community level, and then it has widely spread in industrial nations and developing countries in 1960 (MacIntyre 2003). Therefore, development projects, especially aiming at the people‘s participation to find out their own solutions to overcome resource limitations and constraints became popular for sustainable development. For sustainable development, people‘s involvement and their empowerment in taking ownership is vital for lasting the effect of development benefits to meet their goals, but the level of participation and the degree of involvement is crucial and that is the determining factor of the sustainability. Thus, this paper will examine the development projects in its different dimension by reviewing the past literature of it in Sri Lanka with the scope of identifying project implementing issues in the aspect of the role of project managers and their responsibilities for the success or failure of the project.
  • 7. Sivananthan Pathmanathan MDS 6101 Page 7 of 25 2. Development Projects Development projects are far different than the commercial or industrial projects. Although they have some hard components like construction and installation of sophisticated equipment like industrial projects, it is mostly related to providing services or facilities to citizens in terms of social and human development without business focus. Most of the development projects address the issues related to poverty alleviation, improvement of the living standard of people and protecting human rights in developing countries with the assistance of local and international donors, but the jeopardy of it is measuring the outcomes of those projects due to the intangibility of project/programme impacts associate with people and their betterment (Ahsan and Gunawan 2010). Therefore, development projects are quite more often different than other projects and it is hard to manage and evaluate the outcomes, especially in the context of developing countries where there is lack of institutional and human resource capacity to manage projects in public sectors incorporate with the existing Project Management Body of Knowledge (PMBOK). 3. Development Projects in Sri Lanka Although Sri Lanka does not have a long history in executing development projects, it is used for that after the independence of the country in 1948 by stepping up in Galloya project initiated by the first Premier of the country late Mr. D. S. Senenayake. However, the implementation of ―Mahawali‖ project created the path to Sri Lanka to vastly using development projects as a key instrument for rapid development of the country in parallel to many other developing countries in the South Asian region. With the recovery and rehabilitation programmes and projects to the drastic damages caused by the Tsunami tidal ways in Indian Ocean on 26th of December, 2004, Sri Lanka have had numerous number of such development projects executed by various donor agencies, and, International Non-governmental Organisations (INGOs) and local Non-governmental Organisations (NGOs). Despite of these huge donor contributions, significant number of government projects also was in track with the utilization of domestic funds in Sri Lanka. This was the peak period of the
  • 8. Sivananthan Pathmanathan MDS 6101 Page 8 of 25 development arena of Sri Lanka in the aspect of running many projects Island wide in line with other long-term development projects with the scope of meeting the betterment of people rather than commonly aiming the economic growth of the country. At present, there are many development projects being implemented by the direct execution by the government and by donor agencies such as UNDP, USAID, GTZ, JAICA, KOICA, UNICEF, ICRC etc., after the end of the civil war lasted for more than 30 years. This war caused unevaluated damages to the country in both human capital and national resources. As the result of this, emerging needs have been arisen in development and for that many such projects some are more identified and pipelined again after the Tsunami recovery period started in 2005. Considering some of these projects, it is worthwhile here for understand the value of development projects and their contribution to the growth of a country, especially a third world country like Sri Lanka. Grater Colombo Urban Transport Development project and the Vavuniya and Kilinochchi Transmission line project are the two major development projects funded LKR 44 billion (33 billion Yen) by the Japanese government through JAICA. The target of the first project is to construct 8.9 km length of road section from Kaduwela to Kadawatha of the Outer Circular Highway (OCH) with the aim of easing the traffic congestion in the Colombo metropolitan region getting access to southern expressway (Colombo - Katunayake) and connect other national roads with Colombo city while the second project scope is to provide reliable, adequate and efficient electricity to the people in Northern Province by reconstructing 132 KV power transmission network lines from Vavuniya to Kilinochchi with the construction of a grid sub-station at Kilinochchi, (Media centre, 24.03.2011). These two projects are tremendously supporting to the improvement of economy and the well being of the public incorporate with the government policy that provides infrastructure facilities to exercise economic activities in the sake of production for people‘s betterment. According to the Daily News of (07.04.2011) to construct 50,000 houses for war victims in North is one of the mega projects initiated by the pledge of Indian
  • 9. Sivananthan Pathmanathan MDS 6101 Page 9 of 25 government with the aim of resetting the internally displaced people in their own places. Apart from that, the development of the regional port of Kankesenthurai (KKS) with the support of US $ 40 million grant of Indian government under its assistance for Northern and Eastern provinces of Sri Lanka is an another mega project. It will support the local farmers in Jaffna to market their agro-products to other parts of the country by cargo-shipping to Trincomalee, Hambantota, Galle and Colombo while importing fertilizer, cement and non-cultivated food items such as dhal, potatoes, species, etc. in cheaper rate from Indian markets (Tuticorni and Channai), (Media Centre, 16.03.2011). In the meantime, this project also will contribute to the regaining of the KKS cement factory in the scope of providing transport facilities to its production to other part of the country. Moreover, in the context of security of the country, Navy also can use this port to carter their vessels which are operating in the Pork Sea near to this port as a base for Northern peninsula. Therefore, this is a multi-purpose project in the aspect of economy, security and social development of the people who lives in the Northern part of the country. When considering the government policy that provides infrastructure facilities for development, priority given to transportation is high not only in road and highway network improvements but also in port and aviation shipping. The aim of this policy is to invite foreign investors by giving fast market access to their products while bearing low transportation cost and cheaper labour wages. In this circumstance, built of the second international airport in Hambantota district with the support of US $ 200 million (£ 133 million) Chinse loan and boost of the railway network in south of the Island with Chinse aid of US $ 100 million are surely contributed to major improvements in the transport network in order to enable the country to engage in international trades more than the present size of it. Further, the location of the second international seaport of Sri Lanka at Magampura in Hambantota district will strengthen the function of these two projects. The Indian credit loan of US $ 70 Mn to upgrade the southern railway lines will also reinforce the railway network in order to integrate the strength of transportation of the country, (BBC, 03.10.2010). In contrast, though donor funded projects have the basic speciality to meet the needs of recipient countries, it is always accompany with some donor interests.
  • 10. Sivananthan Pathmanathan MDS 6101 Page 10 of 25 3.1 Donor Interests in Development Projects Though the development projects are tried to address the needs of the country and the aspiration of the people, the aim of the donors or donor countries is not always genuine because of their pre-conditions for assistance both in their grants and loans. The conditions may have some hidden agendas which are always favour to them at least from appointing a consultant to purchase equipment and technical support from their countries though they might be available in the recipient countries. For example, in the project of construction of the second international seaport in South, the local contract companies and workers have felt that they were neglected from the construction work of the new project because, one of the Chinese companies took over the contract. The main criticism is not about that, but about the interest rate of the loan provided by China to that project, which is higher than the other donors like Japan or Asian Development Bank (ADB) even Chine‘s projects are quick with few preliminary studies when comparing with other donor projects, (BBC, 03.10.2010). In addition to this, the major funding agency of this project is the lending arm of China, that is, Expert-Import Bank of China and their purpose is to undermine the Indian influence in Sri Lanka. Similarly, the Indian credit loan of US $ 70 million to upgrade the Southern and Northern railway lines and it‘s some other mega projects in Sri Lanka also a counter announcement to react the China‘s rival in its neighbouring country with having a fear that this is a threat to it for its influence in the region, (BBC, 03.10.2010). Hence, this kind of pre-determined assistance will lead unstable in Sri Lanka by creating political tension among the regional countries. Therefore, donors always have some political or socio-economic interests that favour to them while they are pumping money to projects in developing countries. Thus, development projects have critical and sensitive issues with their desired outcomes. As the main focus of this essay is to review the project implementation issues, the next topic will only analyse the critical issues of those projects in the past experience of Sri Lanka.
  • 11. Sivananthan Pathmanathan MDS 6101 Page 11 of 25 3.2. Project Implementation Issues In general, implementing a project is given more attention than other phases of a project, which are planning, formulation, monitoring and evaluation. According to a third party evaluation from June, 2008 to March, 2009 undertaken by the external advisory committee on Official Department Assistance (ODA) for evaluate the Japan‘s assistance in respond to Tsunami disaster, to promote the exact preparation of projects in non-project grant aid is the design-build system and it is heavily depend on the selection of contractors for construction but, in Sri Lanka, the understanding of this design-build system by the local contractors is very poor even though the Japan‘s post-Tsunami assistance to Sri Lanka was evaluated as manageable and implemented properly, (ODA report, 2009). However, when comparing with other recipient countries such as Indonesia and Maldives, Sri Lankan project performance was relatively high in quality and effectiveness along with good degree of necessity and usefulness. The following topics will somehow to review those issues in deep. 3.2.1. Project Formulation Issues The ODA report (2009) emphasizes that the assistance of Japan met the targets by appropriate operations in general but, the function of project formulation should be strengthen in addition to expose to the design-build system in Sri Lanka. Subsequently, the ODA report (2009) reviles that two of the Japan Fund for Poverty Reduction (JFPR) projects through ADB in Sri Lanka was advanced more than those in Indonesia by exhibiting high relevance and positive effectiveness and impact, though there was a concern about the sustainability. However, the report points out that the local bodies would have been taken leadership in the process of project formulation by the activity of identifying needs, which led to the projects delay, even there was an urgent rehabilitative support required for fast actions. On the other hand, in the process of implementing projects, awareness of projects did not correlated with the effectiveness of those projects and low self-containment of projects is a key factor for that in non-project grant aids, (ODA, 2009). This indicates that project formulation is also somewhat problematic in Sri Lanka.
  • 12. Sivananthan Pathmanathan MDS 6101 Page 12 of 25 3.2.2. Project Coordination Issues The findings of the ODA report (2009) reflect the weakness of project management in the aspect of project coordination. Some disaster rehabilitation projects in Sri Lanka are not properly coordinated with other donor projects or rural infrastructure programme for poverty reduction. As a result of this, they lost their success due to poor project management. Therefore, the success of a project is vital and it is closely depend on the responsibilities of project managers. Gunatilaka (1999) analyses the project coordination in different angle in his studies that the government is executing projects through their line agencies in Sri Lanka, too and the project implementation capacity of the government sector has been weakened through the fragmentation1 of the public institutional arrangements. Thus, this fragmentation causes for lack of synergies within the projects which are covered large area and required number of agencies for consultation and coordination. Having central and provincial institutional arrangement is a constraint to projects to get such consultation and coordination from different stakeholders when the ruling political parties are different with having conflict political agendas in those places. This issue has become after the devolution of power in Sri Lanka since late 1980s, (Gunatilake, 1999). Therefore, the project coordination can have complex issues in different paradigm. 3.2.3. Project Monitoring and Evaluation Issues In Integrated Rural Development Projects (IRDPs) in Sri Lanka, the project outcomes have given disappointments to the managers and the quality control was the serious constraint that due to lack of technical capacity to provide high level of supervision for monitoring. In contrast, Community projects funded by ―Janasaviya‖ Trust Fund and implemented by NGOs were successful by the systematic implementing 1 ―Fragmentation has occurred because of the proliferation of ministries, departments, public corporations and statutory bodies‖, (Gunatilake, 1999).
  • 13. Sivananthan Pathmanathan MDS 6101 Page 13 of 25 procedures and adopted the appraisal and monitoring procedures by the engineers at various stages of implementation, (Gunatilake, 1999). Hence, these two contradicted examples further indicate that the implementation of a project is heavily depending on the project manager‘s role in their responsibilities to lead the project as a success. Thus, the next topic will tried to extract the role of project managers in their managerial responsibilities. 4. Role of Project Managers Before going to review the role of project managers, it is useful to define the success and failure of the projects in different viewpoints. In general, projects seem to be failure when it exceeds its due date (time overrun) and draw more money to complete the tasks (cost overrun) (NetoAlvarez 2003). For example, the critical success factor is completing the activities in time in construction projects while deliver the product within the cost is in product development projects. But, today the situation is different and it is very difficult to determine the project status whether it is achieved the target or not due to the complexity associate with its management. Belassi and Tukel (1996) point out that even a delayed project meets its goal with the extra-cost recovery from project managers as penalty for delays. If it is in this case, the project is successful in the point of view of organisation in terms of meeting the clients‘ requirement, but it is a failure one for project manager and his or her team members due to not meeting the targets in time. On the other hand, a project could satisfy the customers by proving product outputs within the time and cost, although not giving happy to top-level management without meeting their expected specifications (Balassi and Tukel 1996). Diallo and Thuillier (2005) argue that management success does not mean project success because the success directly depends on the act that who is doing project evaluation; is it project manager or project beneficiaries. Therefore, defining the project failure is somewhat ambiguity and it depends on the perception of people. However, many studies identify the success factors in the connection of project performance and I believe it is heavily depending on the combination of many of those factors.
  • 14. Sivananthan Pathmanathan MDS 6101 Page 14 of 25 Belassi and Tukel (1996) emphasizes that combination of lack of top level management support and inadequate competencies of project managers will lead to inefficiency in their performance of project activities, by which, project failures are often take place due to weak organisational communication and institutional coordination, in particular, it is visible in matrix organisation rather than flat one. Project manager‘s competency is crucial for effective planning, scheduling and controlling project and managing its potential issues caused to delays in critical activities. It is also vital to communicate those issues and solutions with primary stakeholders. Thus, the role of project managers and their managerial capabilities and communication skills are important to lead the personnel and resources towards the direction of project vision and success. 5. Project Management in Development Projects Ahsan and Gunawan (2010) emphasizes that as many stakeholders (donor agencies, host country, beneficiaries and multi contractors and project coordination units) are involving in the process of project management, it is a complex task for project managers to control the schedules of time, cost and performance within the scope of desired deliverables to meet the specific project goals and objectives by breakdown the task activities among the diverse stakeholders and dysfunctional institutions and supervise the milestones of those performance. Diallo and Thuillier (2005) identify that trust, communication and team cohesion are some of the key success factors related to project managers in development projects. Therefore, project managers‘ role is the most deciding factor for project success or failures in managing projects, in particular, to the development projects in the context of third world countries. Balassi and Tukel (1996) identify some critical success factors of project performance and categorise them under four areas, which are related to project, project managers and their team members, organisation and external environment. As factors related to project managers is one of their focus areas, and they break down it further as ability to delegate authority, ability to trade-off, ability to coordinate, perception of
  • 15. Sivananthan Pathmanathan MDS 6101 Page 15 of 25 project manager’s role and responsibilities, and, their competence and commitment, it is rationale to consider this area and related factors to be examined in this study. In literature, several other researchers also consider similar identities related to project management as success or failure factors in their studies. 6. Managing Development Projects in the Context of Sri Lanka In Sri Lanka, the institutional capacity and human resources capabilities of managing development projects are not satisfactory. According to Koria (2009), inadequate field capability and capacity including weak planning and insufficient coordination of resources are major reasons for projects which are unable to meet the ownership and participation of locals in project implementation in post-tsunami recovery programmes in Sri Lanka. Yet, he points out that most of the organisations did not have the appropriate technical and managerial expertise and knowledge to undertake the reconstruction projects due to not having inherent competence to manage extensive portfolios of programmes and projects and it is noticeable in his point of view that the organisations are searching resources to projects while they run those projects and government also struggle to provide full technical support and coordination to many development agencies of post-tsunami programmes in Sri Lanka. Although, over 200 recovery projects are running with the cost ranged from a few hundred thousand to 10 million in different sectors such as rebuilding of homes, hospitals, schools and water and sanitation, there was not a single programme or project office in Sri Lanka, but most of the national organisations which are the project implementers, have their own project staff (Koria 2009). Therefore, it is understood that the institutional capacity and resources are not strong enough to cater the emergence needs of effective project management in public sector development in Sri Lanka. Although there are not many specific researches in this field in Sri Lanka, the study of Koria (2009) identifies several potential project management issues which are worthwhile to mention here to understand the urgent needs of further studies. Koria (2009) identifies that projects are handled by line managers instead of formally
  • 16. Sivananthan Pathmanathan MDS 6101 Page 16 of 25 certified project managers or professionals and therefore, the common project protocols or industry standards of project management and planning tools are not applied, in which, time is not considered as a cost and monitoring is not systematic to meet clear goals. The severe criticism on this field in Sri Lanka is about the management role which is unclear by overlapping the staff, responsibilities and tasks between the programme and project management that will create vacuum in the programme management (Koria 2009). Therefore, examination of the role of project managers is useful to professionals, government entities in this field and countries having the similar issues in this area. Thus, my focus is to analyse the gap that how project managers‘ part without deliberately contribute to failures in managing development projects. 7. Development Project Failures Projects are very effective tool to achieve desired goals and objectives in an organisational view and for that better project management is identified as a prerequisite to plan, design, implement and control targets in its management. Despite of this general identity about the purpose of project management, many projects are out of track and fail to meet their targets for numerous reasons. A survey conducted by Standish Group (2002) reveals that the failure rate of Information Technology related projects is 16% while costing to US $ 145 Billion damages to US companies in 2001. On the other hand, in Sri Lanka, only handful number of development projects (4.5%) meet their objectives within the allocated budget and time frame and which are rated as highly successful projects according to the Department of Foreign Aid and Budget Monitoring (DoFABM, 2010), Sri Lanka. Although, many previous studies indirectly extracted the cause of project failures by analysing the success factors associated with project performance, only few of them have focussed on managerial skills and knowledge of project managers. Yet, there is very less number of studies in project failures in Sri Lanka. Therefore, after this literature review, the gap in the literature will be filled by studying the development project failures in Sri Lanka in the perception of project managers and stakeholders.
  • 17. Sivananthan Pathmanathan MDS 6101 Page 17 of 25 8. Conclusion Development is a broader concept and it is not only mere economic growth but also socio-economic and cultural improvements for the wellbeing of the people of a country in a holistic way. People are the central part of development and their participation and degree of involvement is crucial for sustainable development. Development projects are far different than the business or industrial projects. It is providing services or facilities to the people for their betterment in poverty reduction, improve the living standards, protect the human rights and so on. The speciality of this kind of projects is mostly executing by governments than private sector organisations. In Sri Lanka, development projects are widely using for the growth of the country in many sectors such as infrastructure, power, health, sanitation and education. Provision of infrastructure facilities for economic exercise is given high priority in the government policy of Sri Lanka. Many donor funded development projects are running thereby with the scope of providing livelihoods in order to improve the living standard of people for their betterment. Unfortunately, those projects are facing implanting challenges due to weak institutional structure and poor technical capacity in monitoring and coordinating process of them, effectively. Accordingly, project management is vital for a project to meet its target within the time frame and budget. As many stakeholders are involving in the implementation process of a project and complex task of control the time, cost and constraints with the scope of desired deliverables, project management is not an easy task but, it is very important for the success of a project. When project exceed its planned time, that is, the time overrun will causes delays in meeting its objective and urge extra cost for price increase or inflation as cost overrun. Therefore, the time overrun of a project will automatically lead to cost overrun and these two factors are the main causes for project failures. Hence, plan, design, implement and control the targets of a project are heavily depend on the managers‘ skills and ability to execute the project. Otherwise, it is not possible to achieve the development of a country. In conclusion, development project is the best instrument to drive the development of a country if the country has proper institutional arrangement and technical capabilities with professional project managers.
  • 18. Sivananthan Pathmanathan MDS 6101 Page 18 of 25 9. Reference Ahsan, K and Gunawan, I 2010, ‗Analysis of Cost and Schedule Performance of International Development Projects‘, International Journal of Project Management, vol.28, pp.68-78. Arnstein, SR 1969, ‗Ladder of citizen Participation‘, Journal of American Institute of Planners, vol.35, no. 4, pp. 216-224. BBC news, 10.03.2010, viewed on 24.05.2011, http://news.bbc.co.uk/go/pr/fr- /2/hi/south-asia/8560554.stm. Belassi, W and Tukel, OI 1996, ‗A new framework for determining critical success/failure factors in projects‘, International Journal of Project Management, vol.14, no. 3, pp. 141-151. Daily News, 07.04.2011, viewed on 23.05.2011, http://www.dailynews.lk Department of Foreign Aid and Budget Monitoring 2010, ‗Electronic Project Monitoring System (e-PMS)‘, viewed 25 May 2010, http://pms.fabm.gov.lk/cp/index.asp. Diallo, A and Thuillier, D 2005, ‗The success of international development projects, trust and communication: an African perspective‘, International Journal of Project Management, vol.23, pp.237-252. Gunatilake, R 1999, ‗Rural Infrastructure Programmes for Poverty Reduction: Policy Issues from the Sri Lankan example’, Institute of Policy studies, Colombo. Koria, M 2009, ‗Managing for innovation in large and complex recovery programmes: Tsunami lessons from Sri Lanka, International Journal of Project Management, vol.27, pp.123-130. MachIntyre, GA 2003, ‗The Third Option: Linking Top-Down and Bottom-up Efforts in Community-based Development‘, Humanomics, vol.19, no. 1 /2, pp.3-11.
  • 19. Sivananthan Pathmanathan MDS 6101 Page 19 of 25 Media Centre for National Development of Sri Lanka: Ministry of Mass media and Information 24.03.24 & 16. NetoAlvarez, SJ 2003, ‗Project Management Failure: Main Causes‘, Graduate research report, Bowie State University, Maryland. Standish Group 2002, ‗The Standish Group Report‘, viewed 26 May 2010, http://www.scs.carleton.ca/~beau/PM/Standish-Report.html. Thirty party evaluation, 2009, ‗Evaluation of Japan’s Assistance in response to Tsunami Disaster’, ODA report, pp.1-27.
  • 20. Sivananthan Pathmanathan MDS 6101 Page 20 of 25 10. Appendix MDGs IN SRI LANKA Goal-Specific Ongoing Projects Project Ministry MDG 1 Gamidiriya Rural Livelihood Development Janapubudu , Gampubudu Samurdhi & Poverty Alleviation Dahasak Maha Wev Agrarian Services and Development of Farmer Community Gama Neguma Rural Livelihood Development Kiri Gammana Estate Infrastructure & Livestock Development Kantha Diriya Textile Development Osu Gammana Indigenous Medicine Jana Sevana Housing and Construction Industry Maga Neguma Road Development DCB, Pubudamu Wellassa, Plan Implementation Rajarata Navodaya Regional Development Senkadagala Navodaya Rural Economic Development Micro Finance Programmes Finance and Planning Jathika Saviya Nation Building Townships Development Urban Development and Water Supply Provincial Council & Local Government Secondary Education Education Modernization Project Nutritional Food, Uniforms —— do —— Highways Southern Expressway Highways Colombo-Katunayake Expressway —— do —— Outer Circular Highway —— do —— Ratnapura-Balangoda-Bandarawela Road —— do —— Reconstruction of 37 Bridges —— do —— Batticaloa-Trincomalee Road & Kinniya Bridge Project —— do ——
  • 21. Sivananthan Pathmanathan MDS 6101 Page 21 of 25 Road Network Improvement Project —— do —— Tsunami Affected Area Rebuilding Project ——do —— Reconstruction of Roads & Bridges in North East Province —— do —— Construction of Manampitiya Bridge —— do —— Baseline Road Phase III —— do —— National Highway Sector Project —— do —— Maintenance of Roads & Bridges —— do —— Power and Energy Cluster Norochcholai Coal Power Plant Power & Energy Upper Kotmale Hydro Power Project —— do —— Renewable Energy for Rural Economic Development Power Sector Development Programme —— do —— Vavunia – Kilinochchi Transmission Line Project —— do —— Colombo City Electricity Distribution Development Project —— do —— Greater Colombo Transmission Development Project —— do —— Urban Development and Water Supply Cluster - Kalu Ganga Water Supply Urban Development & Water Supply Kandy Water Supply —— do —— Batticaloa, Polonnaruwa, Trincomalee & Hambantota Water Supply —— do —— Small Scale Water Supply Schemes Rehabilitation & Upgrading in Provinces —— do —— Nuwara Eliya Water Supply —— do —— Kurunegala Water Supply —— do —— Greater Colombo Sewerage System —— do —— Maharagama Town Centre Development —— do —— Housing for 65,000 Slum Dwellers —— do ——
  • 22. Sivananthan Pathmanathan MDS 6101 Page 22 of 25 Housing Cluster Public Servants Housing at Jaltara & Geswatta Housing & Construction Cluster Housing & Settlement Improvement —— do —— Railways Cluster New Carriages Sri Lanka Railways Double Line Colombo- Matara —— do —— Purchase of New DMUU —— do —— Ratmalana – Airport ( Modernized Rail Service) —— do —— Matara – Kataragama New Rail Road New Railroad Development Agriculture Cluster Develop Horana, Sita Eliya, Agricultural Development Girandurukotte and Labuduwa Seed Farms and Maha-Illuppallama Field Crop Research Institute Promote Packaging Methods & Transportation —— do —— Establishment of Dedicated Agricultural Product Zones — do —— Implementation of National Organic Standards —— do —— Udawalawe Left Bank Agriculture, Irrigation and Mahaweli Development Minor Tank Rehabilitation by Agrarian Services and Farmer Organization Development of Farmer Communities Agro Wells —— do —— Deduru Oya Reservior Irrigation Menik Ganga Reservoir —— do —— Rambukkan Oya Reservoir —— do —— Plantation Development Project Plantation Industries Coconut Sector Development Programme Coconut Development
  • 23. Sivananthan Pathmanathan MDS 6101 Page 23 of 25 Fisheries Cluster Post-Tsunami Coastal Resources Rehabilitation Fisheries and Aquatic Resources Fisheries Management Project —— do —— Establish St. John‘s Fish Market Complex at Peliyagoda —— do —— Industries Cluster Industrial Estates Industrial Development Gamata Karmantha —— do —— Textile and Apparel College Textile Industry Development Services Cluster Dahas Diriya Programme Enterprise Development and Investment Promotion Science, Technology, Research and Development Agro Food Project —— do —— IT Park – Malabe Urban Development & Water Supply Social Protection Cluster Senehasa Programme , Child Development and Women‘s Empowerment Thriposha Programme Health Care and Nutrition Flood and Drought Relief Programme Disaster Relief Services Social security for Disabled Soldiers —— do — Rural Infrastructure Cluster Development Renewable Energy and Rural Economic Power and Development (World Bank) Energy Puttlam Housing Project (for IDPs) Resettlement Poverty Alleviation Programme based on the Agriculture Construction of Agro-Wells Pro Poor Rural Development Project – Finance and Planning SIRUP III (JBIC)
  • 24. Sivananthan Pathmanathan MDS 6101 Page 24 of 25 Regional Development Cluster Ruhunu Udawa Pilot Project Regional Development -do- Infrastructure Development Roads & Bridges Cluster Highways Southern Transport Development Project Highways (Supplementary Loan) Construction of Flyovers Nugegoda Junction & -do- Roads Infrastructure Elements Construction of a Grade Separated Intersection on Sri Jayawardenpura – Kollupitiya –do- Road and Nawala - Rajagiriya Road Junction at Welikada Rehabilitation of CD class roads in North and East Nation Building and Development Construction of Mahanama Bridge Highways Reconstruction of Mannar Bridge & Causeway -do- Electricity Cluster Trincomalee Coal Power Plant Power and Energy Bradlands Power Plant –do- Moragolla Hydro Power Project –do- Kerawalapitiya Kotugoda Transmission Line –do- Killinochchi Chunakum Transmission Project -do- New Galle Transmission Development -do- Trincomalee Veyangoda Transmission Line -do- Eastern Power Transmission Project -do- Combined Cycle Power Plant at Kerawalapitiya -do- Augmentation for Grid Sub-stations -do-
  • 25. Sivananthan Pathmanathan MDS 6101 Page 25 of 25 Production, Services and Environment Agriculture Cluster Agri Business Development Project Agricultural Development Moragahakanda and Kaluganga Reservoirs Development Project Agriculture, Irrigation and Mahaweli Construction of Fertilizer Storage Areas Agrarian Services and Development in Agrarian Centres Strengthening Small Farmer —— do —— Development Programme Assistant of Outdoor Paddy Storage Bins —— do —— Tharuna Govi Aruna Programme —— do —— Uma Oya Diversion Project Irrigation Urawa Diversion Project —— do —— Yan Oya Project —— do —— Smallholder Out Growers Estate Development Programme Plantation Industries Fisheries Cluster Dickowita Harbour Ports and Aviation Tsunami Affected Areas Rehabilitation Project Industries Promotion Cluster SME Sector Development Programme II Enterprise Development and Investment Entrepreneur Development Programme -do- National SME Data Base Development -do-