Volume X - Issue III - March 2008
Other News Affecting Projects & PM
EBRD provides funds for energy-efficiency projects in Ukraine The European Bank for Reconstruction and Development (EBRD) has announced that it is providing a loan facility of $25 million to Bank Forum of Ukraine. Clients of the bank and beneficiaries of the EBRD funding are expected to be local private sector companies, who can receive loans of up to $5 million to finance their energy efficiency and renewable energy projects.
Forum is the third Ukrainian bank to join a €100 million energy efficiency framework, approved by the EBRD’s board in October 2006. Its main purpose is to tackle Ukraine’s energy intensity, which is over three times that of the average for the European Union. Private sector companies that participate in the programme are expected to reduce their energy consumption and expenses; something that is particularly important with rising energy prices in Ukraine. The impact will help businesses remain competitive and reduce their emissions of greenhouse gases and, in aggregate, help mitigate the effects of climate change. There are two important technical assistance components, which support the framework. Project consultants, funded by the Swedish government, are responsible for project screening, marketing and an information campaign. At the same time energy efficiency experts, funded by the Austrian government, assist potential sub-borrowers to identify specific energy efficiency measures, prepare rational energy utilisation plans and assist in preparing loan applications The EBRD is the biggest financial investor in Ukraine. As of January 2008 it had committed over €3.2 billion through more than 158 projects.
The European Bank for Reconstruction and Development (EBRD) was established in 1991 when communism was crumbling in central and eastern Europe and ex-soviet countries needed support to nurture the new private sector. Today the EBRD uses the tools of investment to help build market economies and democracies in countries from central Europe to central Asia; it is the largest single investor in the region. The EBRD is owned by 61 countries and two intergovernmental institutions. EBRD invests mainly in private enterprises, usually together with commercial partners. It provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. It also works with public companies, to support privatization, restructure state-owned firms and improve municipal services. The Bank uses its close relationship with governments to promote policies that bolster the business environment. The mandate of the EBRD stipulates that it must only work in countries that are committed to democratic principles. Respect for the environment is also part of the strong corporate governance attached to all EBRD investments. For additional information, visit http://www.ebrd.com/index.htm. Source: EBRD Press Release, January 30, 2008 Report from Davos: Brown Seeks New Drive on Millennium Goals Reported by Miles Shepherd in London, UK.
At the recently concluded World Economic Forum in Davos, Switzerland, Gordon Brown challenged business leaders to play their part with politicians and aid agencies to prevent the dismal failure of international anti-poverty efforts. The British Prime Minister invited executives at Davos to a Downing Street summit in May at which companies will be asked to come up with resources and ideas to help to meet the Millennium Development Goals, eight key targets set in 2000 with a 2015 deadline. Brown's appeal was shared by UN Secretary- General Ban Ki-Moon, Bill Gates of Microsoft, and Bono, the rock musician. The Downing Street summit will be followed up by EU leaders at their meeting in June and at the G8 meeting of leading industrialized powers in Japan the following month. ..." [The Times (UK, 01/26)/Factiva] Reuters noted that "Rich nations are failing the world's poor and must redouble efforts to tackle the worst effects of global poverty, Ban said on Friday. 'Too many nations have fallen behind. We need fresh ideas and fresh approaches. It is unacceptable that one child dies of hunger every day, every five seconds,' Ban told a news conference at the World Economic Forum... Brown said Britain will host a meeting in May of private sector companies to discuss what they could contribute to meeting the millennium goals and tackling what he described as a poverty and development emergency. ..." [Reuters (01/25)/Factiva] Source: World Bank Press Review, January 28, 2008.
Bangladesh's Donors Propose $4 Billion Post-Cyclone Plan A group of donors has proposed a $4 billion recovery program for Bangladesh three months after the ... deadly cyclone, officials said on Friday, February 1, 2008. Officials said the 11 donors, including the UN and USAID, handed a report to Bangladesh's interim ...government on Thursday suggesting the proposed rehabilitation be implemented in three phases.
The report - received by the government's External Resources Division - put the cost of damage to houses by cyclone Sidr at $800 million, agricultural losses at $440 million and damage to the transport sector at $140 million. It proposed $1.51 billion in 2008-2012, $1.39 billion in 2013-2017 and $1.09 billion in 2018-2022 for risk identification, disaster preparedness and mitigation programs. ..." [Reuters/Factiva] Xinhua notes that "...The 70-member mission led by the World Bank ... started the assessment on January 11 following the government's appeal for assistance for rehabilitation in the Sidr- affected South-West region of the country. The mission visited the affected areas, talked to people on the damage caused by the ... cyclone, discussed with officials of different ministries and prepared a 400-page draft assessment report which was presented to the government Thursday. ..." [Xinhua/Factiva] Meanwhile AP reported that "The Asian Development Bank (ADB) and other aid agencies will give Bangladesh $190 million in loans and grants to assist in recovery from a devastating cyclone last year, the Manila-based bank said Friday. A loan of $120 million will be provided by the ADB, along with $60 million from the Japan Bank for International Cooperation. ..." [The Associated Press/Factiva] Source: World Bank Press Review, February 1, 2008 Editor’s note: Since we know of no project management professional organizations operating in Bangladesh, we must assume that the donors and the Government of Bangladesh will rely on industry and global financial institutions to ensure that good PM practices are used on these projects. All the same, this represents billions of dollars of global investment in programs and projects that may well be invisible to the global PM community and another geographic area that needs more PM.
Big Money for Projects to help Neglected Problems The United Nations’ central body for coordinating relief and humanitarian aid has allocated more than 100 million dollars in grants for critical life-saving work in some of the world’s neglected trouble-spots. The money will fund the work of UN agencies and their partners in 15 countries, including Democratic Republic of the Congo, Zimbabwe, Afghanistan and Myanmar.
Announcing the allocation, the UN Under-Secretary-General for Humanitarian Affairs, Sir John Holmes (pictured), described the grants as “often the last bit of hope for millions of people caught up in some of the most severe and protracted humanitarian crises around the world.” The grants are made from the UN’s Central Emergency Response Fund (CERF), which is mandated to commit one-third of its money each year to redress imbalances in the global distribution of aid by supporting neglected crises. “It is thanks to the existence of tools like the CERF and the generous support it receives from donors each year that we can fill gaps in the humanitarian response and provide assistance to the most vulnerable,” Mr. Holmes said. The $104.2 million allocated today includes $38 million to Democratic Republic of the Congo (DRC), $10 million to Ethiopia, $7 million to Côte d’Ivoire and Pakistan, and smaller sums to Niger, Nepal, Kenya, Afghanistan, Zimbabwe, Burkina Faso, Mali, Republic of Congo, Cameroon and Myanmar. Over the past year, CERF funding has made a critical difference in countries including Côte d’Ivoire, which received only 53 per cent of the resources needed for critical basic needs in 2007. CERF funds were used to provide food, health care and education to internally displaced persons (IDPs), including children, and made it possible for the UN Children’s Fund (UNICEF) to restore access to safe drinking water in remote, rural communities. Over the past two years, a total of $200 million of all funds contributed to the CERF has been used in support of forgotten crises in 23 countries, mostly in Africa. The CERF is funded by voluntary contributions from Member States, non-governmental organizations, local governments and individual donors. Source UN Daily News Digest, February 1, 2008
NASA unveils $17.6 Billion Budget for FY2009 NASA has announced a $17.6 billion budget for fiscal year 2009 to continue exploring the solar system, building the International Space Station, studying Earth from space and conducting aeronautics research. NASA Deputy Administrator Shana Dale said the increase for NASA's 2009 budget demonstrates President Bush's commitment to the agency's missions. With the increase, NASA still accounts for less than 1 percent of the federal budget.
The NASA budget includes $5.78 billion for the space shuttle and space station programs, $4.44 billion for science, $3.5 billion for development of new manned spacecraft systems and $447 million for aeronautics research. Dale noted steady progress with NASA's missions, with three successful space shuttle launches last year and up to six planned for this year, including a flight to service the Hubble Space Telescope. The agency also is making progress in developing the Orion spacecraft and Ares launch vehicles to replace the aging shuttle fleet and prepare for journeys to the moon and destinations beyond. NASA has 55 science missions currently in space, about half involving international partnerships, with 15 additional missions scheduled for launch by the end of 2009. "In Earth science, NASA's investments in measuring the forces and effects of climate change are allowing policymakers and the public to better understand its implications to our home planet," Dale said. NASA will dedicate $910 million during the next five years to develop new missions to add to our Earth-observing fleet of spacecraft. The budget also includes funding for lunar science to further scientific understanding of the moon and for planetary science and astrophysics to explore worlds beyond Earth, and to study dark energy and other mysteries of the cosmos. As the International Space Station nears completion, the NASA budget provides funding to help spur development of commercial space transportation services to send cargo and possibly crews to the station after the shuttles retire in 2010. Without commercial providers, the United States will depend on the Russian Soyuz spacecraft to carry astronauts between Earth and the space station. Created in 1958 and celebrating its 50th anniversary this year, the National Aeronautics and Space Administration (NASA) is America’s focal point for research, development and exploration of outer space. In 2005, the US President and Congress committed the United States to exploring the solar system and beyond: completing assembly of the International Space Station, flying the new Crew Exploration Vehicle no later than 2014, returning astronauts to the moon by the end of the next decade, and sending human missions to Mars and beyond. For 50 years, NASA has been leading the world with advanced program and project management. Additional information about NASA can be found at www.nasa.gov.
Malaysia launches multi Billion-Dollar Renewable Energy Program Malaysian Prime Minister Abdullah Ahmad Badawi has announced a major development project worth billions of dollars to fuel growth in resource-rich Sarawak on Borneo Island. He said the government would spend an initial $1.54 billion to kickstart the Sarawak Corridor of Renewable Energy, the last of five programs that form a long term economic blueprint. The announcement came ahead of elections expected in March and would focus on developing the state's energy sources, hydropower, coal, natural gas and petroleum.
According to the Associated Press (AP) "...The plan envisions Sarawak receiving private investments worth $103 billion through 2030 to fund projects in a wide range of sectors, including energy resources such as hydroelectric dams and coal-fired power stations. Abdullah said “... the plan was expected to generate 1.6 million jobs and slash the state's poverty rate to 1 percent in 2030, down from the current 7.5 percent.” Thirteen agreements were signed Monday between Sarawak's government and several companies, including one with global miner Rio Tinto Ltd. to supply power to a planned major aluminum smelter. ..." [The Associated Press (02/11)/Factiva] Reuters added that "...The blueprint... aims to transform the sprawling timber- and energy-rich state on Borneo Island into an oil and gas, aluminum, marine engineering and fisheries hub. ..." [Reuters (02/11)/Factiva] Source: World Bank Press Review, February 11, 2008
Airbus Executive Predicts Dramatic Industry Growth According to an article published by the BBC on Thursday, February 7, 2008, European plane maker Airbus expects global passenger traffic to grow at an average of 4.9% a year, almost trebling over the next two decades. Airbus also forecasts that 24,300 passenger and freight aircraft worth $2.8 trillion will be ordered between now and 2026. Average industry deliveries will be 1,215 aircraft a year, with demand greatest in Asia Pacific, which will account for 31% of orders, followed by North America. The global passenger aircraft fleet is projected to total 28,550 aircraft by 2026, with 1,215 new planes delivered per year.
According to Airbus chief operating officer John Leahy (pictured), “Air transportation is definitely a growing industry contributing to economic development and generating wealth around the world.” Airbus reported 1,341 net new orders of commercial aircraft, 72 less than Boeing. Airbus delivered 453 aircraft in 2007, compared with Boeing's 441. Airbus said that environmental constraints and limits on airport infrastructure will create more demand for aircraft that seat more than 400 passengers. Source: http://news.bbc.co.uk/1/hi/business/7232404.stm Editor’s note: We have published this article because of what it portends for the project management world. According to the Airbus projections, more projects and PM needs will occur in civilian aircraft industries, in airports and adjacent infrastructure development, in air traffic control systems, among airlines, and in air transportation support services. As noted, this is a trillion dollar industry with future needs for thousands of project managers and trained PM professionals. World Bank to Support Power and Water Management
The World Bank is planning new initiatives to identify and support mutually beneficial projects in power and water management sectors as part of regional integration in South Asia. After a meeting with Foreign Adviser Iftekhar Ahmed Chowdhury, World Bank Vice President Praful Patel (pictured) told reporters that the Bank has discussed the matter with Bangladesh and will talk to Nepal and India to support win-win projects in power or water management. 'South Asia is least integrated as compared to others. Regional integration will not only help increase GDP growth rate, but will also increase capability of facing natural disasters like climate change, floods or cyclones in a better way,' he said. ..." [United News of India/Factiva] United News of Bangladesh reported that "...He said India is the worst power-starved country and a regional cooperation could be worked out on win-win basis through consultations among Bangladesh, India and Nepal to meet the power shortage. On Bangladesh-World Bank cooperation, Patel said the Bank would continue support to the development agenda of the caretaker government. ..." [United News of Bangladesh/Factiva] Xinhua noted that "The World Bank will provide Bangladesh with $100 million credit to help finance part of the resource gap incurred by devastating cyclone Sidr that hit the country on November 15 last year. An agreement to this effect was signed in Dhaka Monday by Bangladesh and International Development Association (IDA)... The quick disbursing credit would allow the government to access financial assistance necessary to mitigate the impact of the cyclone Sidr that caused huge damage to crops and property apart from human lives. ..." [Xinhua/Factiva] Source: World Bank Press Review, January 29, 2008
Indian cabinet minister stresses more coordination Indian Defence Minister A.K. Antony stressed the importance of greater coordination and better project management to ensure timely and cheap deliveries for defence projects. He said “Planned and time-bound application and delivery” was necessary in the fields of hypersonic propulsion, unmanned land and åunderwater vehicles, robotics, smart materials, micro and nano technologies being pointed by many. He was speaking in Bangalore at the Defence Research and Development Organization or DRDO and said that we must make the nation self-reliant in defence-related technology. In his address to scientists, on his visit to major defence establishments here, Mr. Antony said: “We expect the DRDO to lead India towards self-reliance in this area, so that combined with industrial and other economic progress, India can be considered a true super power in the South Asian region.” The DRDO (http://www.drdo.org) is the premier Indian government body in product development and research for defence and has been responsible for many of the developments in materials and technology, especially in Space research and missile technology among other areas. As such, the use of project management principles and practices is not new to them. What is significant is the emphasis being given in a sector which has traditionally been victim of bureaucratic structures and differing pressures from various parts of the government. Source: The Hindu – 13 Feb 2008 - http://www.hindu.com/2008/02/13/stories/2008021360211400.htm
Ban Ki-Moon seeks US support for Millennium Development Goals Following talks on Friday, 15 February, in Washington with United States President George W. Bush, United Nations Secretary-General Ban Ki-moon stressed the importance of reaching global anti-poverty targets and said a strong partnership between the world body and its host country is key to achieving shared goals. Speaking to reporters following their 90-minute meeting, Mr. Ban said he has been working to make the UN “a more trusty, transparent, accountable and more effective organization” and pledged to continue that effort. He also said regional hotspots such as Darfur, Lebanon, Myanmar and Kenya are high on the agenda. “There are so many problems that challenge us at this time; I'm committed to address these issues.”
(photo courtesy of Javno.com) At the same time, Mr. Ban pointed to his efforts to meet global challenges such as climate change. “And I need your strong support as we are going through this year, a midpoint year, to realize the Millennium Development Goals (MDGs) by 2015,” he said, citing in particular the needs of Africa. Toward that end, he said President Bush’s upcoming visit to the continent "will be very important and historic," voicing hope that he would "discuss with African leaders on how to achieve these Millennium Development Goals, how to help people overcome abject poverty, and sanitation [problems] and [gain] access to educational opportunities." Mr. Ban wished the US President success, calling his trip “a very great opportunity.” He emphasized the need to sustain the momentum established in December last year at the UN Conference on Climate Change, pledging to work for a globally accepted framework to replace the Kyoto Protocol, which contains legally binding targets for cutting greenhouse gas emissions but will expire in 2012. “The United States is the country with the most ability for technology and financing capacities. I count on your leadership and active participation,” said Mr. Ban. “All in all, I need your strong support, because I believe a strong partnership between the United Nations and United States is the crucial element in carrying out my duty as Secretary-General, and also in making the United Nations a stronger organization in carrying out the common challenges we share together.” According to a UN spokesperson, during their meeting, the two leaders discussed UN reform, “with the Secretary-General briefing President Bush on his efforts to promote transparency and accountability at the UN.” They also discussed climate change, the MDGs in an African context, Darfur, Kenya Myanmar, Kosovo, Iraq, Lebanon and Afghanistan. Source: UN Daily News Digest, February 16, 2008 Editor’s note: We at PMForum strongly support the Millennium Development Goals, but believe that they can be achieved only with strong leadership and through the implementation of projects. This will require the utilization of modern program and project management, which we see as an opportunity for more PM professionals and leaders to contribute to a better future. Director of Africa Water Facility call for more investment Africa will have to redouble its efforts to attain the Millennium Development Goals (MDGs) on sanitation if meaningful progress is to be made, the African Water Facility Director, Kordje Bedoumra, said on 18 February in Durban, South Africa.
“With eight years to go, it is clear that most African countries are unlikely to reach their Sanitation MDG targets unless approaches to sanitation change,” Mr. Bedoumra (pictured), who is leading the African Development Bank (AfDB) Group delegation to the Africa Sanitation Conference (AfricaSan) in Durban, South Africa, said. Presenting the findings of a study by the African Ministers’ Council on Water jointly funded by the African Development Bank and the World Bank, Mr. Bedoumra said for Africa to meet the MDG for water and sanitation, the number of persons served would have to double from 350 million to 700 million by 2015. Even that would still leave 200 million people without the services. Investments in the sector would also have to be doubled to some US$26 billion. The study is titled ‘Can Africa Afford to Miss the Sanitation MDG Target?’ He said there was still a poor understanding of the critical role improved sanitation could play in Africa’s development. This was due, mainly, to competing priorities, including education and health. This has resulted in sanitation being considered as a low priority not only for households, but also for local, national and regional governments and this is reflected in inadequate budget allocations. Meanwhile, strategies for the sector are largely ‘left on paper’ while the provision of trained personnel and evaluation of projects remain poor. Mr Bedmoura called for a reversal of this trend. “Sanitation is a key building block for health, the environment, education and gender equality. Improved sanitation offers a clear route to poverty reduction and the population’s improved health status,” he said. He urged African governments and their development partners to make the issue of sanitation a priority. The African Development Bank Group is a key sponsor of the conference that has brought together some 250 delegates, including African ministers responsible for water and sanitation or their representatives, representatives of private and public sectors, academic and donor communities as well as representatives of multilateral institutions. Other lead sponsors of the conference include the South African government, UNICEF and the World Health Organization.
The African Water Facility (AWF) is an initiative led by the African Ministers' Council on Water (AMCOW) to mobilize resources to finance water resources development activities in Africa. The African Development Bank (AfDB) hosts the Facility on the request of AMCOW. Mr. Bedoumra is the director of the African Water Facility and the director of the AfDB water and sanitation department. The African Development Bank (ADB) is a regional multilateral development finance institution established in 1964 to mobilize resources towards the economic and social progress of its Regional Member Countries (RMCs). It is headquartered in Source: African Development Bank news release, February 19, 2008 New UN Report indicates Climate Change is resulting More and more companies are embracing environmentally-friendly policies and investors are pumping hundreds of billions of dollars into cleaner and renewable energies, according to a new publication released on 20 February by the United Nations Environment Programme (UNEP). While the impacts of climate change range from the melting of permafrost and glaciers to extreme weather events, UNEP’s Year Book 2008 states that it is also causing a shift in the mind-sets, policies and actions of leaders of governments, companies and the UN itself. According to the report, “Increasingly, combating climate change is being perceived as an opportunity rather than a burden and a path to a new kind of prosperity as opposed to a brake on profits and employment.” The emerging ‘green’ economy is also credited with driving invention and innovation on a scale not seen since perhaps the industrial revolution. The Year Book was presented in Monaco at the opening of the largest gathering of environment ministers since the landmark UN Climate Change Conference in Indonesia last December which ended with nearly 200 countries agreeing in Bali to launch a two-year process of formal negotiations to tackle the problem of global warming. UNEP’s Governing Council/Global Ministerial Environment Forum, which is focusing on the theme “Mobilizing Finance for the Climate Challenge,” brings together ministers as well as representatives of business, organized labour, science and civil society.
“Hundreds of billions of dollars are now flowing into renewable and clean energy technologies and trillions more dollars are waiting in the wings looking to governments for a new and decisive climate regime post 2012 alongside the creative market mechanisms necessary to achieve this,” UNEP Executive Director Achim Steiner (pictured) told the Forum. “Formidable hurdles remain as to whether these funds will ultimately seek out new, climate-friendly investments for the future or whether they will seek the lowest common denominator by flowing into the polluting technologies of the past,” he said. Source: UN Daily News Digest, 21 February 2008. Editor’s note: We at PMForum are convinced that Climate Change and the emerging Green Economy represent a “new frontier” for project management. As the billions of dollars are invested in research, governmental responses, and new products and services, thousands of programs and projects will be launched with the need for project managers and effective professional project management.
|
PM World Today™ is a trademark of PMForum, Inc.
PMWT™ is a trademark of PMForum, Inc.
The information on this web site was checked for accuracy and authenticity when last updated. If there is any accidental infringement of copyright, the publisher of this site apologize for their actions, and would like to be notified. In addition, the publisher of this site cannot bear responsibility for the actions or the results of action of individuals or companies arising from use of information and advice contained within it.
PM World Today Privacy Policy Terms and Conditions.
© Copyright 2008 PM World Today
© Copyright 2008 PMForum, Inc.
unless otherwise noted.