1Q/2009 - Project Management Survival

No noticeable change has been recorded in the first quarter of 2009 when coming down to the Project Management profession. Acting mentally rather than economically grounded, the worldwide economic crunch has hit the Romanian financial and economical background and made many of the companies, small firms irrespective of the sector to put aside any development plans, any investment decision.

The Projects which were up and running in the later part of 2008 have been continued to their completion but many others waiting in the pipeline in various zones of the economy were brutally cancelled or better, postponed for other favorable moments.

One common factor seems to be at the root of decisions when the projects were stopped: the Sponsor. Either in a form of Bank association, a sole financing Bank or a special purpose financing vehicle, the Sponsor is not willing anymore to loan any amounts under the volatile market conditions and with high risk of borrowing. Many of the projects were in full progress well into the Executing phase with financing in place but the soaring of the capital cost turned them simply not feasible in the beginning of 1Q09, and sadly the abandoned sites displaying open lands and structures at incipient growth can be seen almost everywhere across the country.

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