Project Stakeholderstheargeo.org/.../projectmanagement/...stakeholders.pdf · ARGeo-C6 Short Course...

6th African Rift Geothermal Conference | ARGeo-C6 Short Course 1 | Project Management for Geothermal Development

Project Stakeholders

Carine Chateney and Yngvi Gudmundsson

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Stakeholders

• What is a stakeholder?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Stakeholders

• What is a stakeholder?

• Any individual , group, or organization that can affect, be affected by or perceive itself to be affected by an initiative (programme, project, activity, risk) – Prince2

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Stakeholders

• Why do we need to know them?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Stakeholders

• Why do we need to know them?

• Who are they and what is their interest?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Stakeholders

• Why do we need to know them?

• Who are they and what is their interest?

• When should we identify them?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Stakeholders

• Why do we need to know them?

• Who are they and what is their interest?

• When should we identify them?

• How do we identify them and their interest?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Identifying

• Stakeholders in Geothermal projects?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Identifying

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Identifying

• Project members are stakeholders • Project manager

• Customer/user

• Performing organization (directly involved in the project execution)

• Project team members

• Project management team

• Sponsor

• Typically these are the primary stakeholders

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Identifying

• Secondary stakeholder generally outside of the project • Influencers

• Can influence the project success

• Affected by the project • Positive and negative affect

• Indirectly

• Perceive as being affected

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Identifying Stakeholders

• Primary: • Usually obvious

• Most are involved in the project

• Secondary: • Can be difficult to identify all

• Often only emerge when project has started

• Good to brainstorm, mind map to find all

• Categorizing with importance

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Mapping up stakeholders

• Mapping of primary stakeholders

• Many of the primary stakeholders are part of the Organizational chart

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Secondary stakeholder groups

Potential stakeholder include but are not limited to:

Competitors National communities

Employees Professional associations

Government Prospective customers

Government regulatory agencies Prospective employees

Industry trade groups Public at large (Global community)

Investors Shareholders

Labour unions Suppliers

Local communities

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Stakeholders

• How, when and what information should be communicated to them?

• Are they a threat?

• Can they improve the project?

• Is they project a threat to them?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Geothermal project stakeholders

• Most power project are large scale • Many project within a the project

• Project portfolio

• Many project managers and management teams • Who is developing the project?

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Primary stakeholders

• Developer (Project manager)

• Energy purchaser Agreement holder (Customer)

• Lenders and investors (Sponsors)

• EPC Contractors, sub-contractors advisors and others working in the project (Project team)

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Example

• Exploration • Developer

• Energy purchaser (PPA not necessarily in place

• Lender (usually investors or grant provider)

• Specialized geothermal resource advisor

• Drilling contractor

• Engineering and environmental advisors

• (Local community)

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Example

• Steam field (production drilling and steam gathering) • Developer (Same or new, also main investor)

• Energy purchaser (PPA in place)

• Lender (Bank)

• Specialized geothermal resource and chemistry advisors

• Drilling contractor

• Infrastructure and steam gathering contractor

• Engineering and environmental advisors

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Example

• Power plant (production unit and grid connection) • Developer (Same or new, also main investor)

• Energy purchaser (PPA fully established)

• Lender (Banks)

• Main contractor

• Technical advisors, sub-contractors and main equipment suppliers

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Secondary stakeholder groups

Potential stakeholder include, but are not limited to:

Competitors National communities

Employees Professional associations

Government Prospective customers

Government regulatory agencies Prospective employees

Industry trade groups Public at large (Global community)

Investors Shareholders

Labour unions Suppliers

Local communities

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Secondary stakeholder

• Secondary stakeholder are typically outside of the project.

• Will receive the information they are provided from the project team or through indirect information

• Information through, media, government etc.

• Can be an advantage to a head of the indirect information sources

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Who and what interest?

• Competitors • Other developers, investors • Marked development, opportunities

• Employees • Part of the project (in large scale) • Part of the organization doing the project

• Government • Politicians

• Government regulatory agencies • Usually related to permitting

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Who and what interest?

• Industry trade groups • Might benefit and help the project • Can affect their market

• Investors • Investors who are not directly involved

• Labour unions • Can benefit them, more jobs • Can delay work if members are not satisfied

• Local communities • Working with them and informing is important • Usually split views, negative and positive

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Who are they in Geothermal

• National communities • The nation, geothermal can be important for the future

• Professional associations • Many professionals related to the project

• Prospective customers • Grid company a Primary stakeholder, others are mostly general public

• Public at large • The media!

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Secondary stakeholder groups

Potential stakeholder include but are not limited to:

Competitors National communities

Employees Professional associations

Government Prospective customers

Government regulatory agencies Prospective employees

Industry trade groups Public at large (Global community)

Investors Shareholders

Labour unions Suppliers

Local communities

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Ranking the stakeholders by project risk - Example

Stakeholder Possibility of

involvement (A = 1-5)

Impact on project (B = 1-5)

Score AxB

The national government

Local government

Employees

Environmental protection agency

Ministry of Energy

Labour union

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Communication plan

• Higher score = communication more important • When to send information

• During milestones achievement

• Some may require regular progress info

• When drastic project changes occur

• Etc.

• How are the informed • Directly: email, post, meeting

• Through media

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Communication plan

• What is the stakeholders interest

• Example • Environmental protection agency- interests:

• To make sure that changes to the environment are minimized.

• Inform them on what measures have been taken

• Outcome of ESIA, etc.

• Better to get the comment sooner than later

• Keep involved from start

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Linking the Stakeholder to the project

• Do they have any link to the project • Examples

• Government agencies my be able to affect licences

• Grid company may need approval from government and agencies

• Government and agencies might need approvals with unions

• Government needs public acceptance

• Investors/Developers may need acceptance from other shareholder

• Etc.

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

Summary

• Primary stakeholder are the most important, but also the most obvious as they are directly involved

• Finding and handling the secondary stakeholder can be more complicated

• Keeping stakeholders informed is important, lower risk and can provide opportunities

ARGeo-C6 Short Course 1 | Geothermal Project Management Addis Ababa, Ethiopia | 31 Oct – 1 Nov, 2016

6th African Rift Geothermal Conference | ARGeo-C6

Short Course 1 | Project Management for Geothermal Development

Organized by: United Nations University Geothermal Training Programme (UNU-GTP)

Financed by: Icelandic Ministry for Foreign Affairs – ICEIDA and Nordic Development Fund

Coordinator: Ingimar G. Haraldsson, UNU-GTP

Lecturers: Anthony Ng‘ang‘a Ngigi, Geothermal Development Company, Kenya

Carine Chatenay, Verkís Consulting Engineers, Iceland

Peketsa Mwaro Mangi, Kenya Electricity Generating Company, Kenya

Yngvi Gudmundsson, Verkís Consulting Engineers, Iceland