Consolidated Energy Systems Limited (CESY), a privately owned renewable energy development company, proposes to construct a solar photovoltaic power station in Lusaka to address the power shortages being experienced as a result of low water levels at Kariba Dam and Kafue Gorge. The project is estimated to cost One Hundred Million United States Dollars (US$100,000,000.00) and is projected to be completed in 2 years. The company proposes to embark on the project in June 2016.
CESY is considering two approaches to the procurement of the construction company to undertake the works, open international competitive bidding or negotiating with reputable companies.
1. The Managing Director has requested you as the Supply Chain Director, to recommend one of the options. Which method would you recommend to the CESY Management and why? Outline the procedure you would follow, for the recommended procurement method, to arrive at contract award.
2. What do you envisage as the functions of the Project Manager for this project?
3. What five risks could affect the implementation of the project and what mitigation measures would you recommend for each risk?