Capital Projects & Infrastructure

Infrastructure affects economic development in very certain ways, from location of industries, property valuation, and cost of doing business, security concerns, and the general improvement in HDI (Human development index). Yet, infrastructural inadequacy remains one of the critical failure points in most parts of Africa. Because resources are scarce, amongst other reasons, to accelerate the level of capital growth, capital projects require deep and long-term evaluation of the extent of externalities the investments are likely to generate before commitments on capital project investments. The extent of planning and early preparation results into seamless or hassle fraught execution, and given the complicated nature and long-term gestation characteristics of capital projects, budget overran, failures, and set backs are familiar features of capital project implementation.

Therefore, the reinforcing pair of rigorous early preparation and project execution integrity constitutes the pillar on which project success stands. Capital project management should not only focus on early preparation and execution integrity embracing the major project components but must seek new ways of evolving sustainable and cheap project financing suitable for each project and community. Concerning the public sector capital projects, the public perception of the failure rates of public capital projects have affected enthusiasm and participation of the public in capital project development and a complete paradigm shift is required to power that enthusiasm. An “open book” transparent approach to public capital project management could be the elixir to advancing a new dawn in capital-project growth stimulation. Clearly, new and innovative ways in providing the much-needed finance should be on the front burner, capital project packaging must now under go more stringent integrity tests, and a new culture of timeous project delivery imbibed. Project benefits require articulation that speaks to the overriding and urgent benefits of the communities. A complete paradigm shift beacons and requires new project structures and financing mechanisms, acid test integrity, packaging, and execution mentality