| Abstract | Hanoi capital has been seen with a rapid urbanization pace and a high socio-economic growth
rate. In order to hit an increasing demand for electrical power from such rapid development,
as well as municipal power demands from residential districts in Hanoi area, Hanoi Power
Corporation has kept investing in developing and modernizing of the city power networks
with hundreds kilometers of power transmission lines and many 110 kV substations.
Hanoi Power Corporation has made a lot of efforts to make certain that projects are
effectively contracted for, completed on time and within budget, and comply with all project
specifications for many years. Especially, all projects stated in Decision no 4351/QD-BCT by
the Ministry of Industry and Trade for “Hanoi Power Development Planning for the period
2011-2015 have a total value more than of USD 800 million, with prospects to the year 2020
in trends of modernization, efficiency and sustainability.
Renovation and upgrading of the existing obsolete electricity distribution system of Hanoi
city have required major funding resources along with considerable operation and
management. Therefore, effective management of projects has become one of the most urgent
requirements for Hanoi Power Corporation. Effective management of a project may bring
benefits not only from timely satisfying the increasing power demand resulting from onschedule
completion of the project, but also from money saved during the project
implementation.
There are three main criteria always considered during evaluating the success of project
management: time, cost, and quality. Poor management may cause not only behind-schedule
execution/completion of the project, but also greatly increase
of costs to the project owner. In fact, behind-schedule execution and cost increases are two of
the biggest problems existing in project management of Hanoi Power Corporation. This has
been negatively affecting the company’s benefits as well as its customers.
Improvement of the effectiveness of project management in Hanoi Power Corporation project
can only be achieved by improving the legal framework, solving problems during
implementation at Hanoi Power Corporation and at level of project management units, and
providing capacity building via training. Some solutions and recommendations are given to
Hanoi Power Corporation. |