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www.concept.ntnu.no Current reality in Norwegian public investment projects Ole Jonny Klakegg Research Director Concept Research Programme
What do we need to invest in? Value [Million NOK] Current state Current develop-ment Securing the future Municipal buildings Health buildings Railway Airports State roads Municipal roads Water supply Waste water Waste disposal Energy production Energy distribution SUM: Source: State of the Nation 2010 (RIF – Association of consulting engineers)
Research into Current Status Ring 3 Ulven-Sinsen • 88 Projects subject to external quality assurance in Norway (2001-2007). Sample includes: • 29 Road and railway projects • 12 Building projects • 10 Defence projects • 51 Projects in total (58% of population) • Do we define and design major public investment projects well? Double track Asker-Sandvika Leopard 2 tanks New Opera-house Oslo
Well Defined? No! There is a lack of fundamental logic Result of analysis: fundamental logic in defining project objectives. N = 51 projects. Source: O J Klakegg, PhD dissertation 2010
Well Designed? No! They are not up to best practice Best practice reference: Logical Framework Approach. The number of projects meeting the best practice criteria. Total of 51 projects evaluated. Source: O J Klakegg, PhD dissertation 2010
Governance of Projects • The Norwegian State needs to invest in physical infrastructure • We have financial ability • But we struggle to find economically viable projects (few people to share the cost) • And we struggle to define and design the projects well
How do our projects perform? Result of 23 major Norwegian public investment projects finished after going through QA2. They reach objectives and deliver within approved frames. We see a high degree of professionalism in project management in all agencies with projects in this sample. Source: Concept Research Programme 2010
Actual cost compared to approved expected cost Average: -4% Results placed on the timeline according to finishing date of the project.
Result of detailed assessment OK Warning Stop Roads Railw Building ICT
Analyses and Reality Some issues dominate in analyses (based on 75 project analyses). Observations in real life show that reality is more complex (based on 23 finished projects).
Highlights of the Symposium Decision makers, doers and advisors: Joining forces to enhance utility of investments • 32 international presenters • 100 participants • By invitation from the Norwegian Ministry of Finance Want an invitation? Look at: www.concept.ntnu.no