Risk management for a rural electrification project : a systems engineering approach

M.Ing.This research study is about evaluating the practicability of using systems engineering approach to rural electrification project risk management. The research was motivated by rural electrification projects in South Africa that have suffered planning, design or operational problems due to uncertainties at project site level. The dissertation begins by describing the rural electrification background in the first chapter. The process of electrifying rural areas, challenges, and achievements so far in South Africa are presented. The government target for universal access to electricity is also highlighted. The next two chapters address the theory of systems engineering, and project risk management as one of the elements of project management. The theory of systems engineering approach to risk management is then applied to a typical electrification project structure. The electrification project is viewed as a system, with risk management as a sub-system of project management. A case study is presented for a rural electrification project in KwaZulu-Natal that has experienced design and operational problems. A risk system is identified from work breakdown structure, and risk hierarchy framework is produced based on project life cycle cost model. Risks are ranked in terms of their impact and probability. The aim of the study is to understand the impact of each risk on general project risk, and risk mitigation measures that should be taken to address those risks. The research finishes by drawing a conclusion that electrification projects are complex, risks are manageable, and systems thinking can be successfully used to manage electrification project risks. Risk management must focus on the project as a whole, including operation and maintenance, rather than focusing at individual project stages