As daily power-cuts become the new normal in Zambia, effects are being felt by households, farms and small businesses as well as vital growth sectors such as mining. Zambia’s dependence on hydro-power is a well-known risk factor of power generation. At this time of year, as temperatures and humidity gradually rise, the whole of Zambia, from the cramped office workers in Lusaka to the heavily rain-dependent farmers across the country, eagerly anticipate the much-needed relief brought by the start of the rainy season. This year there is a particularly heavy sense of urgency due to the country’s deepening power crisis, made worse by the delayed onset of the rains. The anxiety is reflected in the increasingly worrying reports on the declining water levels in Kariba Dam, the world’s largest man-made reservoir. The dam is the single biggest power source for Zambia and neighboring Zimbabwe. Future efforts should focus on growing and diversifying generation capacity to keep pace with Zambia’s economic growth”, Commented by Senior Project Manager. 

Requirements:

A. As a Project Management Consultant appointed by the Zambian Government to analyze this project, identify five sources (risk factors) and specific risks surrounding the hydropower projects.

B. Describe the uncertainty risk on a Power Generation Project and briefly illustrate the mitigation measure for the identified situation.

C. What is a Real Option in Risk Management? Cite an example. 

D. Illustrate the characteristics of uncertainty on a project life cycle with the aid of a diagram.

E. Briefly outline four (4) technical advantages of using a Delphi Technique as a risk identification and analysis tool.