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KUSILE, MEDUPI CONCEWED IN THE 20TH CENTURY, STRUGGLING IN WATER SCARCE 2.5T Not farfrom Johannesburg, set amid the corn and sunflower fields of the Highveld in Mpumalanga province, stand two unusuallythick and tall candystriped smokestacks, dozens of stout concrete support columns, and the tangled steel superstructure of the unfinished 4 800 MW Kusile coal-fired power station. About 3?0km northwest, spread across a stretch ofdry scrubland in Limpopo province, is the construction site for Kusile's unfinished twin, the 4 800 MW Medupi power station. More than a decade ago, at the turn of the 215t century, South Africa conceived the idea of building Kusile and Medupi, two of the four largest coal plants in the world. The proposal gained significant public prominence around the century's end when South Africa's bid to develop its own nuclear reactor design, and build several plants, was rejected by the global finance community. Medupi and Kusile, designed with advanced water conservation cooling and pollution control systems, and due to be completed by 20124 and 2015, respectively, at a cost of Sobn each, were greeted as both momentous and logical. Over the last several years, dawn has evolved into a gathering storm. Long construction delays and escalating costs, engineering challenges, and the intensifying riskofscarce water have pushed Kusile and its sister plant into the eye of atyphoon of economic, ecological, and social disturbances engulfing South ,tfrica. In so many ways, the troubled development of Kusile and Medupi, and the tumult enveloping South Africa's deteriorating financial and social condition, are not just mirror images of each other. The two plants, projected to be almost a decade late in completion and SEDbn or more over budget, are among the principal causes. The trouble is not simply a matter of managerial missteps. The vortex of disruption that envelops Medupi and KusileI reflects the clash between the economic and ecological operating systems o'ftwo centuries. Kusile and Medupi arguably represent the most prominent global examples of big projects that do not fit their time. Conceived in the resourcerich, more ecologically stable, and capital- abundant turn of the century, the two plants were viewed as reasoned answers to South frica's growing demand for electricity, and as evidence ofa new government's capacity to execute complex industrial projects. South Africa sees its global reputation as tied to completing the two plants. \"They must finish and they will finish," said Jacob Misimango, a 54year-old business executive in Emalahleni who is seeking permits to start an open cast coal mine outside the city, in part to supply fuel for Kusile. "These projects have drawn the world's attention. They have to finish. Why? "Number one. There is a shortage of electricity. The only solution is these stations. We have coal to fuel them. \"Two. It's important for our government to prove we can do this thing. Our national pride is at stake. Not being able to finish is demoralizing. We must prove we can finish. "Three. There is a lot of interest on loans that we have to pay back. We need to finish to pay back those loans." 1 Big ideas encountertumult But well overa decade after they were initially proposed, both plants, and their builder, are crashing into the project- debilitating limits of the resourcescarce, ecologically unstable, and nervous financial markets of the advancing 21st century. Said another way, the narrative of economic progress, expressed by gargantuan industrial projects and centralised management practices, is breaking apart under intense ecological pressure. "Medupi and Kusile are examples of large-scale mega infrastructure projects that countries see as the basis of a development model that started after World War II,\" said Janet Redman, director ofthe Climate Program at the Institute for Policy Studies in Washington, DC, and an authority on World Bank loan programs. \"Projects this large are seen as transformational. They cost a lot. They employ a lot of people. Their effects are meant to be big. But it's a model that doesn't make much sense now. By now, all of the six steam turbines at the Kusile power station, each capable of generating 800 MW of electricity, were supposed to be operating with water-conserving, air guality-presenring, state of the art fossil fuel-fired efficiency. The anticipated commercial opening of the mammoth plant was to be celebrated as a globally significant statement about a new democracy's capacity to think big, and prove that an African government can deliver fresh currents of electricity to growing cities and modern industries. Perhaps the original fiveyear construction schedule was too ambitious. Certainly, the initial estimate of Kusile's completed cost was too hopeful. Yet what greets visitors to the plant's construction site on the South African Highveld is a mega energy generation project that is setting new international standards for construction delays, cost increases, design and engineering conflicts, and ecological impediments. Last summer, Eskom formally opened the first 800 MW turbine at Medupi. In February Eskom announced the planned opening of the first 800 MW turbine at Kusile, scheduled in 2014 to open during the summer of 2016, was pushed back to sometime in 2018. Question 1 1,: From a project resource management perspective analyse some ofthe key problems highlighted in the case study and howthey could have been avoided. (10 marks)