Hinkley Point Nuclear Power Plant
In the news this morning (March 7th 2016) is a great example of how projects are delayed (from even starting) due to stakeholder and financial issues.
Here we have a project in the UK national interest (the provision of electricity to keep the lights on) with a key stakeholder (the UK Government) very keen for it to happen – even paying over the odds for the electricity to be produced.
Another stakeholder, EDF, has to decide if it can afford its part of the £18 billion required. The uncertainty surrounding this has caused the resignation of the financial director, who is under pressure from a third stakeholder (the french government) for the project to proceed.
The uncertainty has caused a drop on the EDF share price – making it vulnerable to take-overs. An example of how a project can bring a company down if not managed correctly!
The article states that the project is “plagued by delays” however I would argue that until the project is actually financed and the key stakeholders are in agreement, then real work on the project cannot start. Arguably the delays in this “Initiation Phase” can allow for a more detailed and better planned “Implementation Phase” – so lets hope that this is happening before the UK runs out of electricity!
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