International Financial and Contractual Management Project

This report provides a comprehensive analysis of an International Financial and Contractual Management (IFCM) project, specifically focusing on a project undertaken in Turkey within the framework of the Energy Community of South East Europe (ECSEE). The report begins with an introduction to the ECSEE and its objectives, followed by an executive summary highlighting the project's goals of increasing power transmission capacity and integrating renewable energy. The main objectives of the project in Turkey are outlined, emphasizing the establishment of a stable market and regulatory framework to attract investment, ensuring a secure energy supply, and promoting environmental conservation. The report then delves into the project's execution, including pre-project activities, stakeholder analysis, and post-process analysis. It explores the project's supply chains, procurement processes, system hierarchies, and various sources of project finance. The analysis includes vendor-financed projects and project relationships within the context of the ECSEE framework. The report concludes with recommendations and a summary of the project's successes and challenges, offering valuable insights into the management of international financial and contractual projects.

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INTERNATIONAL FINANCIAL AND CONTRACTUAL MANAGEMENT
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Table of Contents
Introduction................................................................................................................................3
Executive summary....................................................................................................................4
Main objectives of the project in Turkey...................................................................................4
Project execution........................................................................................................................5
Pre project..................................................................................................................................6
Stakeholder analysis...................................................................................................................6
Post process analysis..................................................................................................................8
Project supply chains................................................................................................................10
Procurement and its elements...................................................................................................11
System hierarchies...................................................................................................................11
Sources of project finance/Project financing...........................................................................13
Vendor financed projects.........................................................................................................14
Project relationships in context................................................................................................15
Recommendations....................................................................................................................15
Conclusion................................................................................................................................16

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ENERGY COMMUNITY OF SOUTH EAST EUROPE APL6 PROJECT TURKEY
Introduction
It is an international organization established between the European Union and a number of
third world countries to extend the European Union internal energy market to southeast
Europe and beyond. Contracting parties commit themselves to implement the relevant
European Union energy, liberalize their energy markets and to develop an adequate
regulatory framework.
It aims at establishing a pan-European energy market by extending the energy of European
Union to the territories of third world countries. Its framework covers legislation in the fields
of energy, environment and competition of the EU legislation. European Union now includes
legislation in relation to security of supply, energy efficiency, oil, renewable energy and
statistics (Gökgöz et al, 2018).

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The parties involved in the project are the European Union and nine contracting parties which
are Moldova, Albania, Montenegro, Bosnia and Herzegovina, Serbia, Kosovo, Ukraine,
North Macedonia, and Georgia.
A timetable to implement the project has been developed as follows;
By July 1 2007 implement the two EU energy market directives and the regulation on cross-
border network access.
1 January 2008 onwards liberalization of the electricity and gas markets for all non-
household customers.
By end of 2011 reduction in the sulphur content of certain liquid fuels.
By 30th June 2013 complete national renewable energy actions plans and by 1st January 2014
transpose the renewable directives and to have thereby a binding share of renewable energy
as part of the overall consumption in 2020
1st January 2015 liberalization of the electricity and gas markets for all customers
By 1st January 2017 implement regulation on guidelines for trans-European energy
infrastructure the electricity and gas markets
By 15th October 2017 implement directive on energy efficiency and set an indicative national
energy efficiency targets
Executive summary

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During the establishment by the energy community of South East Europe of the 6th adaptable
program lending program lending they had one goal of increasing the capacity and reliability
of the transmission of power system in the country of Turkey. The other objective was to
have at least an integral renewable energy in the entire system. This project was established
under two major components. The first component of the project deals with the transmission
system that strengthens the expansion of energy to different places. This is done through the
creation of some small sub project investments that boost the transmission the power system.
The successful completion of this project can be traced back to the procedures that were
followed in the execution of the project.
Main objectives of the project in Turkey
This was another project in series of other earlier completed projects on the Adaptable
Program loans. This project was established to help the counties in South East Europe due to
their association with the commission of Europe that was developing a regional market for
their energy the First project was done and named the APL1 which became integrated in the
internal market for the energy. This led to the establishment of Energy community of South
east Europe (ECSEE).The main reason why ECSEE was established was due to below
reasons;
 To bring a stable market and regulatory framework that will be capable to attract a lot
of investment in the region in terms of power system and gas networks. This will
translate that each region in the state covered will be able to enjoy the services of the
efficient and continuous power and energy supply which gear on the developments in
the regions.
 There was need to have an integral regional market in South East Europe.

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 To ensure that there is tight security in the energy supply (Zeng et al, 2020)
 To ensure there is environmental conservation in the area the system is implemented.
Project execution
In the execution of the project by the Turkish government ensured that there were some
measures put in place to mitigate any of the key risks that may be experienced in the course
of the phases of eth project. The Turkish government could have aimed to contracting some
of the local trusted companies to offer a real life experience in project regarding the
sustainable energy in the country. The Turkish government was able to ensure that everything
worked in accordance with the specifications that they had agreed with the ECSEE. The
specifications were to ensure that all the required levels of the quality, health and safety of
the citizens were followed. The Turkish government ensured that the activities involved in
the project of distribution of sustainable energy through its collaboration with ECSEE. This
made it possible for the project to be successful for fully integrating the Turkish sustainable
electricity. The cooperation had led to the interconnection with the national electricity
market.
Pre project
This is the project phase that is associated with encompassing all the duties and tasks between
the project stages of initiation to a more detailed design, In this important part of the project
execution, the analysis is conducted on all the risks that are associated with the project.
Turkey being the leading country with a considerable energy potential, it has led to the
investment participating by both public and private entities. The participation is done through
the compliance with the environmental sustainable measures. Turkey has been on the

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forefront to establishing wind energy. This has led to support for the establishment of a high
voltage transmission lines and networks to be able to sustain the growing demand for the
supply of energy.
During the early phases of the project, the government of Turkey made some significant
decisions for the successful completion of the project. This process mostly constitutes a well
detailed framework for a project planning which also entails the project scope definition. The
project scope in a project management may be referred to be the process or procedures that
are used in the selection of the projects. The way the pre project was conducted will lead to
the reduction or increase to the cost of running of the project. The Turkish governments
implemented some features on how the activities of the project were to be conducted which
lead to the success of the project between the Energy community of South East Europe.
Stakeholder analysis
Stakeholders are the process of assessing and checking the system and most prevalent
changes as they relate to interested parties (Aragonés, 2017). Most of this information that is
obtained is used to ascertain how the interests of these key stakeholders should be addressed
in a particular program, project or even a policy. Stakeholder’s analysis is mostly used by the
project managers and even the product managers of the company to undertake some their
duties in the company. Stakeholder’s analysis plan is mostly done during the preparation
phase of a project. It’s prepared to understand and assess the altitudes of the stakeholder in
regard to possible changes in the project. It also examines the stakeholders vested interests
that may make the project delay in its execution.

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In most cases, conducting stakeholder analysis changes from one organization to the other.
Aforementioned, there some common procedures that are followed by every organization that
decides to conduct stakeholder analysis. While conducting the stakeholder analysis, it’s
recommended that you determine first on the key stakeholders that you want to include in the
project. This means that you can come up with at least many potential stakeholders where
you now choose the one you desire to join you in the product development in the organization
(Broman, 2017).For instance, some of the most popular stakeholders a company can choose
from include the finance, marketing, procurement, consultants etc. The body of ETF provides
some inputs to the EU policy which consists some important matters relating to sustainable
Energy.ETF has been supporting Turkey in its project out rolling out affordable sustainable
energy to its citizens.
Several changes have been witnessed in the APL6 project from the key local stakeholders
especially in the country of Turkey. These are some of the key stakeholders who take part in
most of the activities of pertaining the project. This makes the project make steps in the
project and realize some of its set strategic frameworks. Most of the stakeholder’s
participation in the project mostly comes from Turkey, Albania, Herzegovina, Albania and
Serbia. Stakeholder analysis comes with all the below benefits to the organization;
Identification of the key supporters and role players in the business organization (Kitchin,
2019). When a business organization approaches a particular executive or a professional to
help in the organization, the business get some more skills added to their manpower which
translates to successful achievement of organization goals. Stakeholders need to be included
in the project as early as the beginning of the project taking place so that they can start with
all the activities being undertaken in the business. This sounds and is a good thing for very
organization that is looking forward to maximizing its profits in the long and short run of its

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operations. However, the business should conduct an intensive and efficient research and
stakeholder analysis so that it can only include only role players in the organization.
To obtain an early alignment from all the key stakeholders on the organization objectives and
plans. Right from the determination of the main and most important stakeholders to be
included in the business through the successful stakeholder analysis, the business gets them
selected for the kick off. They come on board and participate in the meetings with the
organization to comprehend the goals and objective of the business. This is very important
for the business as everyone including the project stakeholders start the project activities with
a clear understanding of the expected results and how each is supposed to participate to
realize them.
Stakeholder analysis helps in the addressing of several issues in the beginning of the project
(Lehtinen, 2020). This is done to avoid some of the stakeholders thwarting the process of the
project. It makes the organization understand the person that will actively participate in the
realization of project goals.
The South East Europe countries had been having an intention to come up and implement the
all round safety measures to safeguard the affordability of the customers in the even the
existing tariff changes or increases. This was introduced first in the Athens memorandum.
The other imperative thing is to ensure that the majority of the public responsibilities is taken
into consideration to ensure full participation of the process (Hatipoglu et al, 2016).
Post process analysis
Post process analysis is very important just like the completion of the project itself (Meredith,
2017) A project may come to an end, just not because it has ended successfully but may be
because of the failure of the project. This means that the project will succeed depending on

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the post implementation of the project review. This means even if the project to bring close to
citizens of Turkey a sustainable energy, the government was not only cooperating with
ECSEE to establish quality energy supply method but it had an objective of ensuring that the
environmental conservation was achieved. Its goal was not only to bring sustainable energy
closer to the citizens but also to ensure the surroundings remained save. This was one of eth
measures of the success of its collaboration.
Project ingredients-the inputs/ reward strategies
These are project parameters that arise mostly from the overall project goals which are done
to meet its objectives (Kerzner, 2018). Some the essential ingredient of a project include the
below;
It’s wise that the project team is able to see a forest out of trees. Before the start of the
project, the project team, clients and stakeholders should be able to know the objective of the
project.
There was a launching of the law pertaining electricity in the year 2001 that brought the
sector to a different efficient generation.
There was an establishment of independent regulatory authority

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Project supply chains
Energy cooperation between the Energy community for South east Europe and the country
Turkey has been made possible due to the geographical location of the country. The country
of Turkey has a very favorable location as it’s a home to the world’s largest hydrocarbons.
On the same note, the neighbors of Turkey are among the oil production super powers who
command at least 70% of the world oil (Vassiliou et al, 2018). Aforementioned, accessing the
energy reserves by the angry community for South East Europe becomes easier and thus
Turkey gets the advantage of its location. It has been note that from this energy cooperation
between the Energy communities of south east Europe, has led to handsome and significant
payoffs in the political sector of the Turkish government. However, there are challenges and
prospects of introducing the cooperation between the EU and the Turkish government. This
has led to the drive of international politics in energy being led by the nationals instead of the
collective agreements and interests. This hampers the widening and deepening the energy
cooperation to a greater level. When this happens, it brings a very huge negative impact in the
membership of Turkey in the EU. It also leads to undermining of Turkey energy security
which leads to unstable energy to the country of.

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Procurement and its elements
Procurement management has always been having a greater impact in the management of
resources of a company or a country at large. The procurement system in the country of
Turkey is managed by a public procurement Act No 4734 which was entered in action from
year 2003.this has spearhead the creation of a modern operation system in procurement in
line with the international procurements standards
In the country of Turkey, procurement especially for essential services like energy has a big
share of at least 12% of the country’s GDP. The legal framework that has been in use with
the cooperation with the ECSEE contains the pre commercial procurement, following of
procurement procedures, following technical descriptions and specifications, award of the
contract and finally the participation of SMEs.
System hierarchies