ITLS 6500: Decision Making for Mega Projects - Quiz 2 Analysis

This assignment provides comprehensive solutions to ITLS 6500 Quiz 2, focusing on decision-making for mega projects. The solutions address three key questions: Firstly, it analyzes the risk management issues of the Sydney Light Rail, identifying risks such as fatalities, procurement challenges, and contractual risks, and proposes solutions. Secondly, it examines governance failings within the Sydney Light Rail project, including cost overruns and employee issues, and recommends improved approaches. Finally, it explores the use of private finance for accelerating Stage 2 of the Sydney Metro Western Sydney Airport project, emphasizing the benefits of private investment and highlighting the importance of aligning project goals with private investor interests. The solutions are supported by evidence and aim to provide concise answers within the specified word count, offering insights into risk management, governance, and financial strategies in the context of large-scale infrastructure projects.

Answer 1
While operating in the general Auditor General team, it would be the duty of every member to
adequately adjudge the safety of the operation of the Sydney Light rail. The light rail would be
commuting with on rail, both on the road and underneath the ground. There are various risks that
are associated with the operations of the Sydney rail even after it has been opined as one of the
safest modes of transport. The nature of the risks have been separated to catastrophic risks,
monetary risks and infrastructural risks. Inclusion of a proper risk management plan helps in
evaluating the nature of the risks and thus can help in mitigating the same. It has been found out
that the Sydney light rail helps approximately 13,500 passengers on an hourly basis. The
capacity of each vehicle is approximately 450. It is evident that numerous people are found to be
commuting on the streets beside the rail of the Sydney light vehicles. The risk that have been
identified are as follows;
1. Risks of fatality: Numerous people use the roads, it is a common medium of
commutation. Furthermore, the number of four wheelers and bikes fill the roads. The
light rail vehicles add up to the clutter that the busy roads are already subject to. Thus,
coming in contact with the vehicle might lead to fatal consequences in form of fatalities.
The highest degree of risk associated to the operations of the rail can be experienced in
cross walks road intersection. The vehicles can gain considerable speeds up to 70 km/h
and thus have high chances of colliding with people and the other vehicles.
2. Procurement challenges: The complete construction of the rail tracks across the country
was supposed to be completed before the state elections of 2019. However, there are
delays that are being faced in the same and the final completion of the project is now
scheduled after the 2019. There have been disputes between Ausgrid and Acciona over

the commutation of utilities. Furthermore, the proposed budget for the whole budget
crossed the proposed A$ 1.6 billion mark.
3. Contractual risk: The latter resulted in loss of contracts with various suppliers of the
construction material required for procurement of the final project. This resulted in loss
of the contract and lead to further chances of delay.
The above issues can be solved by setting perimeters encompassing the rail tracts and effectively
marketing the value proposition that would help in attracting potential investors and will help
develop suppliers.
Answer 2
There are various grounds on which governance can fail. Some of the most effective ways to
measure the rates of failure of the governance is on the grounds as assessment of the impact,
systematic failure, market failure, failure regarding capitalism and structural failure. One the
most recognisable aspect of failure of governance of the transports for NSW Sydney Metro West
team is in terms of the costs that are deemed to be on the verge of rise. It has been estimated that
the costs associated with the operations of the NSW Sydney Metro West are likely to touch the
A$ 20 billion mark. The latter can be considered as an expense that can be considered way above
the cost that was estimated at the time of procurement of the project. Thus, it can give rise to
various other forms of failure of governance, such as unfavourable rates of pay of the employees
and privatisation of the shares of the company. Furthermore, layoff of the employees has been
detected as yet another type of failure of the expenses of the operations of the NSW Sydney
Metro West team. Members of NSW Sydney Metro West are subject to risks of termination as
the members are faced by risks associated with sustainability in the company. Along with the
aforementioned points of failure of the governance, the implications can lead to failure of

satiating the needs of the stakeholders as a whole. As the company is subject to increased amount
of cost along with the fact that the procurement of the project will take longer than expected, it is
likely that the returns are deemed to be unfavourable as far as the stakeholders are concerned.
Thus, this can lead to potential problems of attracting the stakeholders including the investors
and employees. Furthermore, it can be said that the implication can lead to unfavourable
expenditures from the part of the company. The increased amount of expenses will lead to
insufficiency of capital which will lead to the inability to pay off the employees. There might be
situation which would result in loss of jobs as a result of the inability to provide adequate
remuneration and privatisation. The delay in completion of the project can go down further. In
the aim to mitigate the issues the company should try to highlight their efforts in the ministry of
finance of Australia which could possibly help in attaining backup capital that the company can
use to speed up the processes and mitigate the possible governance issue that have been
highlighted.
Answer 3
The nature of private investment is such that it can boost the efficacy of the programs that would
otherwise be stagnated if they were reliant on private investments and funds. The New South
Wales monetary fund can generate various forms of investment form private investors by
highlighting the efficacy of the programs and the benefits that the state will be subject to once
the project has been completed. Completion of the Sydney Metro Western Airport will lead to
better commutation in the city. The benefits such as the betterment of the employees will help
the treasury in realising the importance of the ultimate goal of the company. Projects as are likely
to get the nod from the ministry of NSW. Gaining association with the projects are likely to turn
out to be profitable for the private investors. The valuation of the share of the company are likely

to be favourable in the long run that is backed up by the aim that is aligned towards the
achievement of corporate governance. The trends in the market show that there is going to be
rise in the number of people who are likely to travel use the metro services. The latter is likely as
the prices associated with travelling in such forms of transportation is low. Hence, the services of
the same are aligned towards the achievement of the goals of getting accepted by the customers.
Thus, the favourable implications from the part of the company will help in producing
favourable returns for the investors who will invest in the project. The possible failure of the
project in a catastrophic nature will have negative implications on the project. The implications
of the same will lead to positive responses from the commuter which is likely to result in
favourable outcomes from the part of the company. The successful implementation of the
process will speed up the nature of the process of commutation which will be treated as a
corporate social responsibility from the part of the company.
Answer 4
The concepts of movement and framework was developed in order to determine the amount of
people moving to and fro from one location to another. It is a system that was developed in order
to ensure proper monitoring the number of people on the roads of Australia. The framework that
defines, factors and such as movement and place framework determine the nature and the role of
the people of a state. There are various effects of a mega project on then community. One of the
most recognisable effects of the mega projects are one the environment. Curing the phase of
operation as well as the phase of operation of the project, radiations and emissions are released
by the projects. Furthermore, it produces some form of by product that may have adverse effects
on the environment. It can be said that procurement of a project may have implications that are
productive for the community. Projects such as construction of bridges, rail facilities and

creation of community centre help in providing sustainable services to the society. It also helps
in ensuring that a company turns out to be productive as a result of the success of the project.
Furthermore, the liveability quotients of the city is also determined in accordance of the
availability of adequate infrastructure of a city. Availability of basic amenities in the form places
to get groceries, stations to travel to from, gymnasiums etc., help in satiating the needs of the
consumers. While implementation of the mega projects, the aforementioned factors should be
kept in mind. The effects that the projects have one the people of the state, the effects on the
environment, the role that is plays in making the places liveable and the nature of response of the
people and their attitudes towards the same help in development of the community as a whole.
Successful project are able to balance between successful implementation of the strategic goals
of the project, provide services to the community and contribute to the sustainability of the
environment. Implementations of the plans from the part of the minds behind the project help in
determining the nature of response of the regulatory bodies and government of the state. Thus,
creates benchmarks in terms of achievement of the community and helps in attainment of new
investors who will propel the viability of the future projects. Acceptance from the government
and the consumers helps a company in the attainment of the objectives of corporate social
responsibility and the companies ensure acceptance.
Answer 5
The approach of procurement of a project is responsible for the successful implementation of the
project. The viability of the project is determined by adjudging the scope of the approach of
procurement of the project as a whole. Both the north east link and the WestConnex are under
procurement. It has been found out that the approach for procurement of the North East link is
highly different from the procurement approach of the WestConnex. The budget for the

WestConnex stands at approximately A$7.2 billion. The project will supposedly help in reducing
the congestion of the roads between Victoria and the city west link. The project can be
considered more organised the north east link. The project is separated into three stages. In the
stage one of the procurements, the operations will involve activities that are more focussed on
widening the Motorway. The extension of the road will also take place during this stage. The
next stage that is the stage 2 of the project will involve extension of the M5 motorway till St.
Peters. The final stage of procurement will involve the link between St. Peters and Harefield.
This will lead to better mobility between the two places. This particular project is organised and
systematic and mainly focusses on extension of the road with the ultimate aim to increase
mobility between the said place, the project has recently been closed. While both the
procurement approaches are traditional there lies difference in the actual implementation of the
projects. The north east link will act as a freeway that will be placed at Springvale road. The aim
behind creation project is to increase the capacity of the road. The latter will be achieved by the
addition of 6 lanes. It will enable increased commutation abilities. Furthermore, at the latter
stages of the project, tunnel would be procured under Bullen. The tunnel will be in the form of
underground passages that will connect Bankia Street with Manningham road. Additionally, a
connection road wit h Lower Plenty Road, the link would run parallel to Greensborough
highway. The latter is supposed to stay open for the local commuters. The final budget of
completion of the mega project will be determined after approximately one hundred days of
commencement of the project. A sum of around A$ 110 million has been contributed to the
project. The project is supposed to be completed by the year of 2027.