This is a team presentation, we presented, of our analysis on the "Channel Tunnel" (Euro tunnel) project, as our term project for the course "International Project Management & Professional Responsibility" of "Project Management" program.

1. Channel Tunnel
By Group 5
Ehidame Ibazebo
George Makura
Isaac Addai
Prashanth Akunuri

2. HOW DO YOU BUILD AN UNDERSEA TUNNEL TO
CONNECT TWO COUNTRIES BY BRINGING TOGETHER
PRIVATE FIRMS AND THE GOVERNMENTS OF THESE
COUNTRIES THAT HAVE DIFFERENT LANGUAGES AND
CULTURE?
2

3. Channel Tunnel
Project keywords
Political Support/Window of Opportunity
Public Private Partnership
Inter-governmental Cooperation
Innovative Engineering
3

4. Agenda
 Project Background and its context
 Research methodology
 Project challenges
 Analysis of failures and success
 Conclusions
 Recommendations
4

5. Project Location
5

6. Project Background
Previous Attempts:
 First time idea initiated
– 1802 – Albert Mathieu - a cross-channel tunnel proposal
 Involvement of Britain and France
– A 1974 UK-France Governments. backed Scheme was
cancelled in 1975
6

7. Project Background
1984 Proposals
Group Proposal Details
Channel Tunnel Undersea Rail  50.5km undersea Tunnel
Group
 4.5km span suspension
Eurobridge Suspension bridge with a roadway in an
Bridge enclosed tube
 21km tunnel between
Euroroute Tunnel artificial islands approached
by bridges
7

8. The Eurotunnel Group
8

9. Project Announcement
Announcement of
Project
Feb 1986.
Treaty of Canterbury
signed.
9

10. Project Objectives
Undersea rail tunnel linking Folkstone in the United
Kingdom with Calais in northern France.
Reasons:
Transportation
Boost Business and Tourism
Connect Britain with mainland Europe
10

11. Business Model
Public Private Partnership
BOOT:
Build
Own
Operate
Transfer
11

12. Cost & Finance
Cost Estimates
Construction costs (in £) 2.8 billion
Corporate and other costs 0.5
Provision for inflation 0.5
Net financing costs 1.0
Total £4.8 billion
Financing Plan
Equity £1.0 billion
Loans £5.0 billion
Total £6.0 billion
12

13. Project Stakeholders
The government of France
The government of Britain
Eurotunnel Group
Citizens of France
Citizens of Britain
13

14. Organizational Breakdown
Structure
14

15. Research Methodology
Evaluation Criteria
Project Management Knowledge Areas
Elements of Good International Project Plan
Success Factors for Public Private Partnerships
15

16. Project Challenges
Impact of Challenges on Tripple Constraints
14
 Engineering
12
 Financing 10
 Management 8
6
 Political Impact of Challenges on Tripple
Constraints
4
 Cultural 2
 Communication 0
16

17. Project Integration
PM Process Output Channel Tunnel
Group
Initiation Project Charter The treaty of Canterbury
Planning Project Management Plan Concession Agreement
Org. Breakdown Structure
Work Performance Information
Executing Change requests Change control procedure
Project Management Plan Updates
Project Documents Updates
Change requests
Monitor & Control Change requests status updates Intergovernmental Commission
Project Management Plan Updates
Project Documents Updates
Final Product Handover ceremony
Closing OPA
17

18. Scope & Procurement
Scope Item Details Responsible Fixed price plus incentive fee
Agent (50%,30%) saving, overrun
Target works Tunnels TML
£699 m
Lump sum Work
Terminals TML £568 m
Related infrastructure
Fixed equipments
Electrical
&mechanical works
Procurement Locomotives £113 million
Items Shuttle trains TML
18

19. Cost Management
Channel Tunnel Cost Performance
120%
100%
80%
60%
40%
20%
0%
Initial Estimate Cost Overrun Total Cost
19

20. Human Resource Management
Item English Side French Side
Recruitment  50% travelling men  95% from depressed
 housed in a temporary camp region
 Recruited from depressed  Part of employment
mining regions regeneration
 Help with job at end of
project
Policies  Smoking & drinking not allowed  Smoking & drinking
 Poor safety record allowed
 More organized union
structure
Problems  Senior managers did not get  Harmonious atmosphere
along
20

21. Time Management
Milestone Planned Date Actual Date
Project Charter (Treaty of Canterbury) 1986 Feb-86
Commencement of Tunnel Boring 1988 Jun-88
Completion of Boring 1990 1990
Opening Ceremony May-93 May-94
21

22. Communication Management
Boring Phase CHAIRMAN
No Unified Structure CHIEF EXECUTIVE
INTERNAL QUALITY TECHNICAL
Fitting Phase AUDIT COMMERCIAL
ASSURANCE ADVISOR TO
DIRECTOR DIRECTOR
DIRECTOR TML BOARD
CONSTRUCTION ADMINIST- TRANSPORTATION
Unified Structure FINANCE
DIRECTOR
MANAGING
DIRECTOR
LEGAL
DIRECTOR
RATION
DIRECTOR
& ENGINEERING
MAN DIRECTOR
TRANSPORTATION SYSTEMS
& ENGINEERING GROUP
FRANCE
UK DIRECTOR transport system design
DIRECTOR
CONSTRUCTION CONSTRUCTION rolling stodk design
rolling stock procurement
CONSTRUCTION CONSTRUCTION transport system contracts
GROUP UK GROUP FRANCE commissioning
building/civils design building/civils design transport system
tunnels tunnels procurement
terminal terminal
precast factory precast factory
m & e supervison m & e supervison
source: Anderson (1992)
22

23. Risk Management
Post-mortem Risk Impact Matrix
Risk Likelihood Impact Rating
Engineering high High High
Communication high Low medium
Financial high High High
Safety high High Medium
Political Medium Low low
23

24. Quality Management
Ishikawa Diagram Analysis for problems in Tunnel Environment
Man Machine
Lapsed Safety Measures
Boring Machines
Not Paying Attention Failing
Causes of Issues
Encountered
Outdated Engineering
Low Quality Material
Study
Material Method
24

25. Summary of Analysis
Evaluation Based on 9 PM Knowledge Areas
Knowledge Area Points
Risk Management 2
Time Management 3
Scope Management 5
Cost Management 2
Human Resources Management 4
Procurement Management 5
Integration Management 5
Communication Management 2
Quality Management 4
Total Points out of 45 32
25

26. Summary of Analysis
Evaluation Based on Good International Project Management Plan
Criteria Points
Organizing the project in coordination effort and flexibility 15
Highlighting areas of issues and risks 10
Building collaboration and commitment among team members 20
Communication between headquarters and local offices 10
Application of the nine knowledge areas 15.5
Total Points 70.5
Source of Criteria: PMGT 428 (Centennial College) 26

27. Summary of Analysis
Measurement of the project against key success factors for PPP’s
Key success factors include: Channel Tunnel Grading
1. Careful planning of PPP project ✔
2. Solid revenue and cost estimate x
3. User willingness to pay and communication plan x
4. Extensive feasibility study with use of PPP experts ✔
5. Compliance with contractual agreement ✔
6. Appropriate Legal and Regulatory Framework ✔
7. Strong Institutions with appropriate resources ✔
8. Competitive and transparent procurement ✔
9. Mitigation and flexibility in managing macro- risks ✔
Source of Criteria: PMGT 428 (Centennial College) 27

28. What Went Wrong?
Design problems not identified at the start
Strict safety measures imposed by the IGC
Dispute over costs between Eurotunnel and TML
Delays from the parliamentary process
Financing difficulties
TML had clear conflicts of interest
Eurotunnel was created late in the process
Fragmentation of funding institutions
Poor risk analysis
28

29. What Went Right?
Strong political support by both the British and French
governments
Excellent management of cultural differences
Strong commitment to task in terms of completing the
tunnelling
Excellent fund raising strategy to finance the project
29

30. Conclusions
Political support provided a window of opportunity
There was not enough time for risk management plan
Risks and challenges were dealt with iteratively
Project did well based on PPP factors
Cost was the only hard constraint significantly affected
Project was successful to a large extent but the cost remain
to be paid
30

31. Recommendation for Future
Projects
Review past engineering studies
Protect the private partner against delays in political
decisions
Use conservative forecasting approach
Do detail risk analysis
31

32. Thank You
Questions & Feedback
are welcome
Presentation template from: www.presentationmagazine.com
32