Risk management competence and sustainability solutions in China
The awards were presented at the Investment Risk Management and Control Forum, a conference organised by the Association. The co-arrangement of the China National Project Excellence Awards is part of DNV’s ongoing commitment to contribute to the development of risk management competence and sustainability solutions in China.
The Three Gorges project conducted by China Yangtse Three Gorges Group received particular recognition, winning the 2011 National Project Excellence Special Award with a score of 93.63 out of 100. There were thirty seven other projects awarded including the Beijing-Tianjin Intercity High-speed Rail project which was built by Beijing-Tianjin Intercity High-speed Rail Co., Ltd.
Many of the award-winning projects have set world records, including the Three Gorges project, which is the world’s largest hydro-dynamic plant, the Hangzhou Bay Bridge, which is the longest sea-crossing bridge and the Datong-Qinhuangdao expansion project, which can carry 400 million tons of coal annually.
While the projects are diverse, there are some prominent common characteristics. The investment decisions are scientific, balanced and in legal compliance. The projects are also innovative and highlight energy saving and the shift to a low-carbon economy such as the Three Gorges Dam.
According to Zhang Hanya, Chairman of the Investment Association of China, these 38 award-winning projects are examples of project excellence applied to fixed assets investment during the “11th Five-year Plan Period (2006-2010).” Over this period, China invested RMB 92.29tlnin fixed assets with 25.5% growth annually. These investments have made a great contribution in ensuring the rapid and concerted development of China’s national economy and have also played a key role in countering the effects of the recent global financial crisis.
“It is a very big challenge to manage risks of all these massive national projects in China, particularly when there are evermore complicated evaluation criteria. However, huge costs can be saved if only 1% of the risks are well managed,” said Per Marius Berrefjord, Managing Director of DNV Sustainability Centre in Beijing.
Mr. Berrefjord delivered the keynote speech entitled “Project Excellence-Improved Risk Management of Complex Projects” at the Investment Risk Management and Control Forum. He noted that the award and the forum are strong evidence of the advanced development of project risk management in China. DNV also participated in the evaluation of the candidate projects.
In China, DNV has worked alongside Chinese government bodies, state-owned and private enterprises in the field of project risk management, as well as in the domain of sustainability solutions. According to Mr Zhang of the Investment Association, the evaluation of projects started in October 2010.
After strict examination and verification, the winning 38 projects were selected from 12 industries such as those of the railway, road, airport, bridge, water power, thermal power, iron & steel, machinery, petrochemical, etc, and from 16 provinces, autonomous regions and municipalities including Beijing, Tianjin, Shanghai, Guangxi.
Source: DNV