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Structuring of Public Infrastructure Mega Projects

SECOND EDITION                                                            

Leo Penović 

HEP Development Of Multi-Purpose Real Estate Project Ltd

Zagreb, Croatia
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Abstract

In his presentation, the author will show structuring of infrastructure mega projects in Croatia highlighting identification of stakeholders, program owners, program beneficiaries and program manager. Presentation will also highlight technical, financial, legal and structural frame of a public project.  As a case study author presents structuring of infrastructure mega project “Protection, regulation and utilisation of river Sava from border with Republic of Slovenia down to the city of Sisak“. Total estimated value of the whole project is 1,4 billion €.

Key words: Stake holders; program owners; program beneficiaries; program manager; structuring

  1. Introduction 

Water management solution of the river Sava which covers the territory from the border with Republic of Slovenia downstream to the city of Sisak was designed and developed during the nineteen seventies (after the flood in 1964). This system of flood protection was designed mainly for the city of Zagreb, and secondarily to protect upstream and downstream areas. Unfortunately the system was never finished, so designed benefits were never fully reached.

Zagreb and Zagrebacka County as well as Sisacko Moslavacka County are facing a series unresolved problems: unfinished flood protection system is not able to handle increased volume of flooding and increased frequency of flooding which was clearly demonstrated in the flooding of flood basins in 2010.  The availability of water supplies, the deepening and instability of Sava’s riverbed, and reduced supply of drinking water in summer, are mainly consequences of the construction of several hydroelectric power plants along the river Sava upstream in Slovenia.

Therefore the Croatian government decided to Protect, Regulate and Utilize river Sava and it’s basin from Slovenian border downstream to the city of Sisak.

The program approximated value on the basis of currently available data is 1,4 billion €.

  1. History 

This program has a long history, which starts in the late 19th century when Nikola Tesla spoke about a possible solution of regulation and utilization of the Sava river, and it lasts to nowadays. During the past 50 years there were a few attempts to start this program, but without success. Failures were caused, mainly, because of absence of program leadership, program management and in secondly, by undeveloped mechanism of harmonizing stakeholders’ interests.

Third cause of failure of the Program was undefined ownership of the Program. In each of those attempts energy the company was the leading owner of the Program from whom it was expected to invest between 70 and 80 % of all Program value, although it was obvious that rational investment in energy production is between 400 and 500 million €.

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To read entire paper (click here)

Editor’s note:  Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. This paper was originally presented at the 27th IPMA World Congress in Dubrovnik, Croatia and included in the Congress Proceedings, October 2013. It is republished here with permission or the authors and congress organizers. 


About the Author

flag-zagreb-croatiapmwj18-jan2014-penovic-PHOTOLeo Penović

Zagreb, Croatia

Born in August 1963, Leo Penović graduated in 1988 from the faculty of civil engineering in Split. He became a member of the Croatian chamber of architects and engineers in 2002. Since April 2011 he is a Certified Senior Project Manager IPMA Level B. Since 2012, Leo has been program director of the “Program of Protection, Regulation and Utilization of the River Sava from border with Republic of Slovenija to the City of Sisak”, and CEO of HEP Multipurpose Real Estate Projects based in Zagreb.  He has also been a Lender Supervision for Skopje City Mall – Client Raiffeisen SHA – since 2011.  He was previously supervisor of design and construction for municipality communal waste management centre Marinšćina Rijeka Croatia and communal waste management centre Kaštijun Pula Croatia. He conducted additional technical due diligence for Skopje City Mall for EBRD.

He joined TriGranit in 2006, firstly in position of project manager for Ciovo project, where there was planned to develop a resort with hotel and tourist villas. Project was planned as 36.000 m2 development on 9 ha. Total value of investment was budgeted as 80.000.000 €. From second half of year 2007 he joined TriGranit team for Arena Centar development of shopping center in Zagreb, where he took position of project manager from beginning of year 2008. It was development of shopping center of 180.000 m2 GBA, and 60.000 m2 GLA, total value of investment is cca 220.000.000 €.

During 2003 – 2006, he worked for contractor company Brodosplit Inženjering as project manager on various projects; during 2002 – 2003 renovation of old bridge in Mostar; during 1997 – 2002, working for construction company Eurodom Split on these jobs: project manager on project of renovation of hotel Lav in Split. Total value of investment was predicted in that time more than 30.000.000 €. (2001-2002); project and construction manager and head engineer on building site of project „Lovretski Dvori“ in Split. Total area of build space was 22.000 m2, and value of project was 15.000.000 € (1998-2001).  Leo Penović can be contacted at email: [email protected]