Assessment of Project Procurement Practices: The Case of Ethiopian Electric Power, Electric Network Reinforcement, and expansion Project. By:
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Date
2020-06
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Addis Ababa University
Abstract
The objective of this study was to assess the influence of procurement practices on the
occurrence of failures of power transformers in substation projects, particularly after warranty
period is passed and the projects are closed. The study was made through case study of a
substation project called Electric Network and Reinforcement (ENREP) of the Ethiopian Electric
Power.
The study has utilized primary and secondary data sources. Primary data has been collected
through questionnaire and interviews while secondary data was collected through a desk study of
project documents. Accordingly, the procurement practices particularly the procurement
planning, supplier selection and contract management found to influence the failures of power
transformers, though the incidences happened several years after completion of the project.
In the planning stage, there was problem in applying sound risk planning, market assessment of
qualified sellers, carrying out appropriate cost estimate for reliable products. In the supplier
selection, the focus of the Ethiopian Electric Power was mainly on price and delivery schedule.
With regard the contract management, the practice seems good enough, however, there was gap
in applying lessons from failed cases which might have contributed to the continued failures of
power transformers.
Therefore, to remedy the unprecedented failures of power transformers and other critical
substation equipment in the Ethiopian Electric Power, using proper procurement planning
practices to avoid potential risks, vetting manufacturers and their product in advance through
prequalification process, applying complete cost of ownership during evaluation with good
contract management including applying lessons learned to avoid similar mistakes in next project
can help to improve the situation which essentially means revisiting and making improvement on
the procurement practices of the Ethiopian Electric Power.
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Keywords
substations,, Inherent, failures,, warranty period,, Power transformer, procurement