Reducing Project Risk Through Effective Stakeholder Engagement : Lessons Learnt from Selected Projects in Malaysia

Dr. Ir. G Balamurugan

ERE Consulting Group Sdn Bhd

www.ere.com.my

www.ere.com.my

www.ere.com.my

www.ere.com.my

www.ere.com.my

www.ere.com.my

www.ere.com.my

www.ere.com.my

www.ere.com.my

www.ere.com.my

Dilemma
Every project, no matter how well conceived or technically sound, will hurt or be perceived to hurt some interest or member of the public. And every member of the public has veto power, i.e. the ability to stop or seriously delay a project.

www.ere.com.my

Frustration
We are trying to implement an infrastructure project that will benefit the people .. yet these people see us as their enemies. Ungrateful #&%$#@(

www.ere.com.my

Typical Controversial Projects

Incinerators & landfills Roads Dams Ports, marina & coastal defence LRT / MRT Housing, townships, cemetery, etc
www.ere.com.my

Controversy causes :
Project delays Cost over-runs Tarnishes proponents reputation Increases scrutiny over project Loss of government credibility

Essential infrastructure projects are stalled therefore original problem remains unsolved
www.ere.com.my

Whenever there are public protests, projects are scrutinized in greater detail :
Detailed EIA Public review of project documents Independent expert opinions Banks, insurance companies

More scrutiny means more delays and greater costs

www.ere.com.my

Source of controversy
Perception that project will cause problems to the people Perception that project will cause substantial damage to the environment Misinformation Prejudice

www.ere.com.my

Why controversies will continue

The Malaysian public is well-educated, especially in urban areas. Quality of life improving rapidly Expectations on government are high Well aware of their rights Well aware of past project screw-ups Media sympathetic towards environmental & social causes Political climate
www.ere.com.my

Effective Stakeholder Engagement

www.ere.com.my

Challenging Will not completely eliminate risks

www.ere.com.my

Perceived level of credibility / trust

Non-governmental organizations Scientists/ academics Media Trade unions, etc Government - Federal - Local Private companies
www.ere.com.my

1. Engage stakeholders strategically

www.ere.com.my

Stakeholder engagement must be done at all stages

Engage
POLICY

PLAN / PROGRAMME

Engage

PROJECTS

Engage
www.ere.com.my

National Energy Policy

Fed & state govt agencies, NGOs, academics, business sector, O & G sector, TNB, IPPs, experts

POLICY

Sabah State Plan

PLAN / PROGRAMME

State govt agencies, NGOs, business sector, O & G sector, SESCO, experts, community leaders, local politicians

PROJECTS

Coal Fired Plant at Lahad Datu

State & local govt agencies, NGOs, experts, local residents, local businesses,

www.ere.com.my

www.ere.com.my

www.ere.com.my

2. Engagement must be continuous

www.ere.com.my

Feasibility Engage

Design Engage

Construction Engage

www.ere.com.my

Close the loop

INFORM

Always follow up. It is damaging to credibility if there is no follow up with participants on decisions made in response to their concerns

REVIEW

FEEDBACK

FEEDBACK

REVIEW

INFORM

3. Provide appropriate information

communicate, communicate, communicate

Stakeholders have varying information needs

www.ere.com.my

10

Provide information that allow stakeholders understand your projects

The need for the project Policy context What problem it will solve How it will benefit the stakeholders How it has been planned Project schedule (how long construction) Impacts, compensation, etc

Provide information that allow stakeholders understand your projects

4. Demonstrate planning efforts

www.ere.com.my

11

MRT Alignment Options

Segment B1: Jalan Batu Tiga to Tropicana Medical Centre

Segment B2: Jalan Duta to Warisan

www.ere.com.my

5. Demonstrate technical basis

www.ere.com.my

Demonstrate the sound technical basis. A sound logical and technical basis is necessary to achieve public confidence. Department policies are not sufficient justification. Example : the briefing for NGOs

Although there will be morons in the crowd, the majority are intelligent people

www.ere.com.my

12

6. Help stakeholders to engage better

Provide appropriate information in an appropriate manner in an appropriate venue Date and time must suit local communities Use local languages / dialect where possible Provide translators Provide ample opportunity to ask questions Workshop expenses (travel/accommodation) paid for

7. Take ownership of the engagement process

13

Project Owner present at all dialogues [it would be helpful if the representative can also speak well] Senior executives must participate in the dialogues. Show that you are serious Do not rely too much on consultants

www.ere.com.my

8. Participatory planning

14

Participatory planning Community-mapping

9. Empathy

Empathy Understand their problems and frustrations AND demonstrate that you understand. Acknowledge past mistakes. Acknowledge achievements (e.g. Bundu Tuhan and Kiau CCA)

15

10. Be aware of rumors

www.ere.com.my

Espionage. Be aware of neighbourhood gossips, forums on the internet, media reports,

www.ere.com.my

www.ere.com.my

16

11. Miscellaneous tips

www.ere.com.my

Clarify at the beginning - the objectives of the dialogues. To inform only ? To obtain feedback ? To identify affected parties ? Always give handouts. It often shows that you got nothing to hide. Document all communications. Timing is important. Engagement can even begin well before the project is even announced.

www.ere.com.my

Conclusion

Project controversy is bad in terms of money, time and reputation. Stakeholder engagement should be carried out systematically. Engaging stakeholders is a difficult process. Requires courage and humility. But it will help to see your project through.

www.ere.com.my

17

Thank you

www.ere.com.my

18