Project Stakeholders

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1 Project Stakeholders 6th African Rift Geothermal Conference ARGeo-C6 Short Course 1 Project Management for Geothermal Development Carine Chateney and Yngvi Gudmundsson

2 Stakeholders What is a stakeholder?

3 Stakeholders What is a stakeholder? Any individual, group, or organization that can affect, be affected by or perceive itself to be affected by an initiative (programme, project, activity, risk) Prince2

4 Stakeholders Why do we need to know them?

5 Stakeholders Why do we need to know them? Who are they and what is their interest?

6 Stakeholders Why do we need to know them? Who are they and what is their interest? When should we identify them?

7 Stakeholders Why do we need to know them? Who are they and what is their interest? When should we identify them? How do we identify them and their interest?

8 Identifying Stakeholders in Geothermal projects?

9 Identifying

10 Identifying Project members are stakeholders Project manager Customer/user Performing organization (directly involved in the project execution) Project team members Project management team Sponsor Typically these are the primary stakeholders

11 Identifying Secondary stakeholder generally outside of the project Influencers Can influence the project success Affected by the project Positive and negative affect Indirectly Perceive as being affected

12 Identifying Stakeholders Primary: Usually obvious Most are involved in the project Secondary: Can be difficult to identify all Often only emerge when project has started Good to brainstorm, mind map to find all Categorizing with importance

13 Mapping up stakeholders Mapping of primary stakeholders Many of the primary stakeholders are part of the Organizational chart

14 Secondary stakeholder groups Potential stakeholder include but are not limited to: Competitors Employees Government Government regulatory agencies Industry trade groups Investors Labour unions National communities Professional associations Prospective customers Prospective employees Public at large (Global community) Shareholders Suppliers Local communities

15 Stakeholders How, when and what information should be communicated to them? Are they a threat? Can they improve the project? Is they project a threat to them?

16 Geothermal project stakeholders Most power project are large scale Many project within a the project Project portfolio Many project managers and management teams Who is developing the project?

17 Primary stakeholders Developer (Project manager) Energy purchaser Agreement holder (Customer) Lenders and investors (Sponsors) EPC Contractors, sub-contractors advisors and others working in the project (Project team)

18 Example Exploration Developer Energy purchaser (PPA not necessarily in place Lender (usually investors or grant provider) Specialized geothermal resource advisor Drilling contractor Engineering and environmental advisors (Local community)

19 Example Steam field (production drilling and steam gathering) Developer (Same or new, also main investor) Energy purchaser (PPA in place) Lender (Bank) Specialized geothermal resource and chemistry advisors Drilling contractor Infrastructure and steam gathering contractor Engineering and environmental advisors

20 Example Power plant (production unit and grid connection) Developer (Same or new, also main investor) Energy purchaser (PPA fully established) Lender (Banks) Main contractor Technical advisors, sub-contractors and main equipment suppliers

21 Secondary stakeholder groups Potential stakeholder include, but are not limited to: Competitors Employees Government Government regulatory agencies Industry trade groups Investors Labour unions National communities Professional associations Prospective customers Prospective employees Public at large (Global community) Shareholders Suppliers Local communities

22 Secondary stakeholder Secondary stakeholder are typically outside of the project. Will receive the information they are provided from the project team or through indirect information Information through, media, government etc. Can be an advantage to a head of the indirect information sources

23 Who and what interest? Competitors Other developers, investors Marked development, opportunities Employees Part of the project (in large scale) Part of the organization doing the project Government Politicians Government regulatory agencies Usually related to permitting

24 Who and what interest? Industry trade groups Might benefit and help the project Can affect their market Investors Investors who are not directly involved Labour unions Can benefit them, more jobs Can delay work if members are not satisfied Local communities Working with them and informing is important Usually split views, negative and positive

25 Who are they in Geothermal National communities The nation, geothermal can be important for the future Professional associations Many professionals related to the project Prospective customers Grid company a Primary stakeholder, others are mostly general public Public at large The media!

26 Secondary stakeholder groups Potential stakeholder include but are not limited to: Competitors Employees Government Government regulatory agencies Industry trade groups Investors Labour unions National communities Professional associations Prospective customers Prospective employees Public at large (Global community) Shareholders Suppliers Local communities

27 Ranking the stakeholders by project risk - Example Stakeholder Possibility of involvement (A = 1-5) Impact on project (B = 1-5) Score AxB The national government Local government Employees Environmental protection agency Ministry of Energy Labour union

28 Communication plan Higher score = communication more important When to send information During milestones achievement Some may require regular progress info When drastic project changes occur Etc. How are the informed Directly: , post, meeting Through media

29 Communication plan What is the stakeholders interest Example Environmental protection agency- interests: To make sure that changes to the environment are minimized. Inform them on what measures have been taken Outcome of ESIA, etc. Better to get the comment sooner than later Keep involved from start

30 Linking the Stakeholder to the project Do they have any link to the project Examples Government agencies my be able to affect licences Grid company may need approval from government and agencies Government and agencies might need approvals with unions Government needs public acceptance Investors/Developers may need acceptance from other shareholder Etc.

31 Summary Primary stakeholder are the most important, but also the most obvious as they are directly involved Finding and handling the secondary stakeholder can be more complicated Keeping stakeholders informed is important, lower risk and can provide opportunities

32 6th African Rift Geothermal Conference ARGeo-C6 Short Course 1 Project Management for Geothermal Development Organized by: Financed by: Coordinator: Lecturers: United Nations University Geothermal Training Programme (UNU-GTP) Icelandic Ministry for Foreign Affairs ICEIDA and Nordic Development Fund Ingimar G. Haraldsson, UNU-GTP Anthony Ng ang a Ngigi, Geothermal Development Company, Kenya Carine Chatenay, Verkís Consulting Engineers, Iceland Peketsa Mwaro Mangi, Kenya Electricity Generating Company, Kenya Yngvi Gudmundsson, Verkís Consulting Engineers, Iceland