Financial Daily from THE HINDU group of publications
Tuesday, Jan 28, 2003
Financial Daily from THE HINDU group of publications Tuesday, Jan 28, 2003 |
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Industry & Economy
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Infrastructure Padgham offers expertise for infrastructure projects Our Bureau
CHENNAI, Jan. 27 INFRASTRUCTURE projects in India need a tighter rein on costs and budget control, and Padgham & Partners Pty Ltd, Australia, is here to offer the required expertise, according to Mr Peter Cox, Director of the company. Announcing the establishment of a regional office here, Mr Cox said that cost management in financial aspects of a building or construction project ensure timely completion and quality. Padgham's expertise was in building and engineering economics. In Australia, its portfolio is around $1 billion with its services sought by large corporations and Government departments for developmental projects. In India, the company sees major opportunities since 20 to 30 per cent cost overruns are not uncommon in infrastructure projects. If left uncontrolled such `budget blow-outs' will stall projects or cause projects to be shelved and affect future investments. The causes are a lack of formalised benchmarking and costing practices during planning and design, lack of standardised forms of contract and cost control systems, and overemphasis on lowest price. Padghams can address these issues in India where development projects were on the increase. The company's focus would be on infrastructure projects in road, rail and ports. Opportunities in upgradation and refurbishment of existing infrastructure would also be examined, as also in feasibility studies to initiate projects, Mr Cox said. Such expertise would cost the investor about one per cent of the value of construction, and the expertise would be available from initiation to conclusion. The potential benefit is in avoiding the risk of large cost overruns apart from a demonstrable saving on cost. Over the last one year Padghams has recruited a local and trained them in Australia. It has explored projects in Chennai and Bangalore, and some are on the anvil. Later, it would extend its scope of operations to other cities in the South. It was looking at projects by leading players in the healthcare industry, including Devaki group and Apollo Hospitals, he said.
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