LMP 711S

Read the case study below and answer the questions that follow;

WORKS AND TRANSPORT Minister John Mutorwa says the government stopped 320 out of 570

infrastructure projects this financial year because of budget cuts.

Mutorwa made this announcement in the National Assembly last week when he answered questions by SWANU lawmaker Usutuaije Maamberua.

The minister said the government planned to implement and oversee 570 projects for 22 ministries and

state agencies during the 2017/18 financial year.

"However, due to budget cuts, not all projects were implemented. A total of 320 projects had to be

stopped, with 96 at the feasibility study stage; 50 at the freezing document stage; and one at documentation

stage," he explained.

Mutorwa said the government agreed to implement the remaining 250 projects.

Some ministries and state agencies have not yet decided on which projects to prioritise since they are still hoping that the government's financial situation will improve.

The minister said the costs that the government will pay for stopping the projects is not fully known. The financial implications will only be assessed once all ministries had taken a definite decision on which projects will be called off.

Maamberua also asked what government would pay for stopping the construction of the N$1 billion

new head offices of the home affairs ministry in Windhoek.

The minister said the anticipated extra costs that will accrue to the government as a result of a work stoppage due to budget cuts for the project is around N$32 million.

Mutorwa said costs could increase if the project is delayed further.

The exact impact of the stoppage of the projects on the number of people who lost their jobs still has to be assessed too. The National Union of Namibian Workers, however, stated that around 10 000 people lost their jobs due to non-payments for projects by the government in 2016.

The suspension of capital projects has affected several sectors, such as the construction industry, which heavily relied on government contracts.

The Namibian reported last year that the construction industry was on its knees and begging

government to pay its N$1.8 billion outstanding debt for work already done, saying that one-third of

sector workers had already been retrenched because of depressed conditions. At the time, the Construction Industries Federation (CIF) of Namibia said 63% of businesses had either

closed down, were dormant, or had scaled down operations drastically.

By Shinovene Immanuel. The Namibian newspaper

https://www.namibian.com.na/175107/archive-read/320-state-projects-shelved

Answer the following questions (be as critical as possible)

Definition of project management, in your document outline the importance of project scope, discuss critical issues related to project compliance as well as the process involved in conducting a project feasibility analysis. In addition, describe challenges with regards to monitoring project performanceand finally, outline the importance of cost estimations and budgeting and create a budgetbased on any project of your choice.