At the Global Infrastructure Facility (GIF) Advisory Council Meeting in March, we talked about construction risk and the way it shapes the delivery environment early in a project’s investment life. As a practicing engineer accustomed to attacking construction risk at the granular level, I enjoyed the broader discussion, particularly from the banking and credit perspective (meeting outcomes).
Unfortunately, construction risk realization will continue to be the norm. Perhaps we need to consider taking the longer view to reach potential investors by aligning the risk environment with risk tolerance.
Here are three ways to do this:
Caution – this blog is almost as long as the soon-to-be commissioned Niagara Tunnel.
Often I can hide it – posing maybe as an economist, risk manager, a finance-guy, public-policy wonk; I’ve even once been complimented as an urban planner. But every now and then I revert to form and it slips out that I’m an engineer. This week was a classic – a ‘boy and his toys,’ my wife warned.
I went to Niagara Falls not to see the falls, or visit the casino, but to tour Ontario Power Generation’s (OPG) Niagara Tunnel and Adam Beck Hydroelectric Power Station! Well worth a ‘!’ as getting to visit these two big civil engineering works was a bit like Christmas coming early; and they provide important lessons.
Civil Engineering students graduate knowing at least three things: you can’t push a rope, gravity never takes a day off, and a three-legged table won’t wobble. They are now learning a fourth: You can’t build a city without civility.
Civil engineers are largely responsible for our built environment. Generally they’re a studious and busy lot; and they are about to get a lot busier – in the next twenty years they have to help build cityscapes for about 2 billion new urban residents. But today what’s needed even more than civil engineers is more civility. A few recent examples, big and small, come to mind.