Engineering Economics and Stakeholder Management CW2 Summative Assessment Brief

EESM Assessment Brief

This module is assessed through one graded element worth 100%. You must achieve at least 50% to pass the module. For this assignment you will produce a Business Consultancy Report based on the provided project, written in an academic style.

By completing this assessment, you will achieve the following module learning outcomes (MLOs):

LO1: Systematically analyse and provide commentary on financial data applied within an engineering context.
LO2: Critically appraise and reflect on the financing and investment decisions and construct viable strategies in financial planning and management that can be applied within an engineering environment.
LO3: Critically reflect on the challenges of managing commercial negotiations and discussions with a range of stakeholders including conflict management that can be applied within an engineering environment.
LO4: Critically evaluate commercial and financial information within a range of professional contexts.

1. Assessment Scenario

As a newly appointed specialist consultant, you are tasked with delivering a comprehensive critical analysis to the Board of the project under review.

Your assignment is to craft a Business Report of no more than 2,500 words that meticulously addresses the key points outlined in the Tasks below (see item 3).

This report should showcase a deep understanding of the techniques and concepts explored in the module, integrating relevant frameworks or theories and drawing on wider research to provide a thorough and insightful and critical analysis.

Your work should be closely aligned with the Module Learning Outcomes (MLOs), demonstrating your ability to apply theoretical knowledge to practical scenarios and deliver actionable insights to the Board.

2.1. Case Study Introduction (World Bank, 2019)

Karachi Mobility Project

Project Summary

The Karachi Mobility Project is a large-scale infrastructure initiative aimed at improving transportation in Karachi, Pakistan. It focuses on enhancing urban road infrastructure and developing a Bus Rapid Transit (BRT) system along the Yellow Corridor, which is a major transportation route in the city. The project also includes capacity building and technical assistance to strengthen local institutions and ensure the sustainability of the improvements.

Objectives The main goal of the Karachi Mobility Project is to improve mobility, accessibility, and safety along selected corridors in Karachi. 

This includes:

• Enhancing public transport options to reduce travel time and increase accessibility for residents, especially women and those with limited mobility.
• Improving the overall safety of the transportation system, including reducing traffic fatalities.
• Promoting sustainable urban development by integrating transit-oriented strategies and mitigating environmental impacts.

Key Components

• Urban Road Infrastructure: Yellow Corridor - rehabilitation and reconstruction of road infrastructure, including pedestrian and motorcycle facilities.
• Development and Operationalization of a BRT System: Yellow Corridor - construction of a Bus Rapid Transit (BRT) system, including stations, depots, and fare collection systems.
• Capacity Building and Technical Assistance: Support for project management, traffic management, and institutional strengthening.

2.2. Case Financial Data

1. Project Cost: The total cost of the Karachi Mobility Project is estimated in 438m USD (World Bank Group, 2019).
2. MARR: 8.0% (World Bank, 2019).
3. Annual Cash Net Flow: Consider project revenues and expenses (Operations & Maintenance – O&M) on Table 1 to calculate cash net flow for 25 years period. Consider that there are no annual variations in those values within that period. No residual value at the end of the period. Consider total project costs at Year 0.

2.3. Project Report

World Bank, (2019). Documents & Reports - All Documents | The World Bank. [Viewed 7 April 2025]. 

3. Assessment Tasks

Based on the financial data provided and your understanding of the provided project, your report must address the following questions regarding project’s financial analysis, investment decisions, stakeholder management, and overall commercial and financial evaluation.

1.Financial Data Analysis and Evaluation (LO1)

Systematically examine and critically analyse the financial information provided for the project. Use appropriate financial indicators and methods to understand important aspects of the project's financial situation.

2. Financial Decisions and Planning Strategies (LO1, LO2)

Critically evaluate the financial options made in the project and propose practical strategies for financial planning and management, including different financing alternatives. Assess the feasibility and suitability of these options, using evidence and financial principles to support your recommendations.

3.Managing Stakeholder Engagement and Challenges (LO3, LO4)

Explore and critically discuss the roles and interests of the stakeholders involved in the project. Identify key stakeholders’ management challenges, such as conflicts of interest between stakeholders. Suggest clear and practical strategies to handle these challenges, focusing on solutions that balance the project's financial needs with stakeholder expectations.

4. Assessment and Reflection on Decisions (LO2, LO4)

Use the insights obtained from the financial analysis of previous tasks to critically reflect the project's goals, risks, considering financial, environmental, social, economic factors. Provide clear, actionable recommendations for improving project outcomes.

4. Assessment Guidelines

Your submission should demonstrate a comprehensive understanding of financial analysis and strategic planning within the provided project, integrating both theoretical insights and practical applications.

You are required to access information through credible and authentic sources (e.g., the BPP library, corporate websites, annual reports, quality media sources, affiliated industry associations, industry periodicals, and journals).

Third-party report writing sites are not credible academic sources and should not be used. You are NOT required or permitted to conduct any primary research for this assessment. You are not allowed to access or use any third-party report-writing services, whether generated by AI or otherwise. Such services are likely to lead to an investigation into PAM. All submissions must be written in an academic style (i.e. not first person).

This task is designed to measure your progress towards the following module learning outcomes, and you should consider these learning outcomes carefully while writing your research essay.

Structure Your Report Logically

Consider using the recommended structure to guide your report’s flow:

• BPP Cover Sheet (mandatory)
• Front Cover
• Table of Contents

1. FINANCIAL DATA ANALYSIS AND EVALUATION (LO1)

This task involves looking at the financial data to see how healthy and successful the project is financially.

1.Gather relevant financial data and calculate key financial indicators

• Using the case study and other sources you have researched, obtain the financial data that's relevant to the project.
• Calculate:

• Debt-to-Equity Ratio
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Profitability Index (PI)
• Payback Period

2.Interpret and analyse the project's financial situation.

• Critically interpret the financial ratios and indicators. Look at any worrying areas, like high debt, low liquidity and how attractive the investment is.
• Identify and criticise whether the project is financially feasible and point out factors that could negatively impact the project's financial health.
• You can use sensitivity analysis and scenario analysis to back up your examination.

2. FINANCIAL DECISIONS AND PLANNING STRATEGIES (LO1, LO2)

This task involves carefully looking at the financing choices made in the project and suggesting practical ways to manage and plan different ways to financing it.

1.Evaluate project financing and revenue generation

• Identify and analyse how the project is financed and whether it will generate enough revenue to cover its financial obligations.

2.Explore alternative financing options and propose management strategies

• Identify and evaluate up 2 assumptions for each:
  ▪Short-term financing options.
  ▪Long-term financing options.
• Compare up to 2 pros, cons, risks, and long-term sustainability of each option, considering qualitative and quantitative aspects of each.
• Compare the financial indicators (from Task 1) with the Minimum Attractive Rate of Return (MARR) and talk about how it affects project’s financing.
• Develop 2 strategies to enhance the project's financial management:
  ▪One key financing strategy for short-term financing options.
  ▪One key financing strategy for long-term financing options.

3. MANAGING STAKEHOLDER ENGAGEMENT AND CHALLENGES (LO3)

This task focuses on the dynamics of stakeholders and the commercial challenges faced during the project.

1.Identify stakeholders, their interests and potential conflicts of interest

• Identify up to 4 key stakeholders involved in the project – 2 internal and 2 external.
• Use Mendelow’s Matrix to identify and analyse each stakeholder interests and influence in the project’s outcomes.
• Assess the power relationships between stakeholders, focusing on:
• Which stakeholders hold the most influence in decision-making and why.
• Identify potential conflicts of interest and how these conflicts might affect the project's outcomes.
• Reflect on how effective communication, emotional intelligence and persuasion techniques can be used to solve those conflicts.

2. Propose stakeholder engagement strategies

• Recommend up 3 strategies for improving stakeholders’ communication and engagement.
• Discuss how these strategies can be incorporated into the project’s financial decisions, ensuring continued viability and stakeholder support.

5. Mapping The Assessment Towards Module Topics And Module Learning Outcomes (Mlos)

6. Marking Rubrics