Time Overrun and Its Impact on Cost of Construction of Small Hydropower Projects in Nepal

Hydropower is one of the main sources of energy that can be produced as green energy highlights the timely complementation of construction projects. The study is focused to assess the causes of time overrun and its impact on the cost of construction of small hydropower projects in Nepal. The study is based on pragmatic philosophy using case study and survey along with document analysis using correlation and financial decision tools. The result of the study found that all sample projects were facing time overrun. Only 30 % of the cost was due to time increment. Along with time overrun direct cost was negatively related and the indirect cost was positively related, the direct cost was more significant than the indirect cost of the hydropower project resulting in the total cost being negatively related to time increment. Profitability was decreased due to time factors though it was positive till other factors were not impacting. The research concluded that social issues and land problems were the main cause of time overrun which was not properly addressed at the time of planning. Time overrun had become the norm rather than the exception on projects. Time was a partial factor of cost overrun causing it to reduce in its profitability. Besides time, another factor which was causing the cost overrun is to be identified and control for cost overrun. The developer should focus on reducing the direct cost using advance purchase agreement as of schedule and specific care should be taken for social demand. Methods of time allocation of contract should be estimated based on activities using theory of constraints for assuring timely completion and profitability of hydropower projects