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Guri Dam

In: Business and Management

Submitted By hueys05
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The Guri Dam
Case Study Analysis

The Guri Dam, located on the Caroni River in Venezuela, was an idea born from the country’s necessity for economic development and reduce its dependency on its own oil rich reserves. The project was meant to aim Venezuela’s electric power generation from hydrocarbon to hydroelectric and reduce the country’s reliance on carbon based electricity, thus allowing the sale and exportation of more petroleum products. With the realization that Venezuela’s oil reserves were going to be a fundamental basis in the nation’s economic growth and stability, the Venezuelan government hired a consulting firm to develop the plan. From the start, the project had a well-defined scope, which potentially led to the project’s major success. Financed by the Venezuelan government and the World Bank, the 23 year project was completed on time and well within budget. Country leaders did an exceptional job during the planning and inception phase. Coporacion Venezolana de Guayana (CVG) was established in 1960 to study and develop the hydroelectric potential of the Caroni river. CVG outsourced the economic and technical studies of the river and the feasibility of building the Hydroelectric Central Guri (Guri Dam) to a North American Company. Eldeca, a company created in 1963 was given charge of the project and all subsequent operations of the dam. Eldeca’s management style and forethought proved to be a huge success during the course of the project. Eldeca outsourced the study of the dam construction to overseas companies due to the realization of the complexity of the project and the lack of knowledge in technological advancement and construction. Detailed information regarding subprojects and the comparison of bids for the work, allowed for accurate cost estimation as well as the realization that transitional companies were needed to start the project...

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