Wednesday, November 05, 2003

Insufficient Equipment Delays Bakun Dam
Tan Sri Nik Mohamed Nik Yaacob, chief executive, admitted that the Bakun dam project was behind schedule at Sime Darby's AGM yesterday.

He said that the delay is partly due to insufficient equipment but is less than the six months reported elsewhere. He stressed that the project will be completed on time by September 2007.

He further said that the delay would eat into some of the profits of the project.

Now what conclusion can be drawn if the project is going to finish on time (inferring that there will be no additional overheads incurred) but the project is going to cost more and the lack of sufficient equipment is delaying the project?

It very much sounds as though somebody has under estimated the amount of equipment needed.