Megaprojects managements in Ecuador : challenges and opportunities

Megaprojects are described as large, complex and expensive construction projects. Recent studies have shown that megaprojects often result in cost overruns, time extensions and undesired outcomes. Regardless, megaprojects are common, particularly in developing countries, as they are a trigger for social and economic development (Li et al., 2010). Since 2007, the Government of Ecuador has begun an unprecedent investment in infrastructure. Through the National Water Secretary, the government has 16 projects in agenda accounting for over $ 3 billion, with 6 projects currently under construction. These projects are considered flagship infrastructure in the endeavour to enhance the country´s productivity.The Bulubulu-Naranjal-Cañar project, a $406 million multi-purpose hydraulic project for irrigation and flood control, consists of over 1,000 activities and was proposed to be completed by 2015. This novel project for Ecuador, presented as a case study, represents a challenge for project management and financing. The purpose of this preliminary study is to provide an insight to megaproject management in Ecuador, and propose improvements to megaproject management through optimization of stochastic project schedules.