INDIVIDUAL ASSIGNMENT

STUDENT NAME: SUNG’ARETI JOSEPH L

REG NUMBER: MPPM-01-0006-2022
PROGRAM: MSc-PROJECTS AND PLANNING MANAGEMENT
MODULE: PROJECT ASSET AND AUDIT MANAGEMENT
MODULE CODE: PMG PMG 09201
FACILATATOR: CPA Hamis Majala &CPA Patrick Sawe
SEMESTER: TWO
ACADEMIC YEAR: 2022/2023

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A. WHY IT IS NECESSARY TO MANAGE THE PROJECT ASSETS
The Tanzania Standard Gauge Railway (SGR) project is a large and complex project
with a significant investment (Nyumba et al., 2021). It is therefore important to manage
the project assets effectively in order to ensure that the project is completed on time,
within budget, and to the required quality standards. The Standard Gauge Railway
(SGR) project in Tanzania involves significant investments of financial and physical
resources (Wissenbach & Wang, 2017). Therefore, it is essential to manage project assets
efficiently to ensure that they are used effectively to achieve project objectives. Proper
asset management is necessary to optimize the use of resources, minimize waste, and
ensure the project's sustainability. It involves identifying, acquiring, and maintaining
project assets such as land, buildings, equipment, and materials throughout the project
lifecycle. Effective asset management can help to reduce costs, enhance project quality,
and improve overall project performance.
the key project assets that need to be managed include:
• Financial assets: This includes the project budget, as well as any other
financial resources that are used to fund the project.
• Physical assets: This includes the physical assets that are created or used as
part of the project, such as the railway tracks, stations, and rolling stock.
• Intellectual assets: This includes the intellectual property that is created or
used as part of the project, such as the project plans, designs, and
specifications.
• Human assets: This includes the people who are involved in the project,
such as the project team, the contractors, and the suppliers.
By effectively managing these project assets, the project team can increase the chances
of the project being successful. The following are the reasons why it is necessary to
manage project assets in the Tanzania Standard Gauge Railway project:
• To ensure that the project is completed on time and within budget: By
effectively managing the project assets, the project team can identify and
mitigate any risks that could delay or derail the project.

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 • To ensure that the project meets its quality standards: By effectively
managing the project assets, the project team can ensure that the project is
built to the required standards, which will ultimately save time and money
in the long run.
• To protect the project from fraud and corruption: By effectively managing
the project assets, the project team can help to prevent fraud and corruption,
which can have a significant impact on the project's success.
• To improve the project's overall performance: By effectively managing the
project assets, the project team can improve the project's overall
performance, which will ultimately benefit the project's stakeholders.
B. WHY IT IS NECESSARY TO UNDERTAKE PROJECT AUDIT
A project audit is a systematic and independent review of a project's performance,
processes, and outputs. It involves an evaluation of how well a project is meeting its
objectives, adhering to its plan, and staying within budget and timelines. The goal of a
project audit is to identify areas where the project is succeeding and areas where it needs
improvement. Project audits can be conducted at different stages of the project life
cycle, including during project planning, during project execution, and after project
completion(A Guide to Project Auditing Association for Project Management, n.d.). They can
be conducted by internal auditors, external auditors, or by project team members who
are not directly involved in the project. During a project audit, the auditor will typically
review project documentation, interview project team members and stakeholders, and
observe project activities. The auditor will assess the project against established criteria,
such as project goals, objectives, and performance measures. They will also examine
the project's management processes, such as risk management, quality management,
and change management. The output of a project audit is a report that highlights the
strengths and weaknesses of the project and provides recommendations for
improvement(Ardhi & Erm, 2019). The report may include findings on the project's
performance, risks, compliance with regulations and standards, quality issues,
stakeholder engagement, and project management practices.
The following are the reasons why it is necessary to undertake project audit in the
Standard Gage Railway project in Tanzania:
• To ensure that the project is meeting its objectives: The Standard Gage Railway
project is a $14 billion project that is expected to be completed in 2025.

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 • However, there have been a number of delays and cost overruns. As of January
2023, the project is only 60% complete and is expected to cost $18 billion. An
audit could help to identify the reasons for the delays and cost overruns and
make recommendations on how to improve the project's performance.
• To identify any risks to the project: The Standard Gage Railway project is a
high-risk project due to its size, complexity, and location. The project is being
built in a politically unstable region and there is a risk of terrorism or civil
unrest. An audit could help to identify the risks to the project and make
recommendations on how to mitigate those risks.
• To improve the project management process: The Standard Gage Railway
project is being managed by a consortium of international companies. There
have been a number of communication and coordination problems between the
different companies. An audit could help to identify the problems with the
project management process and make recommendations on how to improve it.
• To provide assurance to stakeholders: The Standard Gage Railway project is a
major investment for the government of Tanzania. An audit could help to
provide assurance to stakeholders that the project is being managed effectively
and efficiently.
• To improve public confidence: The Standard Gage Railway project has been
met with some public opposition. An audit could help to improve public
confidence in the project by providing transparency and accountability.

C. TYPICAL PROJECT STAKEHOLDERS AND THEIR POTENTIAL INTERESTS

A project auditor is an independent professional who is responsible for conducting an
objective and systematic evaluation of a project's performance, processes, controls, and
deliverables. Their primary role is to assess whether the project is being executed
according to the project plan, budget, timeline, and other requirements, and to identify
potential risks, issues, or deviations from the project objectives. Project auditors may
be internal or external to the organization, and they use various techniques, such as
reviewing project documentation, conducting interviews with project team members
and stakeholders, and observing project activities, to gather evidence for their
assessment (PROJECT MANAGEMENT AUDIT, 2020).

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The main goal of project auditing is to provide an unbiased and constructive feedback
to the project management team and stakeholders, and to help improve the project's
performance and outcomes. As a project auditor, typical stakeholders of the Tanzania
Standard Gauge Railway (SGR) project include:
1. Government of Tanzania: The government is the primary stakeholder of the
SGR project. They are responsible for financing the project and ensuring
that it meets the objectives of improving transportation infrastructure and
boosting economic growth. The government's interest is in completing the
project within budget, on time, and to a high-quality standard.
2. Contractors: The contractors responsible for building the SGR, such as Yapı
Merkezi from Turkey, Mota Engil Africa from Portugal, China Civil
Engineering Construction Corporation, and China Railway Construction
Company, are stakeholders in the project. They have a vested interest in
ensuring that the project is completed according to the specifications
outlined in the contract. Their interest is in completing the project on time,
within budget, and to a high-quality standard.
3. Tanzania Railways Corporation (TRC): TRC is responsible for operating
and maintaining the SGR once it is completed. They are stakeholders in the
project because they will be responsible for ensuring that the SGR operates
efficiently and safely. Their interest is in ensuring that the SGR is built to the
highest standards of safety and that the project is completed within the budget.
4. Local communities: The communities living along the SGR route are
stakeholders in the project as well. The SGR will have an impact on their
daily lives, including noise, air pollution, and potential land acquisition.
Their interest is in ensuring that their rights are protected during the project,
and that they are compensated fairly for any negative impacts.
5. Freight and passenger transport businesses: The SGR is expected to improve
the transportation of goods and people between Tanzania and neighbouring
countries. Freight and passenger transport businesses are stakeholders in the
project as they stand to benefit from the improved transportation
infrastructure. Their interest is in ensuring that the SGR is completed as
planned and that it meets their transportation needs.
6. Investors: Investors who have put money into the SGR project are
stakeholders as well.

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 They have a financial interest in the success of the project and expect to
earn a return on their investment. Their interest is in ensuring that the project
is completed within budget and on time, and that it meets the expected
financial returns.

A table summarizing the stakeholders, their potential interests, and their roles in the Tanzania
Standard Gauge Railway project.

Level of
Interest
Stakeholder Group Interests

- Improving transportation infrastructure

- Economic development and job creation

Government of Tanzania - Ensuring the project is completed within budget and on time High

-Meeting project specifications

- Completing work on schedule

Contractors and
Subcontractors - Ensuring quality control and safety standards High

- Ensuring the SGR operates efficiently and safely

Tanzania Railways
Corporation - Completing the project within budget High

- Protecting their rights

- Fair compensation for negative impacts

Local Communities - Mitigating noise and air pollution Medium

- Improved transportation infrastructure

- Meeting transportation needs

Freight and Passenger
Transport Businesses - Completion of the project as planned Medium

- Earning a return on investment

-Completion of the project within budget and on time

Investors - Meeting expected financial returns High

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REFERENCES
A Guide to Project Auditing Association for Project Management. (n.d.) 2022.
Ardhi, E., & Erm, A. (2019). TRC, SGR PROJECT, TANZANIA STANDARD GAUGE
RAILWAY LINE (SGR) PROJECT Dar es Salaam-Makutopora, Tanzania Environmental and
Social Management and Monitoring Plan.
Nyumba, T. O., Sang, C. C., Olago, D. O., Marchant, R., Waruingi, L., Githiora, Y., Kago, F.,
Mwangi, M., Owira, G., Barasa, R., & Omangi, S. (2021). Assessing the ecological impacts
of transportation infrastructure development: A reconnaissance study of the Standard Gauge
Railway in Kenya. PLoS ONE, 16(1 January). https://doi.org/10.1371/journal.pone.0246248
PROJECT MANAGEMENT AUDIT. (2005). www.procept.com
Wissenbach, U., & Wang, Y. (2017). African politics meets Chinese engineers: The Chinese-
built Standard Gauge Railway Project in Kenya and East Africa. In China Africa Research
Initiative (Issue 13).