KPC Conducts Public Investment Management Guideline & SAP Project Module Capacity Building exercise
Kenya Pipeline Company staff members were taken through sensitization trainings on the Public Investment Management guidelines and capacity building sessions on the SAP project systems module. The in- house training was conducted by officers from the Project Research, Planning and Design (PRPD) department.
The sessions were aimed at creating awareness about the National Treasury circular No. 16/2019 whose objective is to guide state departments and agencies on the various project phases as well as to provide a standard approach on project cycle management and ensure all relevant stakeholders are involved during the project life cycle.
The sensitization exercise was carried out during the last quarter of Financial Year, 2020/21 and a total of 70 members of staff were trained drawn from Infrastructure development directorate, ICT, Legal, Supply Chain, Finance, Monitoring and Evaluation, Audit and Enterprise Risk departments.
The head of PRPD, Mr. Paul Njuguna told Kenpipe News that the company is in the process of changing its approach to Project Lifecycle Management to comply with the Public Investment Management Guidelines (PIM) guidelines. “Following the approval of the project framework and policy documents by the KPC Board in April this year, we are now aligned to the guidelines. KPC now has a tailor-made guide in the management of all projects which is aligned to the PIM guidelines issued by The National Treasury. Going forward, the project framework and policy documents shall be used as the reference by all departments involved in the development and execution of projects”, Mr. Njuguna said.
“These guidelines will help KPC adopt best practices that will improve planning, implementation and close out of the various projects KPC undertakes. KPC will be able to streamline its project management while ensuring that there is proper documentation of each stage of the project at the same time easing the availability of information when required,” he added.
The PRPD department is involved in project pre- investment activities and its main mandate are to:
1. Coordinate project concept notes development, review, and approval process
2. Undertake pre-feasibility study with correct project scope
3. Undertake feasibility study with correct project scope and budget
4. Standardization of project life cycle from conception to closure
5. Coordinate project design and costing
6. Prepare project progress dashboards and maintain a database of all projects
Mr. Njuguna said according to the Circular a project should follow the following stages namely:
1. Project Identification and conceptual planning
2. Project pre-feasibility and pre appraisal
3. Project feasibility and appraisal
4. Project selection for budgeting
5. Project implementation, Monitoring, Evaluation and Reporting
6. Project closure, sustainability, and Ex-post evaluation
Of the six stages, he said the first 3 commonly known as pre-investment activities, are the sole responsibility of the PRPD department, while project selection is handled by the finance department and the last 2 phases, are handled by the project implementation department.
To further ensure value addition for projects, KPC sourced for a project management tool to enable the company handle projects with ease. Project Implementation has further been made easier by the SAP project module, which supports the entire project lifecycle from planning to closure.
The key functionalities of the SAP module are project structuring, time scheduling, cost and revenue planning, budgeting, procurement of project activities, invoicing, project progress analysis, period end closing and reporting.
“All documents required for the project are uploaded on the SAP system, this helps all parties involved in the project to identify the risks, documentation, and management throughout the project life cycle,” Mr. Njuguna added.
The PIM guideline and The SAP project system modules capacity building sessions are some of the creative actions the PRPD is undertaking to ensure that KPC adopts best practices that improve the planning, implementing and closeout of all projects it undertakes.
The Projects, Research, Planning and Design department aims to diligently continue to provide insight about the benefits of both the PIM guidelines and the SAP project module. By doing this they will have played a crucial role in ensuring that KPC as an organization achieves its vision of being Africa’s Premier Oil and Gas Company.