Risk management in megaprojects: Canal Istanbul as a case study

Abstract

Canal Istanbul, is the artificial sea-level waterway that will be an alternative route for sea transport along the Bosphorus strait. Though experts have some conservations about this mega project due to the international pacts such as Montreux Convention, it proposed to be a new source of income for Turkey. The success of Canal Istanbul heavily rely on comprehensive project management and project procurement system throughout the life cycle of the project. Every project has a certain level of risk and Canal Istanbul megaproject should be managed carefully in order to overcome possible risks against the accomplishment of its objectives. According to the project cost estimation, one of the possible risks is an economic risk, which is the increasing cost while compared to the officially announced cost by Turkish government.