PROJECT LESSON LEARNS

S Y N D I C A T E 9

Ridwan Kurnia (29119188)

P A S E O C A R I B E Indri Dameria (29119030)
Heber MF Panjaitan (29119109)
Citra Wilda (29119065)
Christina Tiurma (29119228)
 • Antonio Moreno wanted to develop a sustainable design along with construction and
want to get adoption by communities of a consultative impact of a real estate
development on the people and on environment.
First Bank of Puerto Rico also supported Moreno’s views and financed the project
for $200 million.
• It was a state-chartered commercial bank with operations in Puerto Rico, the Virgin
Islands and Florida.
Govt. intervened and halted the process of construction for 60 days to revisit the
permits that were granted earlier.
• The planning board approved the project before govt. agencies finished their proper

OVERVIEW evaluations.
Supreme Court took the decision to uplift the stoppage of Paseo Caribe construction.
After deepening into the investigation, irregularities emerged Tito Kayak from
AMIGO DE MARs climbs the cranes and stop operations.
• People’s court evaluated the evidence presented by diverse stakeholders wishing to
stop the development.
 Private Public Service/Government Society

• Arturo Madero • Regulation & Permit • Tito Kayak

• Investors Administration • AMIGOS DE MAR
• Construction workers • Governor of PR • PUERTO RICO Architects and
• Bank (PR) • Institute of PR Culture Landscape Associates
• Professionals at Caribe Paseo • Supreme Court • The People’s Court
• Planning Board Other NGOs involved
• Commission of Federal Affairs
of PR senate
• Secretary of Justice
• Supreme Court

S TA K E H O L D E R
 Arturo Madero
• Highly successful real estate developer in Puerto Rico. President of San Gerónimo
Development Corporation (SGD) and LEMA Developers, and developer of Paseo
Caribe. His main priority is to make project profitable & on time, under budget 
profit for company
Puerto Rican government (APRE/ICP/Planning Board)
• had to face many conflicting moral challenges. The Paseo Caribe project had the
potential to bring money to the local economy, develop tourism, and create a large
amount of jobs during and after the completion of the project
Tito Kayak
• Member of Friends of MAR, locally and internationally known for his pacifist pro-
STAKEHOLDERS environmental manifestations and activities. Primary goal is to preserve historic sites,
assure safety, and protect community rights
ROLE
AMIGOS DE MAR
• Non-profit organization and a NGO whose mission is to be present and gain media
attention in conflicts that the organization considers relevant to its mission — mainly
environmental issues. Primary goal is to preserve historic sites, assure safety, and
protect community rights
Residents of San Luis Condominium
• Paseo Caribe would vastly increase the residential and visitor density, block their
building’s beach view, ventilation and sunlight and disturb the residential nature of
the area. The parking area would increase the traffic flow and cause sound and air
pollution
T H E P R O J E C T I M PA C T S
ECONOMIC – Positive
◦ The Paseo Caribe project had the potential to bring money to the local economy, develop tourism, and create a
large amount of jobs during and after the completion of the project.
PERSONAL – Negative
◦ Paseo Caribe would vastly increase the residential and visitor density, block their building’s beach
view, ventilation and sunlight and disturb the residential nature of the area. The parking area would
increase the traffic flow and cause sound and air pollution.
ENVIRONMENTAL – Negative
◦ A portion of the project’s land site had been sold illegally to Madero in the first place because it was
located in a maritime-land zone (ZMT), which were sensitive coastal zones under the protection of
the Department of Natural and Environmental Resources (DRNA). Since the Paseo Caribe project
would be built near a historic monument, adverse effects on historical monuments were concerning.
◦ Land Maritime zone was not considered properly. 🡪 despite, it being sold to Madero

◦ Studies and permit still pending, eventhough land consultation has been authorized

◦ Water permit issue

Ethical

◦ There was a threat to San Jeronimo Fort

◦ People close to residential building

◦ Construction along the coastlines was a dangerous

◦ The historical Fort could not be restored

 LESSON Co
st

LEARNED & Every Organization or projects make

mistakes
PROJECT
Where there is a failure, there is the
CONSTRAINTS potential for learning
Tim
e Sc
op
e

Typical causes of project failure occur when the following criteria for
success are not met:
1. on time delivery,
2. on or under budget,
3. acceptance by client and/or stakeholders based on stated scope of work.
S-CURVE & LESSON LEARNS

There is a small S-Curve on every step of project that

carry lesson learns
Especially for recurring project, project lesson learns is
S-2 a continuous improvement process

S-1
HOW TO ENSURE A PROJECT’S
FA I L U R E
1. Ignore The Project environment (including stakeholder)

2. Push a new technology to market too quickly

3. Don’t bother building in fallback options

4. When problem occur, shot one most visible

5. Let new ideas starve to death from inertia

6. Don’t bother conducting feasibility study

7. Never admit a project is a failure

8. Overmanage project managers and their teams

9. Never, never conduct post-failure reviews

10. Never bother to understand project trade offs

11. Allow political expediency

12. Make sure the project run by a weak leader

 If the project experienced a catastrophic failure
due to scope creep, budget overruns, a product
WHY that fell below expectations, or any other
problem, the only way to prevent the same
LESSONS outcome in the future is to: 

LEARNED
IS
I M P O RTA N T Understand what went wrong and why

Identify what can be done differently in the future

 ● Private sector especially project owners should do Project Stakeholder Management
Overview to analyze stakeholder expectations, assess the degree to which they
impact or are impacted by the project, and develop strategies to effectively engage
stakeholders in support of project decisions and the planning and execution of the
work of the project. Project Stakeholder Management Overview consisting of :
○ Identify Stakeholders
○ Plan Stakeholder Engagement

MAJOR ○
○
Manage Stakeholder Engagement
Monitor Stakeholder Engagement

LESSONS ● Public sector/government should set clear and comprehensive regulations and
LEARNED consider all related factors, the permit granting process is done transparently. The
credibility of the permit-granting and the role of the government are also great
concern.

● Civil society is informed about the project, involved in public hearings and or
dialogue and protected by clear regulations.
 ● Investors, Citizens, Developers and Governments should avoid such conflicts in future by
doing the following:
• Government should consider all factors (such as public reaction, impact on state image
etc.) before re-zoning
• The permit granting process should be more clear and final. No one was clear about the
validity of the permits causing the huge debate
• Developers should consider all laws and regulations before deciding for such big
construction plan re-zoning
MAJOR • Developers should have told the common public about all advantages of the project
such as rise in employment within the region and the tourists coming etc.
LESSONS • Citizens should be informed and taken into confidence before starting any such projects.

LEARNED Their concerns should be addressed construction plan

• The investors should have analyzed the feasibility before putting in money for the project
• Involved parties had different opinions, interests and values.
• There was a lack of collaboration, transparency and communication
• This delayed the project from the start
• Individual groups were fighting for theirs personal interests to avoid conflicts,
Government should take to avoid these from happening
 ● The Paseo Caribe project controversy could be characterized as all three i.e. an ethical issue, a
political failure, and a lack of corporate responsibility.

a) An Ethical Issue

• There was a threat to the San Jeronimo Fort, a historical place and public access to it and
surrounding areas would be restricted

• Project was close to residential buildings and was affecting residents’ quality of life by blocking
beach view, increasing air/noise pollution and increase visitor density

MAJOR • Construction along the coastline was dangerous due to natural phenomenon yet the workers’
safety wasn’t taken into account
LESSONS b) Political Failure

LEARNED • Key objective 2 of Puerto Rica’s economic development plans i.e. clearly delineate the land
maritime zone wasn’t considered while granting access to build on maritime zone

• Despite ZMT zones being public property, it had been sold to Madero

• A number of studies and permits were still pending even though the Land Use Consultation
had been authorized

• Water & Sewage Authority’s request to delay permit till major water supply was built was not
accepted
 c) Lack of Corporate Responsibility

• Madero was taken to court 4 times and yet always won and didn’t take responsibility for his

MAJOR
actions

• There were doubts about the accuracy of original appraisal of the land
LESSONS • A maritime land zone (ZMT) had been purchased by Madero without regard for the sensitive

LEARNED zone

• The Planning Board s approval of the Paseo Caribe Land Use Consultation had the net effect of
redefining the parameters for land use, rezoning all the surrounding land and thus overriding
Regulation 23.
 A P P LY I N G
THE UN 10
GLOBAL
PRINCIPLES
TO THE
PROJECT
 TEN PRINCIPLES UN GLOBAL
HUMAN RIGHTS
PRINCIPLE CASE
Principle 1 : The business to be managed as a project must be in line and not violate
Businesses should support and respect the international human rights, such as the right to life, equality before the
protection of internationally proclaimed human law, freedom of expression, the rights to work, social security and
education. In the case of Paseo Caribe, Puerto Rico is experiencing an
rights economic crisis that has resulted in a multiplier effect for the right to live
safely and prosperously, to get education and a decent living. Therefore,
the stakeholders involved in this project must understand this problem
holistically and comprehensively so that premature decisions do not
appear that can violate these basic rights.
Principle 2: In this case, there is a tendency towards human right abuse. In the
Make sure that they are not complicit in human implementation of the project, the community was concerned that the
rights abuses. project would restrict public access to the Fort and oppose zoning
changes from housing to tourist zones that would vastly increase the
density of housing and visitors, disrupting the residential nature of the
area. An increase in parking areas will lead to increased traffic flow, noise
and air pollution.
 TEN PRINCIPLES UN GLOBAL
ENVIRONMENT

PRINCIPLE CASE
Principle 7 : In this case, it is not explained about the project owner or
Businesses should support a precautionary approach to developer's efforts regarding environmental issues. The
environmental challenges lack of information is one of the reasons residents, NGO,
Civil Society fret about the project's impact on the
Principle 8 : environment.
Undertake initiatives to promote greater environmental
responsibility
Principle 9 :
Encourage the development and diffusion of
environmentally friendly technologies
 TEN PRINCIPLES UN GLOBAL
ANTI-CORRUPTION

PRINCIPLE CASE
Principle 10 : In this case, there was an alleged misappropriation of
Businesses should work against corruption in all its forms, authority in which the board exceeded its decision-
including extortion and bribery making limits by approved the project when some studies
and permits still pending, beside that there was a serious
conflict of interest in the Supreme Court for example they
alleged that the Court administration had accepted a
donation from Madero for improvements the court's
physical infrastructure.