Young Achievers

Dr. Sandip Shah General Manager, Bhote Koshi Power Company Pvt. Ltd. (Annual turnover US Dollar 18 million)

What is the secret for success? "Specialization", says Dr. Sandip Shah, 39, the CEO of Bhote Koshi Power Company Pvt. Ltd. (BKPC) since March 2000. As the first engineer of Nepal specialised in Rock Engineering (a branch of Geotechnical Engineering), he claims to have replaced the foreign consultants to a large extent in his field, and attributes his rise to the present position to his specialization.

Also the management of BKPC is based on the principle of specialization. "Everything is outsourced except the areas which are our core competencies", he informs. The operation and maintenance of the 45 MW plant, as Dr. Shah puts it, is entrusted to Harza Engineering Company of USA while the security of the plant is assigned to Group 4. Also the maintenance of the transmission line is outsourced. "We concentrate on overall project management, finance, dealing with His Majesty's Government (HMGN), Nepal Electricity Authority (NEA) and financiers."

Due to such specialization, Dr. Shah has only five people in his company as about 60 other staff positions that are involved in the business (and which otherwise would have been under BKPC) are outsourced. Then what risks are there for Shah as a manager? In answer, he names the natural risks, such as during exceptionally low flows in the river or when there are floods, Glacial Lake Outburst Floods (GLOF), earthquakes, etc. In addition, equipment failure resulting in inability to meet generation and financial targets is a major risk. Then there is the risk of security. "You cannot entrust the management of these risks to anyone else. Neither will anyone else be willing to take these risks."

For him success is a relative concept. "When I evaluate my work and find that I have done reasonably good (or better) when compared with what I had anticipated, I regard that as an example of success. Though this is from my personal perspective, the criterion does not change much even from the employers' or the superiors' perspective. If I have been able to deliver the goods that they had expected while employing me, I think I'm successful."

Does he regard himself as successful? "Of course. It's been stressful, but quite challenging."

While many engineers may be found successfully managing companies, such engineer-managers are normally equipped also with an MBA degree. But Dr. Shah is an exception in that he has no MBA. Does not he feel uncomfortable as a CEO without MBA degree? "Not at all. Not all good managers are MBAs. Management has a lot to do with communication and numbers and I was good in both as an engineer. The challenges are almost the same whether I'm an engineer or a manager. Only the nature of the challenges has changed. In fact, the challenges I used to face as an engineer were quite urgent. The tunnel would be about to collapse any time. So I would have to take quick decision for stabilization or evacuation. Now as a manager I have to make decisions depending on the severity of the situation."

Though Shahs belong to a landlord family from Kapilbastu district, Dr. Sandip's father was in government service and served as Secretary in the Water Resources Ministry. Therefore, young Shah developed fascination about hydroelectricity projects. So he wanted to be water resource engineer. This led him to sit for entrance test for Indian Institute of Technology Roorkee, India, which was preparing engineers under the request of the government of Nepal for the development of Karnali Chisapani hydroelectric project. As Chisapani project was nowhere near materialising when he completed BE from Roorkee, Shah went to Canada for further studies on a University of Toronto Open Fellowship. Why Canada? Because Canada has a good history of hydropower development. There he studied under such famed professors as Prof. Evert Hoek and one of the initial design works he did under the famous rock mechanist Prof. Hoek was 'designing the underground powerhouse' for Karnali Chisapani project. "It was an excellent opportunity for both counts: to work under Prof. Hoek and to work for the dream project of Nepal." It is however sad that his "dream project" is still a dream.

After completing his PhD in geotechnical engineering, Dr. Shah came back home in 1992 despite being qualified for naturalization in Canada and several job offers standing in front of him. The main motivator that brought him back home was the family ties, as he recollects. But he also points out as equally compelling factor the wish he had been cherishing from early days, i.e. to work for the development of hydroelectric sector in Nepal. So, upon coming back he joined the family consultancy firm - Shah Consult - but was dismayed initially that the donor-funded projects were hesitant to take a Nepali as the consultant. Meanwhile, he worked for stabilization in ten of the several landslide prone spots along Thankot-Naubise portion of Tribhuvan Highway. But he regards as a big break the work he got in Kali Gandaki 'A' Project which was being designed under Asian Development Bank funding. Though the ADB consultants reluctantly took Shah under short-term probation, the contract was extended and he was associated with the project in geotechnical studies and designs until construction completion.

The second break came in Trishuli-Devighat upgradation project. Then onwards Dr. Shah became an indispensable entity for any study on any hydroelectricity project in Nepal. So he was involved also in Middle Marsyangdi, Indrawati-III, Tamakoshi, Likhu and Khimti for feasibility study and designing the powerhouses, tunnels and dams. In the course of his work in Bhote Koshi he came in contact with the American investors who later invested in Bhote Koshi and they invited him to head the management of the US-Nepal joint venture company towards the end of the construction phase in the project.

Why this change in the job while he was in a very high demand as a rare specialist required for the development of water resources, the prime resource of the country? More importantly, does not he feel the loss of freedom that he had as a consultant? In answer to that Shah says he was finding it increasingly necessary for him to come to management anyway. Even as a consultant, he had to spend more time in managing (negotiating, planning, controlling etc.) than in designing the tunnels and dams.

Now that the company he heads is stabilized, what is next in his agenda? Is he moving to new assignments? He says he always wants to go for something challenging where "I can feel doing something really creative". Therefore, he would love to do new projects, but the situation at present is not conducive for that, he thinks.

What about going abroad as many professionals have been doing? "Had that been my priority I wouldn't have come back at all," replies Dr. Shah.

Explaining his interests now, Dr. Shah says he would love to see the hydroelectric sector come up. He describes that the growth that is taking place in this sector now is only a "mushroom growth". "Except two or three, none of the companies have really taken off. So they are vulnerable. I think I can contribute a lot to this sector through the Independent Power Producers' Association, Nepal (IPPAN) to effectively address the present concerns", he adds.

Sharing his experience in leadership, Dr. Shah says, particularly in such jobs as heavy engineering and management, the best way to lead is by example. "When you set a target for your people you should show them that the target is indeed achievable and then you have to encourage them to achieve that." He also adds that rather than doing the job yourself because you are better in doing that, you should encourage your people to do it at their own level and speed. "That will develop the skills and qualities that you need in them."

When asked to comment on various controversial issues being discussed in the society about the power sector of Nepal, Dr. Shah says he looks at power as a commodity and suggests that it should be developed from commercial point of view, without bogging down too much on the political aspects. "Water is flowing down the rivers. Neither India nor Nepal is benefiting. I think the impasse is because both of the countries are not communicating properly."

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