QuestionCaseOn 28 November 1975 East Timor declared itself independent from Portugal and was invaded and occupied by Indonesian forces nine days later. It was incorporated into Indonesia in July 1976 as the province of Timor Timur (East Timor). After many years of military conflict on 30 August 1999, in a UN-supervised popular referendum, an overwhelming majority of the people of Timor-Leste (East Timor) voted for independence from Indonesia. East Timorese speak Portuguese.As part of the reconstruction program of Timor-Leste Autonomous Medical Stores called Servico Autnomo de Medicamentos e Equipamentos de Sade (SAMES) was created. The broad objective of the SAMES is to establish a viable system to ensure a constant supply of high quality, affordable, safe and effective essential drugs and medical supplies for the population of Timor-Leste. The core functions of SAMES are the procurement, storage and distribution of drugs and medical supplies for the district public health sector facilities and Hospitals of Timor-Leste. This large project is being funded by the Government of Australia to the tune of AUD$50 million (1 AUD = 0.98111 CAN). Two-fifths of project funds have been set aside for project staffing.The Government of East Timor has recently advertised for a team of project consultants to build capacity among the existing SAMES staff and to provide technical assistance in the procurement of health commodities, especially pharmaceutical products.Your company Global Health, was established in Toronto in 2002 and specializes in procurement activities in the health sector. Since its startup, Global Health has managed about 5 small to medium sized projects, 3 of which have been in Toronto, 1 in Haiti and the 5th in Guyana which is on-going. Global Health has a limited staff of procurement specialist but has established a reputation among its peers in Toronto for the quality of its work.Global Health’s management has won the tender to supply project management services and has partnered with an Indonesian company, Healthy Lifestyle Jakarta (HLJ) to work with them as their local counterparts. HLJ is a medium sized company with a good reputation for on-time and within budget project delivery in region. HLJ combines the necessary experience and competence with a significant cost advantage over other regional competing vendors. As the Global Health’s PM for this project you have discovered that there is a high staff turnover rate at HLJ making it difficult to build and maintain the required know-how. You also note that among other things the labor laws in East Timor are very restrictive and have been a major impediment to other projects which has often led to significant delays cost overruns.Risk Identification?HistoryWorld History PMGT 730

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