Factors Affecting Public Infrastructure Project Financing: Incase Of Ambo Town, Oromia Regional State, Ethiopia

Abstract

This study was being conducted in Ambo Town Administration regarding factors affecting public infrastructure project financing. The purpose of this study was used to identify factors affecting public infrastructure project financing (corruption, inflation rates, employee’s performance, government policy, organizational structure and infrastructure time management). The researcher was being used mixed research approach and both descriptive and explanatory research design. Primary sources of the data were employed and collected from project committee and Administration public sectors employees, including Construction Office, Roads Authority, Finance and economic development cooperation Office, Health office, urban development and housing Office and Mayor Office through questionnaires and interviews. After all necessary data were collected, edited, coded and arranged accordingly, it’s analyzed by using statistical package for social science Version 26 and multiple linear regression model was employed. As regression results indicated that Infrastructure financing is negatively affected by corruption and inflation rates. Additionally, employee’s performance, government policy, organizational structure and infrastructure time management positively affected public infrastructure financing. The study recommended that government should have to take high attention during adjusting the capital budget to minimize the effect of inflation rate and assigning the right person at the right position and reporting the causes of corruption to take the right measurement at the right time.