Factors Affecting Project Implementation for the Case of Selected Projects Financed By Development Bank of Ethiopia

Abstract

Despite its importance of successfully implemented projects in socio economic aspects; delay in project implementation is found to be a main problem in developing countries like Ethiopia. Delay in implementation has many consequences such as inflated project cost and poor quality and thereafter affects the economy as a whole. The Purpose of this study is to examine factors that are affecting project implementation; for the case of selected projects financed by DBE. To meet objective under consideration, the study has used both primary and secondary data sources. To collect primary data’s, Questioners were distributed to 131 randomly selected project managers. Moreover, secondary data is collected from projects files that were financed from 2017 to 2022. Descriptive statistics such as mean, standard deviation and percentages were employed to describe the collected data. Further, data analysis on the relationship between dependent and independent project is undertaken using Binary logistic regression model. The data is analyzed by using the Statistical Package for Social Sciences (SPSS) version 24. The results of the study showed that project planning problems such as Missing items, under estimation of budget during project appraisal; Project follow-up, project management experience and foreign currency availability are factors that are affecting project implementation schedule at the study area. Missing items, budget under estimation and lack of foreign currency are those that are negatively affecting the project implementation. Accordingly, the study suggests that project follow-up and monitoring, project planning and project management should be strengthened by the Bank.