Factors Affecting Project Implementation Delay And Its Impact On Loan Recovery: A Case Study Of Development Bank Of Ethiopia South West Addis Ababa District

Abstract

Project is the building block of economy that nations establish it up on either problem or opportunity. But the delay in projects has negative consequences to the organization as well as to the nation. This study therefore intended to explore the determining factors for implementation delay and loan recovery of the projects in Development bank of Ethiopia at South west Addis Ababa DistrictThe design used by the study was the mix of descriptive and explanatory. The researcher used samples taken from project financed from year 2017-2022 by Development bank of Ethiopia South west Addis Ababa District. The objective of this study is to identify the major determinants of project implementation delay and loan recovery. The research targeted projects financed by the Development Bank of Ethiopia. The independent variables causing project implementation delay are project owners, Project management, project cost escalation, Developmental Bank of Ethiopia related factors, external factors related, and sex (Male), and the dependent variable is project delay. The study considered 13 projects through stratified sampling method from projects financed by the DevelopmentBank. Of Ethiopia Data were collected from randomly selected Bank manager, banks employeesresponse using structured questionnaire surveys and secondary data were also used. Data were analyzed using linear regression method,showed that the hypothesized predicting variable explain 71% variation in the dependent variable is explained by the independent variables According to the findings, a strong, positive and significant relationship was observed between delay factors considered as independent variables and project delay. Among the six delay factors project owners, Project management, project cost escalation, Developmental Bank of Ethiopia related factors, external factors related, and sex (Male), wasidentified and concluded as the determinants with the highest influence on project completion delay. So that any business initiators should select project those are more familiar and interesting for them and scope of project should be established, controlled and must be clearly defined and be limited.