Abstract:
The Development Bank of Ethiopia is a specialized financial institution established by the
government to promote the national development agenda through development finance and
close technical support to viable projects. Yet, most of the projects financed by the Bank have
failed to meet project success criteria. The project is said to be successfully implemented when
it meets three iron triangles; Budget, Cost and quality and also meeting objective of
establishment. The purpose of the study was to examine major factors that are affecting the
success of projects at the study area, South west Addis Ababa. To fulfill objective under
consideration factors that are affecting project success are classified into three Major factor:
Bank related factors, Borrowers related factors and external factors. The study has used
primary data sources to examine impact of factors on project success. Questioner were
distributed to project managers to examine factors affecting the success of projects. Total of 101
project managers were sampled randomly were responded successfully. The data was processed
using the Statistical Package for Social Sciences (SPSS) version 24. Descriptive statistics were
employed to analyze quantitative data. Further, Binary logistic regression is used to analyze
factors affecting project implementation success. Accordingly, frequent follow-up practice by
the bank is a positive and significant predictor of project success. Besides, contractor
disagreement with the Borrowers is found to be a negative and significant predictor of project
success. Whereas, infrastructure (power, water.) was a passive and significant predictor of
causes project implementation success. It is also identified that foreign currency fluctuation,
and technology complexity is significant determinant of causes project success with p<05. while
equity contribution, management experience, cost under estimation, input shortage, government
supports, political view on project and delay in machinery supply are non-significant
determinants of causes project success with p>05.
