“Factors Affecting success of project Implementation. For the Cases of projects financed by Development Bank of Ethiopia’’

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.