Public Procurment System and Its Effect on the Performance of Road Projects Administered Under Ethiopian Roads Authority
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Date
2022-06
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Addis Ababa University
Abstract
Over the last decade, Ethiopian road construction sector constitute the largest federalgovernment-spending item. However, the sector is criticized by its poor performance of
delivering projects within allocated time and budget. Public procurement system has irreplaceable role on the performance and successful completion of road projects. The aim of
this study was to assess the impact of public procurement system on the performance of road projects administered under ERA. The study identified eight (8) indicators of procurement core
processes as independent variables [Procurement Policy and View, Contract management and Procurement Plan, Procurement and Evaluation method, Solicitation and Evaluation process,
Contract Pricing Structure, Project Delivery System, Conditions of Contract and Contract Administration] and three (3) project performance indicators (cost, schedule and quality), as
dependent variables. A structured questionnaire was used to collect the primary data. The collected data’s were analyzed using inferential statistical models to determine the correlation
and regression among the variables. The study result suggests that cost, schedule and quality performances are significantly correlated to the procurement core processes in descending
order. According the study, we can also draw inference from the population that cost, schedule and quality variables of the procurement system affect the cost, schedule and quality
performance of road projects administered under ERA. Moreover, the study and statistical tests show, procurement policy/view, contract management process/procurement plan, procurement
method and solicitation/evaluation process have positive significant correlation to the performance of road projects administered under ERA The study recommends improvements on
employer’s procurement policy/view, contract management process and organizational assets, along with efficient and effective contract administration. Additionally, practicing alternative
mode of procurement, contracting and project delivery system adaptable to the nature of projects is essential Moreover, national public procurement policy reform based on the current pitfalls
and drawbacks, that could able accommodate future market expansion and changes, is at mostneeded
Key words: public procurement system, performance of road projects, Ethiopia roads authority