Effect of Project Monitoring and Evaluation Practice on project performance: The Case of Performance-Based Financing in Addis Ababa

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Date

2024-10

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Addis Ababa University

Abstract

financing that incentivizes improved performance in various sectors, and when it is applied in the health sector, it is defined as the transfer of money to health facilities after predefined results have been achieved. It is a project led by CORDAID an Organization owned by the kingdom of Netherlands. The project is applied in different regions of Ethiopia such as Oromia, Amara, Somali, SNNP, and Addis Ababa. This study tries to find out the effects of monitoring and evaluation on project performance in one of the newly implemented areas which is Addis Ababa. The study is conducted in 8 health facilities that the project is implemented and stakeholders that are involved in the project. The study used mixed research design, combining both quantitative and qualitative data collection methods to comprehensively investigate the effects of monitoring and evaluation on project performance. Sample of 202 individuals was targeted using purposive sampling technique which included M&E professionals, management staffs, department and facility heads from stakeholders involved in the project including CORDAID, Ministry of Health, Ethiopian Health Insurance Service, AARHB and the 8 health facilities. Self-administered questionnaire and key informant interview was used to get the quantitative and qualitative data and 176 respondents was involved in the study with 26 non respondents. The quantitative data was analyzed using SPSS version 26, by which descriptive analysis, correlation and multiple linear regression was done. Thematic analysis was done for the qualitative data from the key informant interviews, where recurring themes and patterns are coded and categorized to highlight key insights. The results of the study of the quantitative data analysis show strong positive correlations between the variables M&E Practices, Key Performance Indicators, Stakeholder Engagement and PBF Project Performance; and a non-significant very weak to almost no linear relationship between challenges and project performance which can be translated as mitigation of challenges faced in the M&E system through other variables. The results from the qualitative analysis show that there is perception of positive impact of monitoring and evaluation practices on project performance with challenges such as non-alignment of the KPIs with MOH guideline, inappropriate weighting of some of the KPIs, capacity difference of the M&E professionals and lesser engagement of some of the stakeholders as some of the challenges raised by the key informants. From the findings the researcher recommends aligning the KPIs with the guideline, reassessment of some of the weights of the KPIs, more engagement of the involved stakeholders and capacity building through comprehensive targeted training to the M&E professionals. And future studies involving secondary data analysis and incorporation of other regions that the project is implemented will give improved and more tangible findings to the study. Key words – Performance Based Financing, Monitoring and Evaluation, Project Performance, Key Performance Indicators, Stakeholder Engagement

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