Assessment of procurement challenges in implementing Ethiopian Sugar Corporation projects the case of Kessem Sugar Factory project

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Date

2018-08-06

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Addis Ababa University

Abstract

The study focused on procurement challenges in ESC. This study was designed to fill the gap by identifying procurement challenges to deliver ESC project on time and within the allocated budget. It sought to answer the questions: What are challenges the project procurement and their influence in the of ESC project in the case of kessem sugar factory project? Consequently, it proposed to achieve the objectives: to assess the challenges the project procurement and their impact in the of ESC project in the case of kessem project and to examine factors need to be improved in order to overcome the procurement challenges in ESC project in the case of kessem sugar factory project. The researcher used questionnaires to collect quantitative data, distributed to purposefully selected respondents from project procurement staffs of ESC and used key informant interview for qualitative data collection for selected project managers, staffs, and procurement managers. Methodologically, this study was designed to be descriptive.The study presented in five chapters each with various sections through which the researcher has tried to discuss the different issues related procurement challenges on the project performance.The key findings of the study were that project procurement function affected by various factors. Among them the performance of main contractor, sub-contractors, suppliers and venders, the performance of procurement staff and consultants in practicing the project procurement and quality of the work performed and equipment supplied are the major project procurement challenges which affected the performance of ESC Kessem sugar factory project. The findings of this study should be understood and evaluated in light of the limitations of the study. This study is especially helpful to ESC projects and other similar projects. It should be particularly helpful to the project procurement team and project managers whose responsibilities include attainment of the project objective to the desired customer satisfaction. The study recommends to ESC project procurement team and top management to look at the challenges of project the procurement discussed herein and adopts the suggested recommendations including usage of recent technology, standard contractor selection criteria, skilled and experienced procurement staff, organized list of contractor, subcontractor, suppliers and recorded performance in order to overcome the challenges. Further study should be directed to the project procurement for further improvement.

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Keywords

Procurement challenge, Kessem Sugar Factory, Contractor performance

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