Project Failures and Factors: The Case of Four Public Sector Undertakings in IlIu-Ababora Zone, Oromia Region

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Date

2012

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Addis Ababa University

Abstract

Development pl'Ojects are the means by which development policies and plans are translated into practice and have a lion's share in improving livelihoods of the community. In less developed countries where Ethiopia belongs to, project implementation and management is characterized by failures. Project implementation failure is explained as delivering a project late, delivering a project over budget and delivering a project which does not meet scope requirements; however a successfully managed project is the one that is completed at the specified level of quality; on or before the deadline; and within the planned budget. Additionally, client satisfaction indicates success and possibility of replication and sustainability. The overall objective of this study is to examine whether the public sector projects are successfully implemented orfail; thereby to find out the major factors contributing to the failures; and propose some easing strategies to surmount the identified challenges for the future successful project execution in the zonal level public sectors of Illu-Ababora Zone, Oromia Region. For this, a case study research approach which employs both qualitative and quantitative data collected ji'om various primary and secondOlY sources was used. In identifYing respondents, pwposive sampling strategy was used. Data collection tools and techniques include questionnaire, key informant interview guide, focus group discussion guide, all used to gather primary data; and a format for consolidating information ji'om secondOlY data. Quantitative data were processed using SPSS while the qualitative data were narrated qualitatively. In quantitative analysis, both descriptive statistics (like Mean, Mean difference, percentages, and ji-equencies); and inferential statistics (like paired sample t-test, Pearson Product Moment correlation and binOlY logistic regression) were applied. The findings of the study ji'om the assessment of the three project parameters (cost, time and quality) indicated that most public sector projects undertaken by zone level public sectors are characterized by failures. According to percentages of responses; all projects (100%) were delayed for longer time than planned schedule; 72.1% were completed with quality problems; and 69.8% required additional budget for completion. Similarly, ji'Oln 75 public projects implemented during the past five years (2007-2011), 70(93.3%) were completed with some problems while 5(6. 7%) were totally failed (callceled). From the 70 completed projects, all of them (100%) were delayed for longer time than the planned schedule; 41 (58.6%) projects required additional cost; and 40(57.1%) projects were completed with less quality than the predetermined levels. The major factors for these project failures are categorized into four major areas: Organizational/institutional related factors; PhYSical, climatic and inji'astructure related factors; Poor project-cycle management; and Contract administration, price and contractor related factor. Moreover, among many, inaccessibility of the project sites due to lack of inji'astructure development and poor project monitoring are found to be the two most infiuential factors. For the fillure successfiil public project imp lementation and management in the zone, all of the identified challenges under the four major areas need proper treatment. Similarly, the two most ilifluential factors (development of rural roads and bridges for accessibility of sites; and improved ji'equencies of monitoring for early detection of problems and keep projects on course) seek particular emphasis.

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Keywords

Project Failures and Factors

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