Determinants of Project Implementation Delay: The Case of Public Projects Financed by Development Bank of Ethiopia Jimma District

Abstract

The main aim of this thesis was to identify the determinants of private project implementation delay financed by DBE Jimma District by taking into account the factors emanated from Project specific and external factors. The study used both qualitative and quantitative data. Primary and Secondary data was used as evidence for the study. In case of census, the study has selected all the financed projects (152) ranging from July, 2015 – June, 2020 for consecutive of five years. Based on this, 135 of agricultural projects and 17 agro-processing projects were selected from the total financed projects at DBE Jimma district. Data collected were analyzed through descriptive statistics and by Binary Logit Model. The study found that poor project management and poor feasibility study of the projects have positive and statistically significant effect on project implementation delay. Therefore, the bank’s project appraisal officers shall have the required project appraisal and analysis competencies and skills. They should get the required trainings so that projects are properly appraised and all the appropriate investment components of the project are incorporated in the project analysis. Concerning project management problem of the projects, the bank has to impose project owners to recruit the required human resources as per the suggestion by the banks appraisal study with stipulated number, knowledge and experience requirements of human resources. Moreover concerned government bodies are also expected to do the same in addition to providing training in order to change the wrong perceived mind of local project owners, because employment creation and sustainability of projects to generate national GDP are among the main goal of the projects established with all investment policy privilege.