DETERMINANT OF PROJECT IMPLEMENTATION DELAY (THE CASE OF PROJECT FINANCED BY DEVELOPMENT BANK OF ETHIOPIA, GONDAR DISTRICT)

Abstract

Development bank of Ethiopia is one of state-owned financial institutions which support economic growth and development of Ethiopia by providing short- term, medium- term and long -term loans to viable investment projects prioritized by the government. Currently the bank has 12 Districts and 104 branches. The objective of the study is to examine the determinants of the project implementation delay in DBE Gondar district financed projects. The data is collected from both primary and secondary sources. The primary data was collected using questionnaires from Customers and Secondary data was collected from the project’s files, recorded documents by bank and different documents such as annual reports, journals, articles, various books, websites, and other published and unpublished sources. To conduct this study Census data is collected from 137 project owners/managers using a questionnaire and the data analysed using linear multiple regression model. The results of multiple linear regression indicate poor project initiation, poor infrastructure coverage, project poor loan processing practice, poor follow-up and feedback, and Poor suppliers’ response have significant effects/influence on project implementation delay. But not cost escalation which is insignificant. This study recommends the bank and customers should check viability and feasibility of project to minimize projects delay during their implementation stage. The bank should also timely conduct implementation follow up and give technical support for the project promoters. Other concerned stakeholders should also closely support for the smooth operation of projects by fulfilling necessary utilities and infrastructure.