Causes of project implementation delay in the Ethiopian Electric Utility Enterprise: the case of construction projects in Universal Electric Access Program

Abstract

This study identifies the major sources of delay in the implementation of construction projects in the Ethiopian electric utility enterprise. It also investigates the magnitude of schedule variance and cost overrun experienced by the Universal Electric Access Program (UEAP)due to implementation delay. Primary data were generated from 239 individuals working for UEAP in Amhara, Tigray, Oromia, SNNP, Afar, Gambela, Benshanguel Gumuz, Harari, and Somali regional states and from Dire Dawa city administration. Of these, 168 were employees and 71 of them were contractors. Samples were drawn through stratified sampling procedure. Secondary data were collected from documents that have information about the 41 project examined. Data were analyzed both quantitatively and qualitatively. Quantitative data were analyzed using the Relative Importance Index (RII), schedule variance index, cost performance index and paired t-test. Qualitative data were analyzed using frequency and percentages as well as qualitative description of interview responses. The results showed that 28% of the delays are due to factors related to the employers followed by 23% to factors associated to contractors. Delay in material supply and redesigning of plans accounted 17% and 12% respectively. The overall average time delay of the 41 projects was 2.48 years while they were expected to be completed in 8 months. The projects encountered a 44% cost overrun compared to their initial budget plans. The paired t-test analysis showed a statistically significant difference between planned completion time and actual completion time, and planned budget and budget at completion. Therefore, the major sources of delay should be the focus of the Ethiopian Electric Utility Enterprise.

Keywords: Delay, construction projects, cost overrun, schedule variance,  sources of delay, Electric utility enterprise and Ethiopia