CHALLENGES OF DONOR FINANCED DEVELOPMENT PROJECT

Abstract

The main purpose of the study is to investigate the Challenges of Donor Financed Development Project in Ethiopian Public Sector at federal level the case of European Union Cooperation. In light of this objective, the study adopted descriptive research design; data was collected through questionnaires and interview. The study adopted both quantitative and qualitative method of research approach that is mixed approach. 34 semi-structured questionnaires were constructed and distributed through e-mail and personally for target populations whereas structured interview were conducted personally a face to face interview with the total population of the project staff who are working in federal level Public Sector, National Authorizing Office and European Union Delegation to Ethiopia. The data collected through questionnaire were analyzed using statistical tools such as frequency, mean and standard deviation for descriptive statistics quantitatively whereas interview was analyzed using summarizing of the respondents responses. The research findings indicate that the most important for unsuccessful implementation of development project in Ethiopian public sector are: unmotivated project staff, high turnover of project staff ,low salary scale, rigged and complex nature of donor rules and procedures, lack of capacity of project planner, inappropriate project manager, lack of strong ownership of a project, delays of progress and implementation report, unclear lines of Authority and responsibility due to structural of the organization, and so forth. Those the above challenges result show that, our country classified as non-efficient, loss of foreign currency, low performance and failure of a development project, and lack of additional resource from development partner. In conclusion, it appears that Ethiopian public sector suffers from the above challenges. Based on the finding of the study, the researcher forwards some recommendations to stakeholders of European Union development partner and suggest for further researches.