EVALUATION OF OMO - KURAZ 1 SUGAR FACTORY PROJECT USING OECD CRITERIA

Abstract

These days Ethiopia is building around 8 sugar factories that has strategically benefit for the country economy. Even though many peoples are anticipated on the projects, due to different reason the projects are tarry, KURAZ I is one of them. In this research using OECD (Organization for Economic Co-operation and Development) evaluation criteria; the relevance, effectiveness and efficiency aspects of the project is analyzed in detail. Descriptive research approach is selected for this study. Data is collected for the study using document review and semi-structured interview. The collected Data was analyzed and interpreted using descriptive analysis technique and earned value analysis. The study found even though the project is consistent with local community need, country requirement and global priorities, it’s failed to achieve cost, quality and schedule requirement of the project, and if these constraints of projects is can’t be achieved it can be called ‘failed project’(George, 2017). Using semi-structured interview the reason behind the project is classified into two categories; the first internal causes of project failure are: Lack of experience in contractors and sub-contractors, corruption, lack of skills and inexperience of project management knowledge and absence of good contract and procurement management are identified, from external side; Fluctuation of Prices, Political situation of the country and Political economy of Ethiopia are found. Based on this finding, recommendations are made to overcome these challenges. Accordingly, Termination of the contract with METEC must be the first corrective action of the sugar corporation, for further projects; contingency plans to cover the material price escalation and stopping government officials interferences in their work. They should also make contract with project management Consultant because they are helping organization in the project by managing the project and related specific activities. The research findings will be expected to assist the sugar corporation.