| Abstract: | The government of Ethiopia has invested significant sums to build the countries sugar production capacity with the underlying goal of becoming one of ten largest global producers by 2023. Despite putting this as one of development goal for a country, the construction of the sugar projects is still lagging far behind the targeted goal of solving the sugar shortage of the country and becoming a source of foreign currency earning. Taking this into consideration time and cost overruns is one of the major problem of sugar construction projects. Therefore, the goal of this research is to make assessments on the factors that cause delay on one of the sugar project named Tana Beles sugar factory with respect to time and cost overruns on the project, and to recommend resolutions.
The research uses desk study and questionnaire survey for data collection. The analysis are made in two parts desk study on one part and questionnaire survey on the other. Poor feasibility study and site investigation, Improper planning and designing, Capacity limitation, Poor procurement system, Contract management problem are among the main time and cost overrun contributing factors obtained from desk study. While Improper planning and scheduling, Unrealistic contract duration, Improper and poor project feasibility study etc. are some of time overrun factors and Poor project (site) management/, Wastage, etc. are among the list of the main cost overrun factors from questionnaire survey. And effects like; less return on investment for client, high price of sugar for end user, Abandoned and termination of project are observed on the project due to the problem of time and cost overrun. Finally, feasibility study related, Service and infrastructure related, design and planning related, stake holder management related, procurement and contract management related, and Human resource management related recommendations are given. |
