INVESTMENT PROJECTS FAILURE: FACTORS, SYMPTOMS AND SOLUTIONS (CASE STUDY ON DEVELOPMENT BANK OF ETHIOPIA)

Abstract

Projects play vital role in the implementation of national policies and strategies. That is way World Bank defined project as building block of development. However, projects can fail because of uncertainty to the future. Therefore, studying of project failure gives opportunity for learning from previous mistakes and improve the decision making process. The concept here is to take advantage of the failure and turn the negative feeling around by analyzing what went wrong and correcting it for the future. This study identifies the major investment projects failure; factors, symptoms and solutions of DBE financed projects. The units of analysis in the study is the projects which is being financed From the period July 01, 2012 to June 30, 2016 and which has been started operation and stayed for a minimum of one year and the target population is 26 project promoters and project manager taken from the financed projects and 24 credit performers are considered, thus the total number of respondents are 50 since these population is very low and manageable, there is no need to take sample. The finding of this study portrayed that the cause of project failure financed by development bank of Ethiopia are factors in connection with project specific, factors in connection with credit management, factors in connection with macro environment related factors and factors in connection with socio political environments.