CONSTRUCTION DELAY AND COST OVERRUN ANALYSIS IN WATER RESOURCE PROJECT, ETHIOPIAN PERSPECTIVE

Abstract

This study covers the delay risk and cost overrun of water resources construction projects from an Ethiopian perspective. Ethiopia is one of the ancient and non-colonized countries which are reached in natural resource. Though Ethiopia is blessed with a vast hydropower potential of 135 GWh per year and 3.7 million hectares of irrigation land, only (about) less percent of hydropower and 0.75 lack hectares irrigation has been utilized, largely due to various issues encountered during different project stages. This research aims to determine the major contributing factor which delays the construction project and analyses the risk of delay and cost overrun of water resource construction project. To that end, the literature was thoroughly checked, and interviews were conducted with major GERD, GibeIII, and RIB irrigation projects. Additionally, several other private companies Participate to prepare an exhaustive questionnaire. A total of fifty (50) time overrun factors and fifty-five (55) cost overrun factors were included. Applying the most widely used risk identification and ranking techniques, viz., Importance Index, and Fuzzy risk assessment, the study revealed construction methodology issues. Identifying the cause for the project's delay was greatly aided by studying the literature and discussions with various parties. This questionnaire aimed to assess the severity, frequency of occurrence, and significance of the defined courses. The factor was compared and ranked based on the analyses of the relative importance index (RII). Causes of cost overrun were categorized into six groups:-client, contractor, consultant, labor, external, and equipment whereas, time overrun administration, financial, contractor, consultant, and material related factors. These factors were compared and ranked based on the analyses of the relative importance index (RII). Based on the studies, contractor and external-related factors significantly impacted the frequency and severity of cost overrun compared to other sub-groups. Similarly, material-related and financial-related problems were major contributor factors for increasing the frequency and severity of time overrun.