THE EFFECTS OF PROJECT COST MANAGEMENT ON THE PERFORMANCE OF DONOR FUNDED HEALTH PROJECT: THE CASE OF ADDIS ABABA HEALTH BUREAU

Abstract

Cost management in the public health project is critical to the country's long term Socioeconomic and environmental growth, beneficiary ownership, and project continuity. In Africa project performance of public health projects is not guaranteed with most of the projects failed to achieve their long-term goals with numerous costs overrun and schedule delays. This study identified three variables that influence cost management on the performance of donor health projects in Addis Ababa Health Bureau. Specifically, this study looked at Project Cost control, Project Resource planning, Project, and cost budgeting. The target population was 250 professionals working on donor funded health projects where a sample of 115 was drawn. Key respondent in this study were senior managers, project managers, medical officers, and assistances. where 115 questionnaires were administered to them. 80 of the questionnaire were completed & retrieved successfully. The response rate for the study was 70%. The study conducted both explanatory and descriptive statistics. The study found that Project Cost control, Project Resource planning, Project cost budgeting significantly influenced performance of donor funded projects in target organization. The variables explained only by 17.7% of change in performance of donor funded project in target organization. The study recommended more focus should be given for other variables out of cost control, this is because the two variables, resource planning and cost budgeting shows slight effect in determining the project performance.