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CoST Ethiopia aggregation study

CoST Ethiopia aggregation study of disclosure and assurance reports

This is a study of the Aggregation, Analysis and Synthesis of Disclosure and Assurance Reports of construction projects covered by CoST-Ethiopia.
Disclosure of the Infrastructure Data Standard (IDS) is one of the three essentials of CoST. Assurance of the disclosed information and demand for accountability based on the disclosed information are the other basics of the Initiative. In its course, CoST-Ethiopia has disclosed 52 construction projects from building, road, and water subsectors. All the projects covered by the disclosure have their own specific Assurance Reports of which findings are short of providing better and comprehensive representation unless aggregated and interpreted. Hence, this report is prepared to document the process and the result of the study conducted to aggregate, analyze and synthesize the findings of the Assurance Reports in light of the key variables such as completeness of project studies, tender process, construction cost overrun, construction time overrun, causes for concern, and other relevant issues that the Assurance Reports have revealed.

The study has aggregated, analyzed and synthesized the important project information of ten (10) building, ten (10) water and thirty two (32) road subsector projects covered by the disclosure and assurance process of CoST – Ethiopia. The total initial contract prices of the study projects amounts to Ethiopian Birr 36,475,343,121 (USD 3,268,239,130.51). As indicated in this report, the building, water and road subsector projects account for 19, 19 and 62 percent of the total volume of the sample size respectively. The study has considered solely the availability of Feasibility and Environmental Impact Assessment (EIA) studies to assess the completeness of project studies. In this regard, both the design and construction of ninety (90) percent of the building subsector projects are carried out in the absence of feasibility and environmental impact assessment studies. Contrary to this, almost all water and road subsector projects are implemented having conducted feasibility and environmental studies that form parts of project identification studies.

Project delay, procurement problems and cost overrun are the major causes for concern that the Assurance Reports pointed out about the building subsector. In the road sector, procurement issues, project delays, contract administration issues and cost overrun are quoted as major causes for concern. In the water subsector, procurement regulation and capacity building issues, contract administration practices, time and cost overrun are all reported to be the causes for concern. The aggregation at industry level shows that procurement problems, project delays, cost overrun, and contract administration problems are the major causes for concern.