A Study Of Critical Factors For Cost Overrun On Rural Electrification Projects In Ghana

For any construction project,cost is a fundamental component.However,one of the most recurrent problems in electrification projects in Ghana is observed to be cost overrun.To assuage this issue,it needs to be studied more.Like other developing countries,Ghana’s rural electrification project is also not without issues of expenses being more than budgets,construction defects and delay to complete projects on time.The eventual outcomes of these results in exceeding cost.In order to avoid cost overrun in rural electrification projects,the factors responsible must be identified and assessed.Hence,this thesis aims to assess the identifiable factors responsible for cost overrun in rural electrification projects in Ghana and generate possible measures to minimize its occurrence.Through a comprehensive study of literature and discussions with experts,12 critical factors causing cost overrun are identified.Questionnaire survey and interviews are conducted using qualified personnel in Ghana for expert opinion to identify and significantly assess the causes of cost overrun.The respondents are selected from the group of the client(Ministry of Power)including project managers,project engineers,consultants,contractors and accountants.The questionnaire responses are analyzed by using relative importance index,as it helps in discovering the contribution a particular variable makes to the forecast of a decisive factor variable,which result in identifying the most significant among the 12 identified critical factors of cost overruns in rural electrification project in Ghana.The result shows that inaccurate estimates,fraudulent practices and kickbacks,frequent changes in scope of works,contract variations in rural electrification project implementation,material shortage in rural electrification project implementation and Frequent Political interference in the selection of beneficiary communities are the most significant factors for cost overrun in Ghana’s rural electrification projects.It is recommended that amongst other preventive measures,the Ministry of Power and facility suppliers(Contractors)should ensure proper project planning,re-estimating,that requires project risk assessment and compliance with regulatory frameworks that governs contract agreements.