Effect of Local Counterpart Funding Delay on Procurement of Donor Funded Projects

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Local counterpart funding and community development in infrastructural project delivery has been very important in the lives of the rural poor. This is by improving the quality of life of the people through improved access to basic infrastructural development and services. Lack of proper flow of counterpart funding has affected many projects in Ghana but the impact of foreign aid to developing countries has been so helpful. This has improved public procurement delivery performance in the country. The country has received overwhelming development assistance from donor partners over the years. The Government of Ghana in an effort to protect and to effectively utilize these funds partly provides proportion of the needed funds to ensure that Donor funds are properly managed and used for the intended purpose. This research is aimed at identifying the effect of Local Counterpart Funding delays on Procurement of Donor Funded Projects and offer recommendations to minimise them. To achieve this aim, a questionnaire was designed and distributed to some selected stakeholders to solicit first hand information on Local counterpart funds and donor funded project delivery in Ghana. The study employed purposive sampling technique to select 85 subjects for the study. The study revealed that most community projects depend on external support for project execution. However, community initiatives have been supported with local counterpart funding and this has been very beneficial to most communities. The study revealed that the most critical variables influencing local counterpart funding and donor funded project delivery are: bureaucracy in the procurement system, acquisition of land, poor information dissemination and lack of communication between parties. In conclusion, the study identified time and cost overrun as the effects of delays in local counterpart funding.
A thesis submitted to the Department of Building Technology in partial fulfilment of the requirements for the degree of Master of Philosophy (MPHIL) in Procurement Management.