Evaluation On Cost And Schedule Overrun Of Project Financing A Case Study On Commercial Bank Of Ethiopia

Finance is one of the inputs for the development of the economic supplied mostlyrnby the financial sector. Project financing is funding of a particular investment unitrnin which a lender is convinced to look initially to viability in marketability,rntechnical aspects, and financial, environmental friendly and sound projectrnmanagement. As CBE(Commercial Bank of Ethiopia ) . Align with this thernresearch was undertaken with the objective of evaluating forecasted cost andrntime completion overrun of projects financing by Commercial Bank of Ethiopia.rnThe study deployed quantitative and qualitative research approach; descriptiverndesign to construct meaning from extracted data collected from primary andrnsecond sources through survey and document review Accordingly, the studyrncame up with the findings that factors CBE was facing in project financingrnemanate from three determinate factors namely the lender .Promoter andrnexternal environment. The study, hence, concluded project financing challenges inrnCBE were external environment specific (data/information, financialrnintermediaries, economic & political environment and infrastructure), borrowerrnspecific (character of the borrower, nature of the project and managementrnproblem of the project promoter) and bank related (character of the bank, creditrnpolicy and procedure and credit appraisal & approval) in decreasing order ofrnmean value of major category. From the reached conclusion in the study, it isrnrecommended the bank and concerned parties should take respective actions torntackle the challenges timey.

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