EFFECT OF PROJECT LIFE CYCLE MANAGEMENT ON PERFORMANCE OF OUTPUT-BASED AID PROJECTS IN KENYA: A CASE OF SABASABA WATER PROJECT

Abstract

Sabasabaurban water supply project was undertaken in order to increase the number of people in low-income areas within Murang’a County with access to clean water at their door-step. In carrying out the project, World Bank employed Output-Based Aid scheme to make sure the project achieves its goals. Output-Based Aid funds predetermined project outputs unlike the conventional way of funding inputs. It serves to ensure prudent utilization of funds by shifting performance risk to the organization mandated to deliver services; it also does so by linking outputs to the ultimate payments; hence transparency during project implementation. The study sought to examine the effect of projectinitiation, planning, implementation and project monitoring on the project performance of Output-Based Aid funded Sabasaba urban water supply project. The study adopted value chain theory and utilized predictive correlation design. The target population was 56 employees drawn from Murang’a South Water and Sewerage Company which is the implementing agency for Sabasaba urban water supply project. Structured questionnaire was used to collect data from the respondents. Pilot study was undertaken using 10% of the respondents within the Output Funded Projects at Nakuru Rural Water and Sanitation Company Limited which have similar funding mechanisms. The study results were analysed using correlation and regression analysis undertaken through SPSS software. The study results found that project initiation, project planning, project implementation, and project monitoring had a statistically significant positive correlation with the project performance (F=9.127, p=0.000, p<0.05). Further, the study found that project initiation and project monitoring had regression coefficients of 0.404 and 0.363 respectively. This indicated that a unit change of project initiation led to 0.404 changes in project performance and in the same way a unit change of project monitoring led to 0.363 changes in project performance with the other independent variables held constant. The study as well found that the project initiation and project monitoring had statistically significant influence on the project performance with both p values being less than 5% significance level. On the other hand, the project planning and project implementation were found not to have a statistically significant influence on the project performance. Conclusion was made that funding agencies should adequately enhance their focus on project initiation and project monitoring that werefound to have influence on the project performance of Output-Based Aid funded Sabasaba urban water supply project.