The Effect of Local Counterpart Funding Delay on Procurement of Donor Funded Projects
Keywords:
Local, Counterpart, Funding, Projects and DelayAbstract
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. In this research, the effect of Local Counterpart Funding delays on Procurement of Donor Funded Projects is explored by identifying the factors causing delays and the effect of local counterpart funding delay on Donor funded public projects procurement delivery in Ghana. Selected stakeholders were included a questionnaire survey which was used to elicit firsthand information on Local counterpart funds and donor funded project delivery in Ghana. Purposive sampling technique was employed to select 85 respondents during the study. It was revealed that most community projects depend on external support for its execution. However, donor funded community project initiatives have been supported with local counterpart funding and this has been very beneficial to most communities. It was also identified 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. Generally, time and cost overruns have been noted as the key effects of delays in local counterpart funding on donor funded projects.
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