Impact of Cost Overruns and Funding Challenges on Electrical Infrastructure Project Performance in TANESCO Geita Zone, Tanzania

Abstract

The study assessed the impact of cost overruns and funding challenges on electrical infrastructure project performance in TANESCO Geita Zone, Tanzania. The study used a quantitative research approach and explanatory research design. The sample size was 80 personnel (project managers, engineers, finance officers, and procurement staff) directly involved in TANESCO electrical infrastructure projects in Geita Zone. A census sampling technique was used for selecting the respondents. Structured questionnaires were used for gathering information. Quantitative data were analyzed through mean scores and standard deviations and multiple linear regression analysis. The findings revealed that, cost overruns (β = -0.45, p = 0.001) and funding challenges (β = -0.37, p = 0.018) have a negative and statistically significant effect on project performance. This study concludes that; cost overruns and funding challenges are critical barriers to effective implementation of electrical infrastructure projects in TANESCO Geita Zone. Both factors significantly compromise project performance, delaying project completion and reducing the quality and reliability of electricity delivery. It is recommended that policy makers should ensure timely budget allocation and release of funds for electrical infrastructure projects. The TANESCO management in Geita Zone should strengthen project cost management and monitoring systems. Also, it should implement risk assessment frameworks to anticipate cost escalations and funding shortfalls. 

Keywords:       cost overruns, funding challenges, electrical infrastructure, project performance, Tanzania.