Management Of Construction Development Projects Financed Through Loans – CAG Report

Development is a process that creates growth, progress, positive change and transformations in the physical, economic, environmental, social and demographic components of a country. Usually, organizations implement development projects to strengthen the capabilities of local institutions and promote community self-reliance. Therefore, development requires effective management of construction development projects, among other things. Tanzania has implemented various construction development since independence. These projects include the construction of water supply schemes, roads, harbours, airports, factories, electricity supply and irrigation infrastructures, buildings for hospitals, markets, and school infrastructures.

This audit report presents findings from assessment of -construction development projects financed through loans and implemented in the transportation, energy and water sectors.

Proper management of development projects financed through loans is vital to ensure that projects are timely completed so as to reduce interest charges for the loans. Apart from that, proper management of such projects is important because it ensures timely repayment of loans when the projects start to provide services. It is therefore important for the Ministry of Finance and Planning to make sure that all issues that affect timely completion of these projects are effectively addressed.

The main objective of the audit was to assess whether the Ministry of Finance and Planning ensured effective management of development projects financed through loans so as to minimize delays, cost overrun and prevent avoidable cost burdens associated with loans charges. The audit mainly focused on assessing the effectiveness of planning, loans management, coordination and monitoring and evaluation of the performance of development projects financed through loans.