DISSERTATION Final
DISSERTATION Final
DISSERTATION Final
By
MBA/PM/17/01/827
SEPTEMBER 2019
DECLARATION
ii
APPROVAL
National Feeder roads project –RTDA, RWANDA.” has been submitted to the School of
Supervisor
Signature: …………………………….
Date: …………………………………..
iii
DEDICATION
Carmene IRAKOZE
Axel NKURU
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ACKNOWLEDGEMENT
This work is a fruit of assiduous work with support and help of several persons. I take the
occasion to thank first the Almighty God for all he has done to me and what he is going to
do to me.
To my parents and siblings, I will be forever indebted to you for moral and material
support.
To the RTDA and its collaborators (NPD, HORIZON, TECOS, CCC, HYCOGEC,
CRBC, and STECOL) that open its doors and was subject of my research, for their time
To family members, friends, classmates thank you for your boosts and inclusion.
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TABLE OF CONTENTS
DECLARATION............................................................................................................... ii
DEDICATION.................................................................................................................. iv
ACKNOWLEDGEMENT .................................................................................................v
INTRODUCTION..............................................................................................................1
1.4 Hypothesis......................................................................................................................7
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1.5.3 Geographical scope .....................................................................................................8
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2.4. Research gap ...............................................................................................................26
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4.2.1 Fund risk management ..............................................................................................36
REFERENCES .................................................................................................................56
APPENDIX 1: QUESTIONNAIRE................................................................................63
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LIST OF TABLES
Table 2.1: Risk management principles ...................................................................... 19
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LIST OF FIGURES
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ABBREVIATIONS
EU European Union
ICI & IDC Investment Company Institute & Independent Directors Council
RM Risk Management
UN United Nations
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ABSTRACT
The study sought to examine the effect of risk management on the performance of road
project, with a focus on Rwanda Transport Development Agency specifically the national
feeder roads project. It was assumed that effective risk management in road project
execution is key to achieving the intended performance standard. The method of research
design for this study were a cross sectional and correlational design. A stratified sampling
with a target population of 32 respondents from the Rwanda Transport Development
Agency and its collaborators had been chosen. Descriptive statistics such as mean,
frequency, Pearson correlation and regression analysis were used when primary data was
collected through a questionnaire survey. MS Excel was used too for a quick analysis of
mean. Collected data had been analyzed with the aid of the SPSS software, MS Excel to
set relationship between risk management and the performance of road project. The
results of the study indicated that fund RM, environmental RM and human resource RM
are significant factors for performance on road project in Rwanda except for operational
and technical RM. The study concluded that fund RM, environmental RM, human
resource RM and operational and technical RM are main factors as they have effect for a
better performance in road project in Rwanda. The study recommended that emphasis
should be made on human resource RM and operational and technical RM as the get
negative impact on performance on road project.
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CHAPTER ONE
INTRODUCTION
The US road network exceeds 6.58 million kilometers in total length, making it the
world‘s longest and biggest road network. A high quality transportation network is vital
to a top performing economy. From the Erie Canal in 1807, to the Transcontinental
Railroad in 1869, to the Interstate Highway System in the 1950s were instrumental in
putting the country on a path for sustainable economic growth, productivity increases, an
unrivalled national market for good and services, and international competitiveness
Within Europe, ownership and responsibility for road infrastructure in Sweden is divided
between the state, municipalities, and individuals. Individuals have responsibility for
their private roads whereas the state and municipalities have responsibility for public
roads. Swedish highways (i.e., divided highways) are all state owned. Because of the
division of power between the state and the municipalities, road infrastructure projects are
Until now, Africa is still the continent with a high level of resources with less
infrastructures comparing to its population rate. Furthermore, the World Bank, the
African development bank and presidents are making efforts to provide infrastructures
such as roads, schools, hospitals, electricity, water and sanitation, telecoms to name but a
few. Public projects contain main sectors that are the open-door for important
requirements for the development of an economy. This increases the GDP of the country
and the welfare of the population. In addition, higher public capital expenditures could
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boost GDP immediately through stimulation of aggregate demand in economies operating
The Goal 9 of 2015 UN general assembly resolution point out that its target was to ―Build
construction is the area where the World Bank lends more than in education, health and
social services combined (Berg, 2015) China, rather than conquer Africa through the
barrel of a gun, it is using the muscle of money. Roads in Ethiopia, pipelines in Sudan,
railways in Nigeria, power in Ghana – these are just a few of the torrent of billion-dollar
projects that China has flooded Africa with in the last five years, each one part of a well-
Roads are one of the most economically important infrastructures in Rwanda, given the
fact that more than 95% of the country‘s international trade is handled by land and there
are hardly any land alternatives (such as railway). Internal communication is also almost
exclusively by road (REMA, 2009). A road can be defined as a wide way between places,
especially one surfaced for use by vehicles (South African Concise Oxford Dictionary,
2002). By linking producers to markets, workers to jobs, students to school, and the sick
to hospitals, roads are vital to any development agenda (Berg, 2015).Three actors are
involved in a road project, namely; the owner (RTDA) who oversees and pays, the
consultant (Tecos, CCC, Hycogec, etc.) who advises and the contractor (NPD, Horizon,
Government and organizations usually embark on different projects with the aim of
creating new service or improving the functional efficiency of the existing ones
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(Pūlmanis, 2013).Since 2008, the government of Rwanda sets the feeder road in order to
the Ministry of Agriculture and Animal Resources together with other key stakeholders
developed the Feeder Roads Policy. The government of Rwanda fully recognizes the
attainment of the goals of the Government‘s Vision 2020 which consists of transforming
integrated and competitive economy. The major focus of the Labour Intensive Public
Works Sector supports the establishment and rehabilitation of infrastructures that form
Much of the existing 30,000kms of Rwanda‘s roads are poorly designed with poor
conditions with a typical roughness higher than 10%. It is said that 70% of roads kms are
in poor conditions. Rwanda has around 70,000 vehicles and 70,000 motorcycles servicing
public and private transport of goods and passengers. The country records about 25,000
vehicle registrations per year. Based on traffic counts, possibly 20,000 vehicles and
20,000 motorcycles are regularly serving D-1 and D-2 roads, where motorcycles are 30-
40% of motorized traffic. Bicycles provide many short-distance services for goods and
passengers. The vehicle traffic across the roads network is growing at about 15% per
year, while agriculture sector and rural population are growing at 7% and 2.5%,
and strategic planning, the creation of a transport enabling environment, and setting of
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As project risks are always in the future, roads project faced a lot of risks from the
planning phase to the completion. The allocation of risk is based upon a review of a
number of road projects which review considered issues on a country specific basis taking
into account the law, practice, customs and economics associated with the project and the
country. The risks are common to many of the projects reviewed (and many others) but
the solutions adopted will be case specific. Risk distribution is based on producing risk
implementation of risk identification, analysis and management are the key of success to
performance.
Project risk management is one of the nine most critical parts of project commissioning
according to PMI. This indicates a strong relationship between managing risks and a
project success. The question relies on the hypothesis that there is performance of road
project when risk management skill is adequately assigned during the whole process of
the project. As road project costs in time and money, bad outcome will hurt tax payers,
bring less proud in the government deeds from its population. The task of risk
management is to deal with risks that could come from fund allocated to the project,
training all managed qualitatively and in time. Many industries have become more
proactive and aware of using analyses in projects. Likewise, risk management has become
a timely issue widely discussed across industries. However, with regard to the
companies are starting to become alert of the risk management process, but are still not
using models and techniques aimed for managing risks. This contradicts the fact that the
industry is trying to be more cost and time efficient as well as they have more control
over projects. Risk is associated to any project regardless the industry and consequently
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risk management should be of interest to any project manager. (Gajewska & Ropel,
2011).
A performing road project should meet the cost, quality, time and safety needs through an
Ideally, where there is a good risk management culture, it would necessarily impact
timely, registered in the risk register, assessed qualitatively and quantitatively, responded
adequately then monitored and controlled through the whole life cycle of the project. This
should result in the performance of public projects in terms of cost, time, quality and
safety.
However, there are still many practitioners that have not realized the importance of
including risk management in the process of delivering the project. Even though there is
an alertness of risks and their consequences, some organizations do not approach them
with established risk management methods (Gajewska & Ropel, 2011). In Rwanda‘s
public sector, large infrastructure projects suffer from significant under management of
risk in practically all stages of the value chain and throughout the life cycle of a project.
Crucially, project owners often fail to see that risks generated in one stage of the project
can have a significant knock-on impact throughout its later stages (Beckers & Stegemann,
2013). Nevertheless, the importance of risk management and how it could convert to
Rwanda risk management system has not been fully entrenched and this has affected the
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manager of MTN during the Conference on ―public sector risk management‖ organized
by the Rwandan minister of finance and economic planning in 2014, ―In order to come up
with better strategies, we need to identify or be in position to set limits for the risks and
therefore be in position to manage them correctly‖ (The New times, 2014).From that
period to now, risks (namely lack or poor feasibility studies, financing issues, time
overrun of the project, lack of capacity building for engineers in road construction in new
skills and tools) surrounding road project had not been fixed and this impact negatively
on outcome of the project in time. As the construction of roads and drainage system under
the Rwanda Urban Development Project (RUDP) was expected to be completed in nine
months from September 2017 in Rusizi area, the delay is so huge that residents start to
The objectives of the study were classified into two parts: General or global objective and
specific objectives.
The general objective of this study was to examine risk management on the performance
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3. To examine the effects of human resource risk management on performance of
road project in Rwanda.
4. To examine the effect of operational& technical risk management on
performance of road project in Rwanda.
1.4 Hypothesis
H1: Fund risk management has a statistical significance on performance of road project in
Rwanda.
In terms of time, it will be conducted within the period of five years from 2012-2017 as
the starting time to implement the national feeder road policy and strategy project in
Rwanda.
In terms of content, this study will examine risk management and the performance of road
projects through the national feeder road policy and strategy project within RTDA in
Rwanda.
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1.5.3 Geographical scope
In terms of geographical scope, this study will be carried out in Rwanda specifically
national feeder roads policy and strategy project under Rwanda Transport Development
Agency.
Risk management helps to pinpoint your plan‘s weaknesses and gives a useful insight into
In the context of a project, a risk is an event that may occur and if it does will threaten the
successful delivery of the project (Barker & Cole, 2012). This study is going to show the
effectiveness of using risk management in the road project life cycle. Furthermore, if risks
are identified in time, they should be considered with consciousness in order to attain the
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reflects the literature that forms the basis of this study. Theories related to
risk management and road project performance had been highlighted. In this chapter, the
conceptual review, the empirical review through old scholars and contemporary ones and
objectives. Risk is a complex phenomenon that has physical, monetary, cultural and
social dimensions. The consequences of risk events go well beyond the direct physical
harm to financial or physical assets, people or ecosystems to effect the way a society
operates and people think (Loosemore et al, 2006).Risk management is the process that
attempts to manage the uncertainty that influences the achievement of objectives, with the
goal of reaching the objectives and thus creating value for the organisation in which it is
applied (COSO, 2004). Risk management in projects is about proactively working with
project stakeholders to minimize the risks and maximise the opportunities associated with
project decisions. The aim is not to avoid risk but to make more informed decisions to
ensure that project objectives are achieved and, ideally, exceeded (Loosemore et al,
2006). Risk management on road project deals with the environment, fund allowed to
Furthermore in this study, performance of road project is measured through the meets of
time, budget, quality and safety (Takim & Akintoye, 2002). Performance is a term used in
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everyday life, in engineering, in economics, and many other areas. It can have a general
meaning or a specific meaning. For the latter, and particularly for roads, performance
should be a measurable entity. This is in fact essential for assessing the current and future
state of road infrastructure, as well as agency and institutional efficiency in service and
preservation of investment and other functions. Performance indicators of this study are
compliance measures (Haas et al, 2009). In this study, performance indicators of road
project are characterized by cost optimization, completion in time, efficiency and project
implementation.
Risk can occur on the cost of the project when the estimation has been biased. This is due
to poor market conditions, problem of funding availability, new technologies with low
skills, the roughness of the field conditions, ruthlessness competition, accessibility and
quantities. Factors of funds risks are: sponsor bankrupt, political changes, economic
crisis, market inflation, variation rate of exchange, taxation risk, raw material prices, time
Estimating risk required contingency fund. Cost overrun are a critical problem for
construction problem. The common practice for dealing with cost overrun is the
fund.
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When we start up to initiate and develop a project, we do not know with certainty what it
will cost. This uncertainty starts large and reduces as the solution to the business
requirements is developed, the design is crystallised, contractors are selected and the
project is built. Risk analysis helps us to track the uncertainty through these stages by
In the fund industry, a fund‘s adviser has long been managing a fund‘s risks as part of its
responsibilities for the management and operation of the fund, and the fund‘s directors
Practices do vary and continue to evolve (Investment Company Institute, 2011). The
green climate fund (2014) set types of risk that can impact on financial side. These are the
technical risk (risky technology), market risk (price movements), foreign exchange risk,
as may be approved by the board (exchange rate risk, currency availability), country risk
Both the private sector and government have critical roles to play in infrastructure
funding. Where infrastructure projects are financially viable (with acceptable risk returns)
and do not require a government concession to grant the necessary rights to undertake the
project, the private sector will invest with minimal government involvement. The
resources sector and its ability to self-fund mines, rail and ports is an obvious example.
However, most public infrastructure does not have adequate commercial opportunities to
be fully self-funding. It is then the responsibility of government, more often the States, to
invest in the infrastructure needed for them to fulfil their fundamental service delivery
obligations. From transport to health care, schools to stadia: the States‘ responsibilities in
this respect affect all aspects of our day to day lives. Unlike many other government
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sponsored projects, transport projects often provide scope to access independent revenues
from the imposition of user charges (road tolls, rail access charges, ticketing revenues,
port access fees, etc.). Such third party revenues can greatly assist with long term project
affordability and the ability to leverage private sector investment (Pwc, 2011).
The risks factors for natural disaster risks come from; earthquake, flood, fire, tornado,
war, revolution. Those for environmental risks come from environmental factors,
The sad news is that many roads being built today are environmentally bad. Virtually all
of the world‘s remaining wildernesses are under assault by road building—from the
Amazon to New Guinea, and from Siberia to Sub-Saharan Africa. Such roads are
minerals, timber, land, oil, and natural gas; to construct new dams, power lines, and gas
lines; to promote regional trade; and even to secure remote frontier areas (Laurance,
2014). Daigle (2010) sets some environmental effects of roads include spatial and
temporal dimensions and biotic and abiotic components. Effects can be local (along a
road segment) or extensive (related to a large road network). In addition to direct loss of
habitat and ecosystems caused by the footprint of resource roads, another spatial aspect is
the ―road-effect zone‖ that can radiate out from the sides of the road and/or extend
downstream where effects on aquatic conditions may be located a distance from the
source. The road-effect zone also changes light conditions and disturbs soils and thus
creates conditions suitable for invasive plants. Spatial effects of roads vary because
species habitat requirements and ecosystem characteristics are diverse. Roads may
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negatively affect species, habitats, and physical and chemical characteristics at the site
The indicators of environmental risk management are made by resources used and
written or grants issued. Environment protection and management rank among the main
Human resource can be either a threat or an opportunity, this depend on how the
organization deal with it. Transportation agencies will need to understand the application
of risk management at multiple levels. This will require agencies to develop the additional
skills needed to successfully extend risk management routinely used by agencies at the
project level to the program and enterprise level. The techniques and practices of risk
management: risk identification, assessment and analysis, mitigation and planning, and
monitoring and updating used in project level risk management are applicable to
managing the risks at the program level, corporate level, as well to other levels (Federal
Risks factors of human resources come from: staff training, staff availability, change in
communication plan (Sharaf, 2015). Human resources risks come from: Conflict not
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Human resources professionals must increasingly adopt a proactive risk-based and
approach. This will create an environment where they can develop their professional and
personal competency and demonstrate added value (Anaraki &Ganjali, 2014). Anaraki
pinpointed that Human Resources professionals can add value to the organization by
eliminating these risks, first by highlighting the areas of risk exposure and the potential
Ernst and Young (2009) characterized the area of human resource risks as one of the key
business risks of our time. The risk resource can be divided to external and internal. The
external risk sources, originating outside the organization (labor market, natural disasters,
labor legislation) and internal risk sources, concerning the people in the organization
&Ganjali, 2014). The indicators of human resource risk management are: average time to
Risks factors for both operation and technical risks come from condition, availability,
the operation of a project after commissioned. In other words, operational risks have
significant impact to the effectiveness and efficiency of the operational activities designed
to enhance the operating system of a project if occur. There are several potential factors
that may influence the occurrences of operational risks in construction projects like
highways. Amongst them include an ineffective use of related tools and techniques to
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identify and predict possible risks and their potential cost impact should they occur in the
actual construction project. Also poor risk management planning, low quality in design
and poor supervision during construction are among other potential factors that may
more of these factors takes place in the actual construction projects, there is a great
possibility of one or more operational risks to occur. Among the operational risks that
may occur in construction projects like highways include cost overrun in operation and
maintenance, non-availability of services due to asset failure and poor quality of service
delivery. Time and cost overrun during construction may also have a significant effect on
the operation of a construction project if occur in the actual construction project. For
example, time and cost overrun in construction would dictate a potential delay in project
Risks can also come from the design risk like: road alignment, design error, traffic flow,
improper feasibility study (Sharaf, 2015). Operational risks often occur due to breakdown
changes that affect normal business operation. This includes: burdensome processes that
are ignored or are not fully implemented; new or untrained staff; informal operational
administration, 2012).
B. Technical risks include anything that restricts you from creating the product that your
customer wants. This can include uncertainty of resources and availability of materials,
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inadequate site investigation, or incomplete design. These risks can commonly occur
when there are changes in project scope and requirements, and if there are design errors
Within this part of the literature review, related different types of theories, historical
perspective of road construction, its methods, and areas where it is applied are reviewed.
Project risks are always in the future. Risk is an uncertain event or condition that could
have an effect on at least one project objective or the others. Objectives can include
scope, schedule, cost and quality. A risk may have one or more causes and, if it occurs, it
may have one or more impacts. A cause may be a requirement, assumption, constraint, or
condition that creates the possibility of negative or positive outcome (PMI, 2008).
So what are the main motives to use risk management? Risk is most often related to the
negative outbreak of an uncontrolled uncertainty that can cause the loss of lives, money,
time or quality or function. Benefits of risk management are the clear focus on trying to
think about what might happen and then manage the project to avoid the negative
scenarios, the risks, and making sure that the positive aspects, the opportunities, are
actually realized (Simu, 2009). Risk management is a process, not a project. Risk
ongoing part of business operations. Risk management fills a need not met by individual
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Even the best managed projects rarely run exactly to plan. Inevitably events will occur
that have the potential to derail your project unless they are dealt with effectively. Risk
management is key tool in anticipating and dealing with these events (Barker & Cole,
2012).
The problem is that risk management was considered as the main tool in finance or
performing project. The three essential requirement in project management are, thinking
ahead, communicating and evaluation. Anaraki &Ganjali (2014) said that risk is no longer
just a threat; when managed effectively it is a powerful asset that delivers competitive
Decision theory is the part of probability theory that is concerned with calculating the
choice and to optimize decisions. In the cycle of risk management, the step that creates
value for an organisation is chiefly selecting the appropriate risk responses to counter
risk. For financial risks this choice is often a case of optimization, as the goal is to find a
balance between the cost of the reaction to be applied and the residual risk after
application. It is important to note that the decision maker‘s attitude towards the
impending risk has influence on the process of choosing the suitable reaction to deal with
the risk. This leads to a person more lenient towards taking risk to sooner find a risk
tolerable than a person more hesitant towards taking risk. Likewise, depending on the
decision maker, a risk might be completely terminated, whereas someone else would find
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reduction preferable. To describe risk preferences, decision theory can be applied for a
development challenges are complex, and are typically caused by many factors and layers
that are embedded deeply in the way society functions. Second, a theory of change
provides a framework for learning both within and between programming cycles. By
the proposed strategy is expected to yield results, and testing these assumptions against
evidence including what has worked well, or not, in the past, the theory of change helps
ensure a sound logic for achieving change. Third, the theory of change is increasingly
being utilized as a means for developing and managing partnerships and partnership
strategies. The process of agreeing on a theory of change establishes different views and
can foster consensus and motivate stakeholders by involving them early in the planning
process and by showing them how their work contributes to long-term impact (UNDG,
2017).
This study choose to use the theory of change which impact on Rwanda country as
expected by the government that fully recognizes the importance of the Labour Intensive
Public Works Sector in contributing towards attainment of the goals of the Government‘s
income country with a dynamic, diversified, integrated and competitive economy. Here
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Table 2.1: Risk management principles
Risk Management should create and Risk Management should be an Risk Management should
protect value integrate part of all processes be part of your decision
making
Risk Management should be used to Risk Management should be Risk Management should
deal with uncertainty structured systematic and timely be based on the best
information
Risk Management should be tailored Risk Management should deal with Risk Management should
to your environment human and cultural factors be transparent, inclusive,
and relevant
Source: Anaraki & Ganjali (2014). Human resource risk management, In Applied mathematics in
engineering, management and technology, 2 (6), 129
The first roads appeared on the landscape. Just as molecules merged into cells and cells
into more complex organisms, our first roads were spontaneously formed by humans
walking the same paths over and over to get water and find food. As small groups of
people combined into villages, towns and cities, networks of walking paths became more
formal roads. Following the introduction of the wheel about 7,000 years ago, the larger,
heavier loads that could be transported showed the limitations of dirt paths that turned
into muddy bogs when it rained. The earliest stone paved roads have been traced to about
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To avoid muddy bogs; the first road risk; and to help support the movement of legions
throughout their empire, the Romans developed techniques to build durable roads using
multiple layers of materials atop of deep beds of crushed stone for water drainage. Some
of those roads remain in use more than 2,000 years later, and the fundamental techniques
form the basis of today's roads. Modern road-construction techniques can be traced to a
process developed by Scottish engineer John McAdam in the early 19th century.
McAdam topped multi-layer roadbeds with a soil and crushed stone aggregate that was
then packed down with heavy rollers to lock it all together. Contemporary asphalt roads
capable of supporting the vehicles that emerged in the 20th century built upon McAdams'
methods by adding tar as a binder (Abrams, 2013). Under Roman law, the public had the
right to use the roads, but the district through which a road passed was responsible for the
maintenance of the roadway. This system was effective so long as a strong central
authority existed to enforce it. Unfortunately, as the Roman Empire declined so did their
roads, and their work fell into disrepair all across Europe and Great Britain (Sponholtz,
2018).
Nowadays, roads are built both with noise barrier and draining rain water to the water
table. The theory is based upon blockage of sound ray travel toward a particular receptor;
Risk management process consists of a four-phased process. The four phases are risk
identification, risk assessment, risk response, monitoring and reviewing risks. Berg and
Tideholm (2012) described risk identification, risk assessment, risk response and
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2.2.2.1. Risk Identification phase.
The first step in the RMP is the risk identification; in this step the goal is to determine
which risk that may have an effect on the project and to document their characteristics
(PMI, 2008). The identification is of a qualitative approach and studies have shown that
the more effort that is put in the identification process in the initial stages of the project
the more positive impact it will have on the project in the later phases. The identification
process will form the base where risks, uncertainties, constraints, policies and strategies
for the control and allocation of risk are established (Potts, 2008).
Identifying the risks is important to develop a risk register (PMI, 2008). The risk register
should contain the outputs from the risk identification, starting with the risk with the
highest impact on the project. The risk register should give each of the risks a number and
document the possible impact the risk can or will have on the project, this can be done in
The second phase of the RMP is the risk assessment. The overall objective with the risk
assessment is to conduct analysis and evaluation of the risks that have been identified in
In the assessment phase the project will be able to sort out and prioritize the risk
according to their probability or impact on the project. This is often done to get a good
view of which risks that are most important to address in an early stage.
For the UK government office of science (2011), the purpose of any risk assessment is to
identify how likely events of concern are to occur and to assess potential losses and
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impacts. This provides an objective foundation for deciding appropriate prevention or
mitigation strategies. There are three main ways of undertaking a risk assessment:
a. The heuristic method refers to a subjective score for a given risk where relevant
when there is little measurable information but opinions are still available.
requires an evaluation of the likelihood of the impact or losses made from a single
specific scenario, quite often chosen to represent some form of defined extreme or
possible events. Decisions can then be taken whether to act based on a set level of
risk tolerance.
The main purpose of risk response is to develop options and actions to maximize
opportunities and minimize threats to the project objectives. Furthermore, during the
planning of the risk response the chosen action must be appropriate to the risk as well as
in terms of cost effectiveness and practicality to the project context. The risk response
that has been chosen must have an agreement between all involved parties and owned by
the responsible owner (PMI, 2008). There are four common strategies of responding to
risks. Potts (2008) defines these four different risk strategies as: avoidance/prevention,
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2.2.2.4. Monitoring and Control
The last and final step of the RMP is monitoring and control of the risks. For this stage,
all the information about the identified, assessed and analyzed risks are collected and
monitored (Winch, 2010). According to PMI (2008), in the stage of monitoring and
control it is appropriate to develop a risk response plan, keep track of identified risks,
identify possible new risks, and keep track of potential remaining risks. Furthermore, in
this step of the project there is a chance of evaluating the efficiency, both positive and
negative, of the RMP throughout the entire project life cycle and keep a supervising eye
Monitoring and control of risks and opportunities should be done on a regular basis.
The study by Musirikare and Kule (2016), with the general objective to examine the
construction projects in Kigali, Rwanda, during the period starting from 2009 until
2012.The study used a descriptive survey design. This involved collecting data from
construction project contractors, consultants or officers during the period starting from
In the study, it was observed that among 38 construction projects in Gasabo District, 25
were delayed by a total of 292 weeks. Two projects had cost overruns of 4,257,023$,
which consists of 5.2% of the overall cost of project implemented during the period
starting from 2009-2012. Analysis of causes behind resulted into the fact that all studied
Process (RPTP) that generally consider a potential contractor as the one with the lowest
cost among bidders when acceptable administrative qualities are met. Article 43 of law no
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16 of the 22/04/2013 modifying article 74 of law no 12/2007 of the 27/03/2007 on public
procurement in the Republic of Rwanda orders to start of a new tender once the case
appear at 20%. Hence, the mitigation technique prevents contractors from going back into
The study identified some important information on a number of causes of delays and
cost overruns. The study revealed that over 25 (65.7%) of implemented projects delayed.
Among these delays, 11 were cause by delayed payments, 9 were due financial
deficiencies on the part of the client or contractor, 4were caused by material procurement,
whereas the remaining 1 was caused by poor supervision. Cost overruns on the other side
The objective of the study by Karani (2018), was about to assess the impacts of
roads—a huge physical development component on the environment in South Africa. The
impact of road construction includes displacing animals and plants that may not be
recovered and the long-term consequences limit productivity of roadsides due to exposure
of sub-soils, reduction in water holding capacity by the soils, and compacting soil
construction makes the slopes on the roadsides vulnerable to landslides and erosions.
Although, some species thrive on the roadsides, most of them are weedy species and in
most cases not viable. The impact of roads on ecological resources requires mitigation
measures that will eliminate both direct and indirect effects. Direct effects including
minimized through better road design techniques based on integrated approaches. The
roadsides can be replanted, new roads located and existing roads relocated outside the
wildlife habitats. Indirect effects associated with pollution because of the demand for
24
travel and mobility by people can be minimized through the use of alternative modes of
travel for example increased public transportation, use of alternative routes outside the
wildlife habitat, control travel to destinations subject to peak and off peak seasons of
wildlife migration.
According to Ghazali (2009), operational risks for highway projects come from initial
toll-tariff decided by the Government, traffic congestion, change of road network and
overloaded freight transportation. The main purpose of his research was to identify
potential operational risks that had a possibility to occur in highway projects in Malaysia
The methodology involved in this research project was in two stages: First, the key
operational risks for highway projects in Malaysia and some selected developing Asian
countries were identified through literature review. Second, extensive interviews were
conducted with a number of key personnel from the Malaysia Highway Authority in order
Findings showed that time and cost overrun in the operation and maintenance were
among key operational risks that had the possibility to occur in a construction project
during the operational stage. The costs for operating and maintaining a construction
project are usually considered as overrun when the allocated expenses are found
insufficient to carry out the scheduled activities or works, after arising from unexpected
escalation in the costs of equipment, labour, utilities and other supplies. It identified other
possible factors that can be associated with the occurrences of cost overrun in particular,
during the operation and maintenance of a construction project. These include the
operator‘s failure to meet the desired performance standard or produce the required
capacity, output and efficiency from the procured assets and/or facilities as specified.
25
According to Stefánsdóttir (2017), there is a reason some organizations are referred to as
knowledge workers and they maintain their competitive advantage by retaining these
employees. It is therefore vital for them to realize that the knowledge within is their greatest
strength and it can be a great risk factor should the knowledge disappear.
All aspects of modern society are continuously changing and transforming making it
difficult for decision makers in organizations to imagine what the future may hold.
Managing risk is thus vital for organizations to lessen the loss caused by uncertainty. Risk
is not a new trend but the fact that it can and should be managed, in all aspects of an
organizations, however, are systematically using the risk management to gain competitive
advantage. The modern risk management view is to manage all risks and uncertainties
organizations might face. The aim was to answer what medium-sized and larger knowledge-
based organizations in Iceland are doing to address and manage risks in human resources.
Findings showed that majority of the HR managers in medium-sized and larger knowledge-
based organizations interviewed were aware that human resources could result in a risk
despite not using the term HR risks to systematically define the relevant risk factors.
It is obvious that research in the area of risk management of road project performance on
the national feeder road policy and strategy project within RTDA has not yet been done
consistency in line with the planned time, budget and scope. Risk management is used to
26
be a part of finance and corporate governance, HR, operational and technical management
and environmental management but, it‘s obvious that it is needed to be fully entrenched
stakeholders.
The general objective of this study is to examine the risk management on the performance
27
Figure 2.1: Conceptual framework.
Liquidity risk
Currency devaluation
Cost estimation risk
Contingency plan
HR risk management
Capacity building
Performance appraisal
Knowledge based Time
management
Budget
Quality
Environmental risk management
Safety
Wild life protection
Expropriation problems
Policies & resources for
environment protection
28
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
Here, the researcher presents how the research will be conducted. The chapter reflects the
whole process of research in terms of all methods and techniques to achieve the
objectives of the study. She includes the research design, study population, data collection
The research design used in this study is a cross-sectional and a correlational design. The
researcher has used both qualitative and quantitative approaches within RTDA and its
from answers within the questionnaire (SPSS& MS Excel) while qualitative approach
were used the analysis of documented materials (secondary materials). Both approaches
are adopted to assess opinions of respondents and about the impact of risk management
In this study, the researcher choose to collect data on a sample made by 32 respondents.
The simple reason was that engineers in road construction are not many as in civil
engineering.
The study was conducted in Rwanda Transport Development Agency where a stratified
32 respondents were chosen to respond to the questionnaire. Three actors are involved in
a project, namely; the owner (RTDA) who oversees and pays, the consultant (Tecos,
29
CCC, Hycogec, etc.) who advises and the contractor (NPD, Horizon, and CRBC etc.)
who does the job. Therefore, as the target is below a hundred, there is no need to use a
sample size.
Contractors 4
Project managers 13
Consultants 5
Engineers 10
Total 32
Reliability was used to test the consistency of the research instrument through Cronbach
Alpha test.
About the validity of the instrument, the researcher has conducted a field test of the
questionnaire items to a panel of experts such as the supervisor and classmates. The
relevance and the understanding of the content of the questionnaire were validated by
them.
30
3.4. Data collection instruments
Primary data collection was collected through the helping of the following instruments of
A Statistical Package of Social Sciences software (SPSS 16.0) helped the researcher to
collect primary data, to present and analyze them through descriptive statistics such as
mean, frequency, Pearson correlation and regression analysis. MS Excel was used for a
quick analysis of statistics. The regression analysis techniques formula used was
ɑ as Constant
3.6. Limitations
On field, the researcher was confronted with limited access to literature and inadequate
funding. Furthermore, the data was hard to find as the respondents were busy with their
The researcher kept uprightness and veracity in the data collection and analysis in order to
produce an effective document that can help the use of risk management in project of the
31
Participants in a study were protected from adverse situations. They were assured that
information that they provided to the researcher will not be used against them.
Participants had been approached and the purpose of the study was explained. No
remuneration was offered and they were informed of the opportunity to withdraw at any
32
CHAPITER FOUR
4.0 Introduction
This chapter is about to analyze and interpret data collected on the topic entitled risk
management and road project performance in Rwanda, a study of National feeder road
policy and strategy project within RTDA. A questionnaire were used as the main tool to
collect primary data from respondents working in road construction in Rwanda. The
research talked in general about risk management skill area from project management
institute and road project performance. Topic on road construction had the objective to
examine the relationship between the practices of risk management for a road project
performance. Both quantitative and qualitative analysis was vital and essential for the
research to secure scientific conclusions and targeted recommendations, this part deal
with them.
The researcher choose to collect data on a sample made by 32 respondents. The simple
reason was that engineers in road construction are not many as in civil engineering.
Answers were analysed in SPSS and MS Excel, scientific tools for data analysis.
33
Table 4.1 Respondents characteristics
25-35 15 46.9
36-45 15 46.9
46-55 1 3.1
56-Above 1 3.1
Total 32 100%
Gender
Male 28 87.5
Female 4 12.5
Total 32 100%
Education
Bachelor 17 53.1
Masters 14 43.8
Others 1 3.1
Total 32 100%
Experience
0-5 8 25
6-10 11 34.4
11-above 13 40.6
Total 32 100%
Qualification
Project
13 40.6
Manager
Consultant 5 15.6
Contractor 4 12.5
Engineer 10 31.2
Total 32 100%
Source: Field data, 2019
34
4.1.1 Age of respondents
Within the table 4.1, the age‘s range showed that RTDA workforce and their
energetic and their contribution in road construction is important for the performance of
the project. The other reason is that the pyramid of age in Rwanda is triangular with a
high number of youth than adult. This were represented by 46.9% for each age category
of 25-35 years and 36-45 years. 3.1% had age among 46-55 and the remaining 3.1% were
In terms of gender, the majority of the total respondents 87.5% were male and only 12.5
% were female. This showed that all gender were represented. The researcher concluded
that because of the heaviness and the long time spend on fields, the average of female
In terms of education, the total sample had completed tertiary studies where 53.1% hold a
bachelor degree and 43.8% hold a master degree. This showed the ability of respondents
to provide relevant data and human capital to bring performance on the fields with the
project in Rwanda.
Going on experience range, the highest level corresponded to 40.6% for respondents with
11 and above years of experience, 34.4% with 6-10 years of experience and 25% had just
less than 5years of experience. This attested that all the respondents had knowledge and
35
bring a positive impact on planning and implementation to minimize risks associated to
The qualification of respondents 40.6% are project managers, 31.2% are engineers, 15.6%
were consultants and 12.5% were contractors both national and international.
This respondent‘s background gave the researcher confidence about the validity of the
data collected.
The following table treated statements within the questionnaire related to fund risk.
Respondents were asked to agree or not on different level about risks stated (1 as Strongly
36
Table 4.2: Fund risk management.
________________________________________________________________________
_____________________________________________________________________________
In the above table, about contingency plan (62.5% agree, 25% strongly agree with a
strong mean of 4.06), for liquidity risk (37.5% were not sure, 31.2% agree and 15.6%
strongly agree with a mean of 3.41), that risk come from currency devaluation (53.1%
agree, 12,5% were not sure, 12.5% disagree and 12.5% strongly disagree with a mean of
3.34), cost estimation risk ( 37.5% disagree, 31.2% agree and 15.6% were not sure with a
mean of 2.75) and delays in financing projects and transactions (46% were strongly
disagree, 28.1% disagree and 15.6% were not sure with a low mean of 1.88). With an
average of 62, 5% who agreed to use contingency plan, and 37.5% who disagreed with
risk on cost estimation, this is contradicted by AU report of 2003 that asserted ―the
provision for physical contingencies is 10% of the base cost. The provision for financial
contingencies is 3%, corresponding to 3% inflation per year for foreign exchange costs as
well as for local currency costs‖(African Development Fund, 2003). Furthermore, this
prove that when any problem occur can be handled efficiently but more effort shall be
37
4.2.2 Environmental risk management
The following table treated statements within the questionnaire related to environmental
risks. Respondents were asked to agree or not on different level about risks stated (1 as
______________________________________________________________________
Lack of wild life protection 32 3.69 18.8 56.2 3.1 18.8 3.1
___________________________________________________________________________________
In the above table, lack of wildlife protection have (56.2% agree, 18.8% strongly agree
and 18.8% disagree with a high mean of 3.69), then about delays because of expropriation
problems such as lack of land study (34.4% disagree, 21.9% strongly agree and 28.1%
agree with a high mean of 3.38). About risks are eliminated by changing the design of the
project (50% agree, 21.9% were not sure and 12.5% disagree with a high mean of
agree, 28.1% were not sure and 21.9% disagree with a mean of 3.09).
38
Government of Rwanda is involved in environment protection as ministry of
Environment of Rwanda stipulated (2019) that‖ In the medium term, the National
the priority for a green economy approach in its Economic Transformation pillar that
Rwanda towards a Green Economy‖. Moreover, environment and climate change were
The following table treated statements within the questionnaire related to operational and
technical risks. Respondents were asked to agree or not on different level about risks
agree).
39
Table 4.4: Operational and technical risk management
_____________________________________________________________________________
Statement N Mean SA% A% N% D% SD%
Systems are putting in place to deal with
the risk register. 32 4.31 46.9 43.8 3.1 6.2 -
Lack of feasibility study. 32 4.03 34.4 46.9 9.4 6.2 3.1
Lack of capacity building in RM. 32 3.28 15.6 34.4 19 25 6.2
Lack of communication during the project life32 2.78 3.1 25 28.1 34.4 9.4
Risks are transferred within insurance 32 3.41 12.5 43.8 18.8 21.9 3.1
Delays because of expropriation problems
such as lack of land study. 32 4.22 50 31.2 9.4 9.4 -
SWOT analysis helps to set weaknesses
and threats of road project 32 3.16 12.5 34.4 22 18.8 12.5
Machinery unmaintained 32 3.44 15.6 31.5 25 18.8 3.1
Average 32 3.5788 23.825 36.38 17 17.6 6.233
______________________________________________________________________________
In Table 4.2., findings showed that majority of respondents were strongly and agree with
systems are putting in place to deal with the risk register (46.9% and 43.8% respectively
with a high mean of 4.31), delays because of expropriation problems (50% and 31.2%
respectively with a high mean of 4.22). Lack of feasibility study (34.4 % and 46.9%
strongly agree and agree respectively with a high mean of 4.03). Machinery unmaintained
knew a mean of 3.44 with 31.5% agree and 25% not sure, then risks are transferred within
insurance43.8% agreed, 21.9% disagree and 18.8% were not sure with a moderate mean
of 3.41. About lack of capacity building in RM34.4% agree and 25% disagree with a
moderate mean of 3.28, and about the lack of communication during the project life cycle
25% agreed, 28.1% were not sure and 34.4% disagreed with a moderate mean of 2.78.
Here the results proved that there is huge lack of capacity building (mean 3.28), of
feasibility study (mean of 4.03) and so huge was delays due to expropriation problems
(mean of 4.22). From the study made by Uwajeneza and Mulyungi (2018) on ―Effect of
40
operation risk management process on project success in Rwanda; a case study of Congo
it was found that there is positive correlation between operation risk identification and
further demonstrated that there were a strong relationship between the operation risk
Project. It was found out that the project could not perform without effective risk
Management Project. The study further demonstrated that there is a strong relationship
between the risk assessment and success of Ridge Foothills Integrated Environmental
Management Project. The study found operation risk treatment to have a great effect on
The following table treated statements within the questionnaire related to human resource
risks. Respondents were asked to agree or not on different level about risks stated (1 as
41
Table 4.5: Human resource risk management.
_______________________________________________________________________
Statement N Mean SA% A% N% D% SD%
_____________________________________________________________________________
In above table, capacity building in risk management process (50% agree to use it, 28.1%
were strongly agree with a strong mean of 3.94), with to improve work environment (50%
were agree, 28.1% not sure and 15.6% strongly agree with a strong mean of 3.72).
Performance appraisal of the personnel (50% agree, 25% were not sure and 15, 6%
disagree with a high mean of 3.16), about Average time to achieve goals is within the
project duration (40.6% agree, 25% not sure and 18.8% disagree with a high mean of
3.16), for Knowledge based management (46.9% were not sure and 21.9 were agree and
disagree with a moderate mean of 2.94).
One of the big lessons from the study made by Joffe (CEO of Bidvest Group) is that you
grow by growing people and working together. You rarely find bad people in business.
The problem is usually a bad fit. Give people the right opportunity, the right tools and
training, and they will perform (Meyer, Roodt & Robbins, 2011). Increasing capacity
building and knowledge based management, improve work environment based on the
performance appraisal of the personnel should obviously have a positive impact on
efficiency of human resources.
42
4.2.5 Performance on road project
The following table treated statements within the questionnaire related to performance
variables. Respondents were asked to agree or not on different level about risks stated (1
The statement about that effective risk management lead to meet the budget (71.9%
strongly agree, 21.9% agree and 3.1% similarly disagree and strongly disagree with a
high mean of 4.56), it leads to completion in time (68.8% strongly agree and 31.2% agree
with a high mean of 4.69), it leads to quality ( 62.5% strongly agree and 37.5% agree with
a high mean of 4.62), it leads to safety ( 59.4% strongly agree, 34.4% agree and 6.2%
were not sure with a high mean of 4.53). The totality of respondent agree that effective
risk management always lead to completion in time, quality, safety and meet the budget
of any project. Even mean of the above table are vigorous, precedent study made by Gitau
(2015), results from his research on ―The effects of risk management at project planning
43
engineers and architects were often selected before the design phase of a project. This
meant that many projects did not benefit from professional input at planning stage in
Rwanda. The most used method of selection used for consultants was the quality and cost
based selection method. 45.2% of the projects surveyed had poor time performance while
35.7 % of the projects had poor cost performance. The project site selection and needs
identification happened during planning stage in majority of the projects surveyed and
often without the involvement of construction professionals. The site works contribution
variations was found to be over 10% of the estimated cost in 45% of the projects
surveyed.
This part dealt with interpretation of findings about research on risk management on road
44
Table 4.7: Correlation between variables
Correlations
FRM ERM OTRM HRM PRP
FRM Pearson Correlation 1 .295 .350* .430* .745**
Sig. (2-tailed) .101 .050 .014 .000
N 32 32 32 32 32
ERM Pearson Correlation .295 1 .452** .698** .564**
Sig. (2-tailed) .101 .009 .000 .001
N 32 32 32 32 32
OTRM Pearson Correlation .350* .452** 1 .517** .282
Sig. (2-tailed) .050 .009 .002 .119
N 32 32 32 32 32
HRM Pearson Correlation .430* .698** .517** 1 .545**
Sig. (2-tailed) .014 .000 .002 .001
N 32 32 32 32 32
PRP Pearson Correlation .745** .564** .282 .545** 1
Sig. (2-tailed) .000 .001 .119 .001
N 32 32 32 32 32
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
there were a strong positive correlation with fund risk (0.745), a moderate positive
correlation with environmental risk (0.564), a weak positive correlation with operation &
technical risk (0.282) and a moderate positive correlation with human resources risk
(0.545). As P-value is significant at 5%, the results showed up that P-value between Fund
technical RM has not effect on performance of road project with a P-value higher than
0.005 (0.119).
45
4.4 Findings of regression analysis
Regression analysis is a statistical tool for prediction, model summary try to predict the
predict level of variability and coefficients to represent the mean change in the response
Model Summaryb
From the results of analysis, findings showed up that the relationship (R) of all variables
are .838 have a strong relationship which according to the findings the four variables can
Also findings indicated that R² can be accounted at value of .703. In other words all the
variables are reported at a value of 0.703, this basically shows that the four variables can
46
Table 4.9: Analysis of variance
ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 8.695 4 2.174 15.950 .000a
Residual 3.680 27 .136
Total 12.375 31
a. Predictors: (Constant), HRM, FRM, OTRM, ERM
b. Dependent Variable: PRP
The results of the findings showed a significance of 0.000 as P-value this implies that
project performance factors. By the help of F-test, value of F (4, 27) is 0.136 which is less
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .055 .506 .108 .914
FRM .900 .162 .654 5.546 .000
ERM .330 .125 .392 2.643 .014
OTRM -.151 .117 -.163 -1.296 .206
HRM .066 .143 .074 .464 .646
a. Dependent Variable: PRP
Y= 0.55+0.9X1+0.33X2-0.151X3+0.066X4+0.05
=0.6+0.9X1+0.33X2-0.151X3+0.066X4
47
4.5 Objectives Test
From its objective of assessing the effect of fund risk management on performance of
road project in Rwanda, results indicated that if a unit increase on FRM it causes an
increase of 0.9 (90%) on PRP and its effect is seen to be .654 which indicates a strong
effect on PRP. And the objective has a positive significant of 0.000 which is less than
0.05.
performance of road project in Rwanda; results indicated that if a unit increase on ERM
it causes an increase of 0.33 (33%) on PRP and its effect is seen to be .392 which
indicates a strong effect on PRP. And the objective has a positive significant of P-value
From its objective; to examine the effect of operational& technical risk management on
performance of road project in Rwanda; results showed that as a unit increases it causes a
decrease of -0.151 (-15.1%) on the PRP, result indicate a negative effect of -0.163, it's
seen that OTRM is not significant to PRP its P-value is .206 which greater than 0.05.
From its objective; to examine the effects of human resource risk management on
performance of road project in Rwanda; results indicated that if a unit increase it causes
an increase of 0.66 (66%) on PRP and its effect is seen to be 7.4% which indicates a
48
slight effect on PRP. The objective has a positive significant of P-value 0.646 which is
4.6.1 Hypothesis of Fund RM, the result indicated that Fund RM; t-value is 5.546 which
is above 1.96 hence fund RM showed that it is significant P-value .000 is less than 0.05
hence the null hypothesis is rejected and the alternate hypothesis is accepted.
4.6.2 Hypothesis of Environmental RM, the result indicated that t-value is 2.643 which
is above 1.96 hence environmental RM showed that it is significant. P-value .014 is less
than 0.05 hence the null hypothesis is rejected and the alternate hypothesis is accepted.
4.6.3 Hypothesis of Operation and technical RM, the result indicated that t-value is
-1.296 which is less than 1.96 hence operation and technical RM is not significant,
therefore, P-value .206 is higher than 0.05 hence the null hypothesis is accepted and the
alternate hypothesis is rejected.
4.6.4 Hypothesis of Human resource RM, the result indicated t-value is .464 which is
less than 1.96 hence human resource RM is not significant. P-value .646 hence the null
hypothesis is accepted and the study rejected the alternate hypothesis.
49
CHAPTER FIVE
5.0 Introduction
Within this chapter, the researcher summarized the findings, concluded and made
recommendations. The summary dealt with each of the specific objectives of the study
about risk management and road project performance for the National feeder road policy
The first specific objective was to assess the influence of fund risk management on
performance of road project in Rwanda. Data collected from RTDA and its collaborators
indicated a very strong value (0.745) see Table 4.7 with an average mean of 3.088 see
Table 4.2. The regression analysis showed that fund risk management brings a significant
contribution on performance of road project see Table 4.8 results showed up that with an
increase of one value of FRM, we see an increase of .09 in PRP, then PRP increase by
65.4% so FRM brings a significant contribution with P-value of .000 on PRP, meaning
that there is a positive impact or significance of .000 of FRM on PRP. t-value is 5.546
which is above 1.96 hence fund RM showed that it is significant P-value .000 is less than
0.05 hence the hypothesis is rejected and the alternate hypothesis is accepted. However,
most public infrastructure does not have adequate commercial opportunities to be fully
self-funding. It is then the responsibility of government, more often the States, to invest in
the infrastructure needed for them to fulfil their fundamental service delivery obligations.
From transport to health care, schools to stadia: the States‘ responsibilities in this respect
affect all aspects of our day to day lives. Unlike many other government sponsored
50
projects, transport projects often provide scope to access independent revenues from the
imposition of user charges (road tolls, rail access charges, ticketing revenues, port access
fees, etc.). Such third party revenues can greatly assist with long term project affordability
and the ability to leverage private sector investment (Pwc, 2011). The results of this study
indicated that fund risk management has a statistical significance on performance of road
project in Rwanda and fund for maintenance are well collected by Road Maintenance
Fund (RMF).
road project in Rwanda. Findings showed that environmental risks had a moderate value
(0.546) see Table 4.7 with an average mean of 3.367 see Table 4.3. The regression
analysis proved that environmental risk management has a statistical significance see
Table 4.8 results showed up that with an increase of one value of ERM, we see an
increase of .33 in PRP, then PRP increase by 39.2% so there is a positive impact with a P-
value of .014. T-value is 2.643 which is above 1.96 hence environmental RM showed that
it is significant. P-value .014 is less than 0.05 hence the hypothesis is rejected and the
made by resources used and activities taken by governmental agencies and environmental
groups, such as permits written or grants issued. Environment protection and management
rank among the main pillars of vision 2020 (Ministry of Finance and Economic Planning,
2000). The results indicated that environmental risk management has a statistical
51
The third specific objective was to examine the relationship between operational &
technical risk on performance of road project in Rwanda. The findings showed that the
correlation is positive but is very weak (with a value of 0.282) see Table 4.7 with an
average mean of 3.5788 (see Table 4.4). The regression analysis proved that operational
& technical risk management has a negative impact on performance of road project see
Table 4.8 results showed up that with an increase of one value of OTRM, we see a
decrease of .151 in PRP, then PRP decrease by 16.3% so OTRM is near marginal
significance with a P value of .206, it has a negative impact on PRP. T-value is -1.296
which is less than 1.96 hence operation and technical RM is not significant, therefore, P-
value .206 is higher than 0.05 hence the hypothesis is accepted and the alternate
hypothesis is rejected. Amongst them include an ineffective use of related tools and
techniques to identify and predict possible risks and their potential cost impact should
they occur in the actual construction project. Also poor risk management planning, low
quality in design and poor supervision during construction are among other potential
factors that may dictate the occurrences of operational risks in construction projects.
Usually if one or more of these factors takes place in the actual construction projects,
there is a great possibility of one or more operational risks to occur (Ghazali, 2009). From
the study on operational and technical risk management results proved that they don‘t
attention should be made on transfer and knowledge of tools and technics of RM.
The fourth specific objective was to examine the human resource risk on safety on road
construction. The findings showed that the correlation is positive but is moderate (with a
value of 0.545 see Table 4.7) with an average mean of 3.384 see Table 4.5. The
regression analysis proved that human resource risk management is slightly significant
see Table 4.8 results showed up that with an increase of one value of HRM, we see a
52
slight increase of .066 in PRP, then PRP increase slightly by 7.4% so HRM approached
the borderline of significance. T-value is .464 which is less than 1.96 hence human
resource RM is not significant. P-value .646 hence the hypothesis is accepted and the
study rejected the alternate hypothesis. The techniques and practices of risk management:
risk identification, assessment and analysis, mitigation and planning, and monitoring and
updating used in project level risk management are applicable to managing the risks at the
program level, corporate level, as well to other levels (Federal highway administration,
2012). Human resources professionals must increasingly adopt a proactive risk-based and
approach. This will create an environment where they can develop their professional and
personal competency and demonstrate added value. Human Resources professionals can
add value to the organization by eliminating these risks, first by highlighting the areas of
risk exposure and the potential impact of not taking action (Anaraki &Ganjali, 2014).
From the study, results on human resource risk management doesn‘t have a statistical
5.2 Conclusion
This study had the general objective to examine the relationship between risk
management and road project performance in Rwanda with a study on National feeder
road on policy and strategy project within RTDA. Risk management appeared to be
more training in risk management because they hold a great number of threats from the
planning phase to its completion. Moreover, there is a huge need of risk management for
road project performance these days because the loss can be high and bring problems in
society. The Oracle primavera paper (2014) indicated that ―as much as public
53
infrastructure projects create positive impact on societies, influence cultures, and affect
lives, when they fail the negative impact is far-reaching. It is estimated that for every
US$1 billion spent on a failed project, US$135 million is lost forever… unrecoverable‖.
The findings through regression analysis showed that there is a positive relationship
between PRP and Fund RM, Environmental RM, HR RM except for Operation and
5.3 Recommendations
human resource and operational and technical RM to find out the reasons of less results
It also recommends to introduce deep training for all their collaborators both national and
To the RTDA, in general, road projects follow 4 well-defined phases, starting with
planning and feasibility studies, then preliminary design, detailed design, contract
preparation and tendering, and construction, and finally, operation and maintenance
(REMA, 2009), the research recommends to add a section of risk management in all
planning phases of road projects and to undertake feasibility studies and set a risk register
54
It also recommends to improve staff and collaborators‘ capacity building in risk
management.
As this study focused on risk management in general on road project, additional research
could study effect of each variable such on fund, environmental, human resource and
operational and technical RM to demonstrate the value of each indicator on the road
project performance.
55
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APPENDIX 1: QUESTIONNAIRE
The objective of this questionnaire is to collect responses which are going to facilitate the
researcher for the project research requirement for the award in. You are invited to tick your
correct answer as provided. It consists of two sections. Section I contains the presentation of your
profile then the second will talk about risk management and road construction. Your time and
attention are appreciated.
63
E. What is your qualification:
Project Manager
Consultant
Contractor
Engineer
Section II: Risk management in Road construction project
Below indicators are SA: Strongly agree, A: Agree, N: Not sure, D: Disagree, SD: Strongly
disagree.
Statement SA A N D SD
Liquidity risk.
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2) Environmental risk management
Statement SA A N D SD
Statement SA A N D SD
Machinery unmaintained
65
4) Human resource risk management
Statement SA A N D SD
Statement SA A N D SD
66
Appendix 2: INTERVIEW GUIDE
67