Beneficiary Involvement in Sustainability of Donor-funded Project: Extent and Effectiveness

Abstract

This study sought to examine the influence of beneficiary involvement on sustainability of donor funded projects using OLMULO water project in Arusha region as a case study. The motivation behind this study comes from various findings and observations that show that sustainability of rural water supplies is a major challenge in Tanzania that has accelerated a challenge in regards to access safe water in the country. The study deployed a correlation and regression analysis in a dataset of 309 respondents referred herein as beneficiaries of OLMULO donor-funded project. Pearson correlation coefficient test together with Chi-square and T-tests were used to assess the strength of the relationship between independent variables and variable. The Pearson R-value of 0.605 with a p-value of 0.000 was found representing a positive and very statistically significant correlation of 60% between beneficiary involvement and sustainability of donor-funded projects. The t-test reported bigger t-value, ranging from t=50 to t=218, the more likely is that the results or response from most respondents are similar (repeatable) as equally supported by low values of standard deviations as well as standard error mean(s). Using collinearity diagnostic tests (tolerance statistics and VIF values) in the regression output, a multicollinearity concerns was detected. In solving the multicollinearity problem, all highly correlated variables were excluded from the model. The model predicted 92% variation in project sustainability from the given change in the level or ways beneficiaries are getting involved in the management of the project. The R-square (R2 =0.366) implies that the total variance in sustainability of project is explained by level of beneficiary involvement in managing a project only in the tune of only 37% while the residual 63% remains explained by other factors away from management of the project by beneficiaries. These other factors are represented by the error term (et) component in the regression equation. Therefore, further research (perhaps using different methodology) should be conducted to investigate the other unknown factors beyond involvement in management of projects that also influence the sustainability of donor-funded projects in Tanzania. Thus, project sustainability must or must not only depend on beneficiary involvement in managing the projects, instead, there is potential for increasing project sustainability by paying close attention to other factors that are potential to sustainability of donor-funded projects. However, following limitations of the study, the findings and arising policy implications of this study are as well not foolproof and thus the empirical evidence at this stage is only suggestive and is open for further research.