RISK MANAGEMENT ON PERFORMANCE OF ROAD PROJECT:

CASE OF NATIONAL FEEDER ROADS PROJECT–RTDA, RWANDA

By

JEANNE D’ARC NDUWIYINGOMA

MBA/PM/17/01/827

DISSERTATION SUBMITTED TO SCHOOL OF POSTGRADUATE STUDIES

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
THE MASTER OF BUSINESS ADMINISTRATION IN PROJECT
MANAGEMENT OF UNIVERSITY OF KIGALI

SEPTEMBER 2019
 DECLARATION

I, Jeanne d’Arc NDUWIYINGOMA, do hereby declare that this dissertation entitled

“Risk management on performance of road project. Case of National Feeder roads
project –RTDA, RWANDA” is my own original work and that it has not been submitted
to any other institution of higher learning for any academic award.

Signature: ………………………….. Date: …

Jeanne d’Arc NDUWIYINGOMA

ii
 APPROVAL

This dissertation entitled ―Risk management on performance of road project. Case of

National Feeder roads project –RTDA, RWANDA.” has been submitted to the School of

Postgraduate Studies for examination with the approval of my Supervisor.

Supervisor

Dr SANJA Michael MUTONGWA

Signature: …………………………….

Date: …………………………………..

iii
 DEDICATION

To my parents: Omer NDUWIYINGOMA & Patricia SIMBABAJE

To my siblings: Dr Octave MURISHO

Carmene IRAKOZE

Axel NKURU

iv
 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 supervisor Dr Ogwola Idoko Robert and Dr SANJA Michael MUTONGWA for

their assistance and feedback, a sincere thanks to you.

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

spent to participate, I am grateful.

To HATUNGIMANA Dieudonné family who accept me to share his home in foreign

country, I really appreciate.

To family members, friends, classmates thank you for your boosts and inclusion.

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 TABLE OF CONTENTS

DECLARATION............................................................................................................... ii

APPROVAL ..................................................................................................................... iii

DEDICATION.................................................................................................................. iv

ACKNOWLEDGEMENT .................................................................................................v

TABLE OF CONTENTS ................................................................................................ vi

LIST OF TABLES .............................................................................................................x

LIST OF FIGURES ........................................................................................................ xii

ABBREVIATIONS ......................................................................................................... xii

ABSTRACT .................................................................................................................... xiii

CHAPTER ONE ................................................................................................................1

INTRODUCTION..............................................................................................................1

1.1 Background of the study ................................................................................................1

1.2 Statement of the problem ...............................................................................................5

1.3 Objectives of the study...................................................................................................6

1.3.1 General objective. .......................................................................................................6

1.3.2 Specific objectives. .....................................................................................................6

1.4 Hypothesis......................................................................................................................7

1.5 Scope of the study ..........................................................................................................7

1.5.1 Time scope ..................................................................................................................7

1.5.2 Content scope ..............................................................................................................7

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1.5.3 Geographical scope .....................................................................................................8

1.6 Significance of the study................................................................................................8

CHAPTER TWO ...............................................................................................................9

LITERATURE REVIEW .................................................................................................9

2.0 Introduction ....................................................................................................................9

2.1Conceptual review ..........................................................................................................9

2.1.1Concept of fund risk management .............................................................................10

2.1.2Concept of environmental risk management .............................................................12

2.1.3Concept of human resource risk management ...........................................................13

2.1.4Concept of operational & technical risk management ...............................................14

2.2 Theoretical Review ......................................................................................................16

2.2.1.1Risk society theory ..................................................................................................16

2.2.1.2 Decision theory ......................................................................................................17

2.2.1.3 Theory of Change ..................................................................................................18

2.2.1.4 Historical perspective of risk management in road construction ...........................19

2.2.2 Risk management process .........................................................................................20

2.2.2.1. Risk Identification phase.......................................................................................21

2.2.2.2 Risk Assessment phase. .........................................................................................21

2.2.2.3. Risk response ........................................................................................................22

2.2.2.4. Monitoring and Control ........................................................................................23

2.3 Empirical review ..........................................................................................................23

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2.4. Research gap ...............................................................................................................26

2.5 Conceptual framework .................................................................................................27

CHAPTER THREE .........................................................................................................29

RESEARCH METHODOLOGY ...................................................................................29

3.0 Introduction ..................................................................................................................29

3.1. Research design ..........................................................................................................29

3.2. Study population .........................................................................................................29

3.3 Reliability and Validity ................................................................................................30

3.4. Data collection instruments.........................................................................................31

3.5. Data analysis ...............................................................................................................31

3.6. Limitations ..................................................................................................................31

3.7. Ethical considerations .................................................................................................31

CHAPITER FOUR ..........................................................................................................33

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS ...........33

4.0 Introduction ..................................................................................................................33

4.1. Respondents profile ....................................................................................................33

4.1.1 Age of respondents ...................................................................................................35

4.1.2 Gender of respondents ..............................................................................................35

4.1.3 Education of respondents ..........................................................................................35

4.1.4 Experience of respondents ........................................................................................35

4.2 Risk management on road project................................................................................36

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4.2.1 Fund risk management ..............................................................................................36

4.2.2 Environmental risk management ..............................................................................38

4.2.3 Operational and technical risk management. ............................................................39

4.2.4 Human resource risk management ............................................................................41

4.2.5 Performance on road project .....................................................................................43

4.3 Findings of correlation analysis ...................................................................................44

4.4 Findings of regression analysis ....................................................................................46

4.5 Objectives Test.............................................................................................................48

4.6 Test of Hypothesis .......................................................................................................49

CHAPTER FIVE .............................................................................................................50

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS .................................50

5.0 Introduction ..................................................................................................................50

5.1 Summary of findings....................................................................................................50

5.2 Conclusion ..................................................................................................................53

5.3 Recommendations ........................................................................................................54

5.4Areas for further research .............................................................................................55

REFERENCES .................................................................................................................56

APPENDIX 1: QUESTIONNAIRE................................................................................63

Appendix 2: INTERVIEW GUIDE ................................................................................67

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 LIST OF TABLES
Table 2.1: Risk management principles ...................................................................... 19

Table 3.2: Target Population....................................................................................... 30

Table 3.3 Reliability Statistics .................................................................................... 30

Table 4.1 Respondents characteristics ........................................................................ 34

Table 4.2: Fund risk management. .............................................................................. 37

Table 4.3: Environmental risk management. .............................................................. 38

Table 4.4: Operational and technical risk management .............................................. 40

Table 4.5: Human resource risk management............................................................. 42

Table 4.6: Performance of road project ...................................................................... 43

Table 4.7: Correlation between variables ................................................................... 45

Table 4.8: Model summary ......................................................................................... 46

Table 4.9: Analysis of variance .................................................................................. 47

Table 4.10: Test of coefficients. ................................................................................. 47

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 LIST OF FIGURES

Figure 2.1: Conceptual framework. .............................................................................28

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 ABBREVIATIONS

ADB African Development Bank

BADEA Arab Bank for Economic Development in Africa

CIMA Chartered Institute of Management Accountants

D1-D2 District Roads class 1, 2

DBT Design Build and Transfer

EU European Union

GDP Gross Domestic Product

GoR Government of Rwanda

ICI & IDC Investment Company Institute & Independent Directors Council

ISO International Organization for Standardization

JICA Japan International Cooperation Agency

MININFRA Ministry of Infrastructure

PMI Project Management Institute

PRP Performance of road project

PWC Price Water house Coopers

RTDA Rwanda Transport Development Agency

REMA Rwanda Environment Management Authority

RM Risk Management

RMF Road Maintenance Fund

SWOT Strength Weakness Opportunity and Threats

UN United Nations

WBS Work Breakdown Structure

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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.

xiii
 CHAPTER ONE

INTRODUCTION

1.1 Background of the study

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

(White house, 2014).

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

determined collaboratively between state and municipal agencies (Hofverberg, 2014).

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

1
boost GDP immediately through stimulation of aggregate demand in economies operating

below capacity (Warner, 2014).

The Goal 9 of 2015 UN general assembly resolution point out that its target was to ―Build

resilient infrastructure, promote inclusive and sustainable industrialization and foster

innovation‖ (The 2030 Agenda for Sustainable Development, 2015).Furthermore, roads

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-

orchestrated plan for China to be the dominant foreign force in twenty-first-century

Africa (Moyo, 2010).

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,

and CRBC) who does the job.

Government and organizations usually embark on different projects with the aim of

creating new service or improving the functional efficiency of the existing ones

2
(Pūlmanis, 2013).Since 2008, the government of Rwanda sets the feeder road in order to

improve rural development. In response, the Ministry of Infrastructure in partnership with

the Ministry of Agriculture and Animal Resources together with other key stakeholders

developed the Feeder Roads Policy. The government of Rwanda fully recognizes the

importance of the Labour Intensive Public Works Sector in contributing towards

attainment of the goals of the Government‘s Vision 2020 which consists of transforming

Rwanda from a low-income to a middle income country with a dynamic, diversified,

integrated and competitive economy. The major focus of the Labour Intensive Public

Works Sector supports the establishment and rehabilitation of infrastructures that form

the socio-economic base for the country‘s development (MININFRA, 2017).

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%,

respectively (MININFRA, 2017). MININFRA is responsible for overall transport policy

and strategic planning, the creation of a transport enabling environment, and setting of

transport rules, regulations, standards and strategic planning. Law N°02/2010 of

20/01/2010 establishing Rwanda Transport Development Agency (RTDA).

3
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

registers or matrices and on a number of different projects (Philips, 2008).Knowledge and

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,

operations undertaken, in respect of environment, its protection and HR hiring and

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

construction industry, risk management is not commonly used. More construction

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

4
risk management should be of interest to any project manager. (Gajewska & Ropel,

2011).

1.2 Statement of the problem

A performing road project should meet the cost, quality, time and safety needs through an

effective management of funds, human resource, operation, technical and environment.

Ideally, where there is a good risk management culture, it would necessarily impact

positively on performance of public project. Risks well managed should be identified

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

effective public project performance cannot be over emphasized, it is observed that in

Rwanda risk management system has not been fully entrenched and this has affected the

performance of projects. The practice of risk management in roads project is low as

applicable in public sector as is facing a number of challenges. As said by the general

5
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

ask themselves about it (Rwanda today, August 2018).

1.3 Objectives of the study.

The objectives of the study were classified into two parts: General or global objective and

specific objectives.

1.3.1 General objective.

The general objective of this study was to examine risk management on the performance

of a road projects in Rwanda.

1.3.2 Specific objectives.

The specific objectives were the following:

1. To assess the effect of fund risk management on performance of road project in

Rwanda.
2. To examine the effect of environmental risk management on performance of
road project in Rwanda.

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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.

H2: Environmental risk management has a statistical significance on performance of road

project in Rwanda.

H3: Human resource risk management has a statistical significance on performance of

road project in Rwanda.

H4: Operational& technical risk management has a statistical significant on performance

of road project in Rwanda.

1.5 Scope of the study

This study is limited in terms of time, geographic and content scope.

1.5.1 Time scope

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.

1.5.2 Content scope

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.

1.6 Significance of the study

Risk management helps to pinpoint your plan‘s weaknesses and gives a useful insight into

your project‘s overall health (Barker & Cole, 2012).

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

objective because there is no project without risks.

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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

a conceptual framework are discussed.

2.1 Conceptual review

Risk is the possibility that an event will occur and adversely affect the achievement of

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

construction, human resource and operational & technical as its variables.

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

9
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

safety provision to users, productivity, cost-effectiveness, environmental protection,

preservation of investment and other functions. Performance indicators of this study are

linked to policy objectives and to implementation targets or minimum acceptable levels of

performance, sometimes termed performance criteria and/or benchmarks and/or

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.

2.1.1 Concept of fund risk management

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

of payments, advance payment, project time extension, procurement plan, material

procurement (Sharaf, 2015).

Estimating risk required contingency fund. Cost overrun are a critical problem for

construction problem. The common practice for dealing with cost overrun is the

assignment of an arbitrary flat percentage of the construction budget as a contingency

fund.

10
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

providing a range of possible final costs (Infrastructure risk group, 2013).

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

have provided oversight of risk management as part of their oversight responsibilities.

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

following: implementation risk (non‐performing borrower/intermediary, as appropriate),

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

(war and civil disturbance, expropriation, breach of contract).

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

11
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).

2.1.2 Concept of environmental risk management

The risks factors for natural disaster risks come from; earthquake, flood, fire, tornado,

war, revolution. Those for environmental risks come from environmental factors,

subsurface conditions, geotechnical survey, dewatering, inaccurate survey (Sharaf, 2015).

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

proliferating for a variety of reasons—to access valuable natural resources such as

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

12
negatively affect species, habitats, and physical and chemical characteristics at the site

and landscape levels.

The indicators of environmental risk management are 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).

2.1.3 Concept of human resource risk management

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

highway administration, 2012).

Risks factors of human resources come from: staff training, staff availability, change in

organization, staff teamwork , staff experience, manager experience, project management

plan, consultant experience, contractor experience, subcontractor experience,

communication plan (Sharaf, 2015). Human resources risks come from: Conflict not

managed; poor organization, definition or allocation of responsibility, or otherwise

absence of motivation; poor use of accountability; absence of leadership, or vacillating

management; consequences of ignoring or avoiding risk (Rezakhani, 2012).

13
Human resources professionals must increasingly adopt a proactive risk-based and

business-focused approach rather than a reactive and risk-averse legislative compliance

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

impact of not taking action.

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

(human incompetence/error, temporary or permanent disabilities, death, divorce,

inadequate management practices and procedures, employee fluctuation) (Anaraki

&Ganjali, 2014). The indicators of human resource risk management are: average time to

achieve goals, education& training, duration in position, retention of talent.

2.1.4 Concept of operational & technical risk management

Risks factors for both operation and technical risks come from condition, availability,

storage, maintenance, mobilization of equipment (Sharaf, 2015).

A. Operational risk refers to an event or incident that causes a negative consequence to

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

14
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. 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

commissioning (Ghazali, 2009).

Risks can also come from the design risk like: road alignment, design error, traffic flow,

alignment availability, change in design, scope imprecision, shortage of information,

improper feasibility study (Sharaf, 2015). Operational risks often occur due to breakdown

or lack of systems, procedures, processes or technology and lack of acceptance of

changes that affect normal business operation. This includes: burdensome processes that

are ignored or are not fully implemented; new or untrained staff; informal operational

procedures; incomplete, inaccurate or poor data and data systems; inaccurate or

incomplete asset performance and condition information or assessment, and; inaccurate

forecasting models and lack of necessary business intelligence (Federal highway

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,

15
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

or omissions (Menard, 2017).

2.2 Theoretical Review

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.

2.2.1.1 Risk society theory

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

management is not a one-time or periodic assessment of risks; rather, it should be an

ongoing part of business operations. Risk management fills a need not met by individual

control functions such as compliance, legal, or internal audit. Risk management is

everyone‘s responsibility. Each person and business unit in an organization ―owns‖ a

piece of risk management (Investment Company Institute, 2011).

16
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

corporate governance only. Challenges such as delays, underestimation, failed

procurement and unavailability of private financing are common to the success of a

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

advantage, adds value and enables an organization to achieve its aims.

2.2.1.2 Decision theory

Decision theory is the part of probability theory that is concerned with calculating the

consequences of uncertain decisions. This can be applied to state the objectivity of a

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

17
reduction preferable. To describe risk preferences, decision theory can be applied for a

more mathematical approach to choices involving risks (Versluis, n.d)

2.2.1.3 Theory of Change

A theory of change is a method that explains how a given intervention, or set of

interventions, is expected to lead to specific development change, drawing on a causal

analysis based on available evidence. The purpose of theory of change is first,

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

articulating the causes of a development challenge, making assumptions explicit on how

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

assumptions among programme planners, beneficiaries, donors, programme staff, etc. It

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

Vision 2020 which consists of transforming Rwanda from a low-income to a middle

income country with a dynamic, diversified, integrated and competitive economy. Here

are principles of risk management:

18
Table 2.1: Risk management principles

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

Risk Management should be dynamic, Risk Management should facilitate

responsive, and iterative continual improvement

Source: Anaraki & Ganjali (2014). Human resource risk management, In Applied mathematics in
engineering, management and technology, 2 (6), 129

2.2.1.4 Historical perspective of risk management in road construction

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

4,000 B.C. in the Indian subcontinent and Mesopotamia (Abrams, 2013).

19
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;

however, diffraction of sound must be addressed.

2.2.2 Risk management process

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

monitoring as the four steps of RMP.

20
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

a risk description work sheet.

2.2.2.2 Risk Assessment phase.

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

the identification phase.

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

21
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

stakeholders or experts provide their judgment. This method is generally used

when there is little measurable information but opinions are still available.

b. The deterministic approach is the simpler of the two numeric approaches. It

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

‗worst case‘ scenario. The objective is to represent a range of impacts up to the

level of this ‗worst case‘ scenario.

c. A probabilistic risk assessment evaluates the relative likelihood of different levels

of loss or damage for a number of individual scenarios taken from a range of

possible events. Decisions can then be taken whether to act based on a set level of

risk tolerance.

2.2.2.3. Risk response

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,

reduction/mitigation, transferring, and retention (accepting).

22
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

on already identified risks if more information becomes available (Winch, 2010).

Monitoring and control of risks and opportunities should be done on a regular basis.

2.3 Empirical review

The study by Musirikare and Kule (2016), with the general objective to examine the

relationship between delays and cost overruns on project performance of public

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

2009 till 2012 in Gasabo, a district in Kigali, Rwanda.

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

construction projects were offered to contractors through a Rwanda Public Tender

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

23
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 bidding process.

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

were all due to changes in design drawings.

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

materials difficult for regeneration of vegetation on the roadside. In addition, the

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

clearing of vegetation and displacement of wildlife during road construction can be

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

from the perspective of public sector clients.

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

to get their personal opinions and views.

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-based organizations. Such organizations have highly educated employees or

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

organizational operation, is receiving increasingly more attention. Very few

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.

2.4. Research gap

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

from the foregoing literature review in a comprehensive approach to clarify usefulness of

risk management for road project.

Risk management facilitates efficient performance of road project by ensuring

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

in every areas of public project in order to succeed and exceed expectations of

stakeholders.

2.5 Conceptual framework

The general objective of this study is to examine the risk management on the performance

of public project in Rwanda.

27
Figure 2.1: Conceptual framework.

Independent variable Dependent variable

Risk Management Factors Performance Indicators

Fund risk management

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

Operational and technical risk

management

Project life communication

Risk register
Feasibility Study

Source: The Researcher (2019).

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

procedure and tools, data analysis, limitations and ethical considerations.

3.1. Research design

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

collaborators. Quantitative approach has used a questionnaire and descriptive statistics

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

on road project performance.

3.2. Study population

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

sampling of 4 contractors, 13 project managers, 5 consultants and 10 engineers a sum of

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.

Table 3.2: Target Population

Respondents Target population

Contractors 4

Project managers 13

Consultants 5

Engineers 10

Total 32

Source: Field data, 2019

3.3 Reliability and Validity

Reliability was used to test the consistency of the research instrument through Cronbach

Alpha test.

Table 3.3 Reliability Statistics

Cronbach's Alpha Based on

Cronbach's Alpha Standardized Items N of Items
.829 .815 .31

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

data collection: questionnaire survey and interviews.

Questionnaire is a set of questions organized in a logical way and to be completed by the

respondents. It permits them to be at ease while completing, answering according to their

convenience. Data are collected rapidly with a dispersed population.

3.5. Data analysis

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

Y=α+β1X1+ β2X2+ β3X3+ … Where Y was the Road project performance,

ɑ as Constant

β as Standard coefficient of variables (Fund, Environment, Operation and technical and

HR)

X as Variable contributions (Fund, Environment, Operation and technical and HR)

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

ongoing projects in country side.

3.7. Ethical considerations

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

institution and the country.

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

stage of the research

32
 CHAPITER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

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.

4.1. Respondents profile

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

Age Frequency Percentage

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

collaborators (consultants, contractors) were made by a youth teammate who are

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

above 56 years old.

4.1.2 Gender of respondents

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

minority was explainable as most of them are mothers.

4.1.3 Education of respondents

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

aim of developing an enlightened and responsible leadership to undertake efficiently road

project in Rwanda.

4.1.4 Experience of respondents

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

technical performance of projects in Rwanda.

4.1.5 Qualification of respondents

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.

4.2 Risk management on road project

The researcher collected risks related to each variable of risk management in

construction.

4.2.1 Fund risk management

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

disagree, 2 as disagree,3 as not sure, 4 as agree and 5 as strongly agree).

36
Table 4.2: Fund risk management.

________________________________________________________________________

Statement N Mean SA% A% N% D% SD%

Delays in financing projects and

transactions. 32 1.88 - 9.4 15.6 28.1 46

Cost estimation risk 32 2.75 3.1 31.2 15.6 37.5 12.5

Liquidity risk. 32 3.41 15.6 31.2 37.5 9.4 6.2

There is a contingency plan. 32 4.06 25 62.5 6.2 6.2 _

Risk of currency devaluation. 32 3.34 9.4 53.1 12.5 12.5 12, 5

Average 32 3.088 13.275 37.48 17 18.7 21.57

_____________________________________________________________________________

Source: Field data, 2019

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

made on financing projects in time (very weak mean of 1.88).

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

Strongly disagree, 2 as disagree,3 as not sure, 4 as agree and 5 as strongly agree).

Table 4.3: Environmental risk management.

______________________________________________________________________

Statement N Mean SA% A% N% D% SD%

Delays because of expropriation problems such as lack

of land study 32 3.38 21.9 28.1 16 34.4 -

Lack of wild life protection 32 3.69 18.8 56.2 3.1 18.8 3.1

The government undertake policies and resources to

protect environment 32 3.09 9.4 31.2 28.1 21.9 9.4

Risks are eliminated by changing the design of

the project. 32 3.31 6.2 50 21.9 12.5 9.4

Average 32 3.367 14.075 41.38 17 21.9 7.3

___________________________________________________________________________________

Source: Field data, 2019

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

3.31).The government undertake policies and resources to protect environment (31.2%

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

Strategy for Transformation, NST1/Seven Years Government Program (2017-2024) sets

the priority for a green economy approach in its Economic Transformation pillar that

promotes ―Sustainable Management of Natural Resources and Environment to Transition

Rwanda towards a Green Economy‖. Moreover, environment and climate change were

highlighted in NST1 as cross-cutting areas of policy concern which can be positively

impacted by a range of development activities with priority given to agriculture,

urbanization, industries and energy‖.

4.2.3 Operational and technical risk management.

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

stated (1 as Strongly disagree, 2 as disagree,3 as not sure, 4 as agree and 5 as strongly

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
______________________________________________________________________________

Source: Field data, 2019

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

Nile Ridge foothills integrated environmental management project in Muhanga district ‖

it was found that there is positive correlation between operation risk identification and

success of Ridge Foothills Integrated Environmental Management Project. The study

further demonstrated that there were a strong relationship between the operation risk

assessment and success of Ridge Foothills Integrated Environmental Management

Project. It was found out that the project could not perform without effective risk

efficiency and effective risk identification process. The positive coefficient of

determination of .862 indicates that there is positive correlation between risk

identification and success of Congo Nile Ridge Foothills Integrated Environmental

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

success of Ridge Foothills Integrated Environmental Management Project. Altogether,

capacity building in RM is mandatory for project success.

4.2.4 Human resource risk management

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

Strongly disagree, 2 as disagree,3 as not sure, 4 as agree and 5 as strongly agree).

41
Table 4.5: Human resource risk management.

_______________________________________________________________________
Statement N Mean SA% A% N% D% SD%

Capacity building in risk management

process. 32 3.94 28.1 50 12.5 6.2 3.1

Performance appraisal of the personnel. 32 3.16 _ 50 25 15.6 9.4

Knowledge based management. 32 2.94 3.1 21.9 46.9 21.9 6.2

Average time to achieve goals is within

the project duration. 32 3.16 6.2 40.6 25 18.8 9.4

Improve work environment. 32 3.72 15.6 50 28.1 3.1 3.1

Average 32 3.384 13.25 42.5 28 13.1 6.24

_____________________________________________________________________________

Source: Field data, 2019

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

as Strongly disagree, 2 as disagree,3 as not sure, 4 as agree and 5 as strongly agree).

Table 4.6: Performance of road project

_____________________________________________________________________________________________

Statement N Mean SA% A% N% D% SD%

Effective risk management could meet

the budget 32 4.56 71.9 21.9 _ 3.1 3.1
Effective risk management could lead
to completion in time 32 4.69 68.8 31.2 _ _ _
Effective risk management could lead
to quality 32 4.62 62.5 37.5 _ _ _
Effective risk management could lead
to safety 32 4.53 59.4 34.4 6.2 _ _
Average 32 4.6 35.35 31.25 6.2 3.1 3.1
____________________________________________________________________________________________

Source: Field data, 2019

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

phase on performance of construction projects in Rwanda‖ showed up that the consulting

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.

4.3 Findings of correlation analysis

This part dealt with interpretation of findings about research on risk management on road

project. Firstly, we drawn correlation between indicators of the research (independent

variables and dependent variable). Secondly, we made a regression analysis.

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).

Source: Field data, 2019

Comparatively to the variable of performance on road project, correlation showed up that

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

RM had a positive effect on performance on road project (0.000), so was for

Environmental RM (0.001) and Human Resource RM (0.001). But Operation and

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

average of linear relationship between dependent and independent variables, anova to

predict level of variability and coefficients to represent the mean change in the response

variable for one unit.

Table 4.8: Model summary

Model Summaryb

Std. Error of the

Model R R Square Adjusted R Square Estimate
1 .838a .703 .659 .36917
a. Predictors: (Constant), HRM, FRM, OTRM, ERM
b. Dependent Variable: PRP

Source: Field data, 2019

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

together influence the dependent variable PRP.

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

be highly accounted at 70.3%.

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

Source: Field data, 2019

The results of the findings showed a significance of 0.000 as P-value this implies that

regression analysis is significant in predicting relationship between RM factors and

project performance factors. By the help of F-test, value of F (4, 27) is 0.136 which is less

than 15.950 meaning that the model was statistically significant.

Table 4.10: Test of coefficients.

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

Source: Field data, 2019

The following equation was found from test of coefficient

Y= 0.55+0.9X1+0.33X2-0.151X3+0.066X4+0.05

=0.6+0.9X1+0.33X2-0.151X3+0.066X4

The regression analysis was taken at 5% of significance level

47
4.5 Objectives Test

4.5.1 Objective 1: Fund RM

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.

4.5.2 Objective 2: Environmental RM

From its objective to examine the effect of environmental risk management on

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

0.014 which is less than 0.05.

4.5.3 Objective 3: Operation and technical RM

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.

4.5.4 Objective 4: Human Resource RM

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

greater than 0.05.

4.6 Test of Hypothesis

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

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

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

and strategy project within the RTDA.

5.1 Summary of findings

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).

The second specific objective was to examine the environmental RM on performance of

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

alternate hypothesis is accepted. The indicators of environmental risk management are

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

significance on performance of road project in Rwanda then indicators of environmental

RM are systematically respected.

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

have a statistical significance on performance of road project in Rwanda so special

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

business-focused approach rather than a reactive and risk-averse legislative compliance

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

significance on performance of road project in Rwanda so specific attention should be

made on practices of RM and proactivity on risk based.

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

unavoidable. As called science of precision, Rwandan‘s engineers in construction need

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

technical RM that were irrelevant through the regression analysis.

5.3 Recommendations

This research recommends to the government, specifically to MININFRA to adopt

effective risk management on road project, specifically on HR and operation and

technical departments where results of the research were irrelevant.

This research recommends to the government, specifically to MININFRA to assess

human resource and operational and technical RM to find out the reasons of less results

from the research.

It also recommends to introduce deep training for all their collaborators both national and

international in RM on fund, operation & technique, environment and human resource in

order to produce infrastructures that significantly last in time.

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

from the first phase as required from interviews.

54
It also recommends to improve staff and collaborators‘ capacity building in risk

management to deal proactively with risks through training on software of risk

management.

5.4Areas for further research

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

My Name is Jeanne d‘Arc NDUWIYINGOMA a student at University of Kigali in Master in

Business Administration in Project management. This is an academic work. The present
questionnaire is about the research which will be submitted for the fulfillment of the requirements
for the award of the degree of MBA of University of Kigali in Rwanda. It deals with ―Risk
management and road project performance in Rwanda. A study of National feeder road
policy and strategy project within RTDA”

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.

Email contact: jeannengoma89@gmail.com

Section I: Respondent profile

A. Age of the respondent

 Between 25-35
 36-45
 46-55
B. Gender
 Male
 Female
C. Education status
 Bachelors
 Masters
 Others
Specify it ……
D. Experience
 0-5 years
 6-10 years
 11 and above

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 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.

1) Fund risk management

Statement SA A N D SD

Delays in financing projects and transactions.

Cost estimation risk

Liquidity risk.

There is a contingency plan.

Risk of currency devaluation

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 2) Environmental risk management

Statement SA A N D SD

Delays because of expropriation problems such as lack of land

study

Lack of wild life protection

The government undertake policies and resources to protect

environment

Risks are eliminated by changing the design of the project

3) Operational and technical risk management

Statement SA A N D SD

Systems are putting in place to deal with the risk register.

Lack of feasibility study.

Lack of capacity building in RM.

Lack of communication during the project life

Risks are transferred within insurance

Delays because of expropriation problems such as lack of land

study

Machinery unmaintained

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 4) Human resource risk management

Statement SA A N D SD

Capacity building in risk management process.

Performance appraisal of the personnel.

Knowledge based management.

Average time to achieve goals is within the project duration.

Improve work environment.

5) Performance of road project

Statement SA A N D SD

Effective risk management could meet the budget

Effective risk management could lead to completion in time

Effective risk management could lead to quality

Effective risk management could lead to safety

Thank you for your time spend answering to this questionnaire.

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Appendix 2: INTERVIEW GUIDE

My Name is Jeanne d‘Arc NDUWIYINGOMA a student at University of Kigali in Master in

Business Administration in Project management. This is an academic work. The present interview
guide is about the research which will be submitted for the fulfillment of the requirements for the
award of the degree of MBA of University of Kigali in Rwanda. Your feedback is very important
as your inputs will be used for academic purposes only. It deals with ―Risk management and
road project performance in Rwanda. A study of National feeder road policy and
strategy project within RTDA”. Your time and attention are appreciated.

1. Do you have knowledge in Risk management?

2. What is the highest risk according to you for road projects?
3. What kind of insurance cover your projects from misacting?
4. Do you think that training in Risk management and its software would have
positive impact on the outcome of road project?
5. What kind challenges do you face on road project that impede on performance?
6. How do you manage risks on road projects?
7. What are the recommendation would you leave about risk management to
perform road project?

THANK YOU SOMUCH!!

67