g14 Thesis

COLLEGE OF ENGINEERING AND TECHENOLOGY
DEPARTEMENT OF CONSTRACTON TECHENOLOGY AND MANAGEMENT
A THESIS SUBMITTED TO THE DEPARTMENT OF CONSTRUCTION

TECHNOLOGY AND MANAGEMENT OF WOLKITE UNIVERSITY
TITLE: “ASSESSMENT OF THE CONTRIBUTION OF THE CONSTRUCTION SECTOR

FOR THE NATIONAL SOCIOECONOMIC DEVELOPMENT (SOCIOECONOMIC
IMPACT)” (CASE STUDY OF WOLKITE TOWN, WOLKITE UNIVERSITY BUILDING
CONSTRUCTION PROJECTS)
GROUP 14 NAME ID.NO

1. Abel Tekle…….......................................…….......................ENGR/048/10
2. Anissa Hjawole………………………………...…….……..ENGR/118/10
3. Binyam Mulugeta..............................………….....................ENGR/217/10
4. Fekadu Baysasaw..................................………..…...............ENGR/385/10
5. Jilalu Sultan…....................................................……............ENGR/1074/10
ADVISOR NAME
1. Mr Berhanu Meberatu
JUNE 16, 2022
WOLKITE, ETHIOPIA
Assessment of the contribution of the construction sector for the national socioeconomic
development (socioeconomic impact): Bsc. thesis
APPROVAL
development (socioeconomic impact)
Submitted by
1. Abel Tekle…….......................................…….......................ENGR/048/10
2. Anissa Hjawole………………………………...…….……..ENGR/118/10
3. Binyam Mulugeta..............................………….....................ENGR/217/10
4. Fekadu Baysasaw..................................………..…...............ENGR/385/10
5. Jilalu Sultan…....................................................……............ENGR/1074/10
Approval for submittal to proposal assessment committe
______________________________ ____________________
(Advisor Name) (Date)
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Collage of Engineering and Technology
Declaration
We declare that this written submission represents our ideas in our own words and where
others ideas or words have been included; we have adequately cited and referenced the
original sources. We also declare that we have adhered to all principles of academic
honesty and integrity and have not misrepresented or fabricated or falsified any
idea/data/fact/source in our submission. We understand that any violation of the above
will be cause for disciplinary action by the Institute and can also evoke penal action
from the sources which have thus not been properly cited or from whom proper permission
has not been taken when needed.
NAME SIGNITURE
1. Abel Tekle ____________________

2. Anissa Hjawole ____________________
3. Binyam Mulugeta ____________________
4. Fekadu Baysasaw ____________________
5. Jilalu Sultan ____________________
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AKNOWLEDGEMENT
First of all, we want to gratefully thank next to God, the main advisor Mr. Berhanu
Meberatu helping us to complete this thesis and the degree of Bsc. program, for his
valuable comments suggestions help to complete the thesis.
Also, we wish to express our sincere gratitude to all who have contributed directly or
indirectly to the success of this thesis without those constant supports and help, the study
would never have been accomplished. Those who have participated in this research
sacrificing their invaluable time are on the front line to receive our appreciation.
Finally, a word of gratitude goes to our family and to our friends for their unconditional
love, constant encouragement, and sincere care as they always did all through our life.
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ABBREVIATIONS
EIA=environmental impact assessment
EPA=Environmental Protection Authority
GDP=gross domestic product
IEE= Initial Environmental Examination
LFS=Labour Force Survey
EMAS=Eco-Management and Audit Scheme
GFCF=Gross Fixed Capital Formation
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ABSTRACT
Now day’s construction industries are increasing in Ethiopia due to implementing major
infrastructure projects together with many public buildings, commercial building, housing
development programs etc. Building Construction projects makes significant contributions to
the socio-economic development process of a country. Its importance emanates largely from
the direct and indirect impact it has on all economic activities. It contributes to the Zonal
output and stimulates the growth of other sectors through a complex system of linkages. It
contributes to employment and creates income for the population and has multiplier effects
on the economy. The building construction projects employ large unskilled labor. Throughout
the developing world, the majority of employees in this building construction projects are
unskilled. Women are also found to be beneficiaries of the employment in the building
construction in another word it makes equal opportunities job for male and women.
However, the employment in this project is mainly temporary in nature and once the job is
over, the workers are obliged to find other jobs or return to their place of origin.
Similar to all other socio-economic activities, another key contribution of the building
construction project is generated income taxes of companies, sales tax, capital gain tax and
employees income tax from those employed in the construction industry, which in turn goes to
the financing of public services such as schools and health institutions among others.
However, building construction project also has negative impact on community like air
pollution, soil erosion, resource consumption, waste generation and impact associated with
transportation. The general objective of this research is to assessing the contribution of the
construction sector for the national socioeconomic development. This research is carried out
by collected data from construction site, gathering information through questioners,
observation and interview of building construction site and also existing building.
Key words: contribution of building construction project
Environmental impact assessment
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Contents
APPROVAL ......................................................................................................................... ii
Declaration........................................................................................................................... iii
ABSTRACT .......................................................................................................................... vi
List of table ........................................................................................................................... x
Table 4.3 Revenue sources from construction project to the government………………...…33

............................................................................................................................................. x
List of figure ......................................................................................................................... x
CHAPTER ONE ................................................................................................................... 1
INTRODUCTION............................................................................................................. 1
1.1 Background of study ................................................................................................ 1
1.2 Statement of the problem ......................................................................................... 1
1.3 Research Questions.................................................................................................. 2
1.4 Objectives of the study ............................................................................................ 2
1.5 Significance of the Study ......................................................................................... 3
1.6 Scope of the Study ................................................................................................... 3
1.7 Limitations .............................................................................................................. 3
CHAPTER TWO .................................................................................................................. 4
LITERATURE REVIEW .................................................................................................. 4
2.1 Definition of the Construction Industry .................................................................... 4
2.2 Construction Industry and National Development .................................................... 4
2.3 Government Initiatives in the Development of the Construction Industry ................. 5
2.4 The Role of the Construction Industry in the National Economy .............................. 6
2.5 The role of the construction industry in an economic ............................................... 6
2.6 The Role of the Construction Industry in the Ethiopian Economy ............................ 7
2.7 Contribution of the Construction Industry to the Economy....................................... 8
2.8 environmental and social impact of building construction project ............................ 8
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2.9 Identification of Environmental Impacts of Construction Activities ....................... 11
2.10 Overview of EIA system in ethiopia .................................................................... 16
2.11 Status of the EIA System and Key Issues Raised In the Procedure ....................... 17
2.12 Some of the Important Aspects (Elements) Of EIA Procedural Guidelines ........... 17
CHAPTER THREE............................................................................................................. 19
RESEARCH METHODOLOGY ..................................................................................... 19
3.1 Introduction ........................................................................................................... 19
3.2 Study period .......................................................................................................... 19
3.3 Design of study...................................................................................................... 19
3.4 data collection method ........................................................................................... 19
3.5 Data collection instrument ..................................................................................... 20
3.6 Study area.............................................................................................................. 20
3.7 Sample Size and Sampling Procedures................................................................... 20
3.8 Research procedure................................................................................................ 20
3.9 Data process and analysis ...................................................................................... 21
CHAPTER FOUR ............................................................................................................... 22
DATA ANALYSIS, RESULTS AND DISCUSSION ..................................................... 22
4.1 Introduction ........................................................................................................... 22
4.2 Contribution to employment .................................................................................. 22
4.3 Contribution to government revenue ...................................................................... 24
4.4 contribution to community around site ................................................................... 25
4.5 Environment impact assessment ............................................................................ 26
4.6 Environment impact assessment on building construction ...................................... 26
4.7 Impact analysis ...................................................................................................... 27
4.8 way to reduce negative impact of building construction on environment ................ 30
CHAPTER FIVE ................................................................................................................ 32
CONCLUSIONS AND RECOMMENDATIONS ........................................................... 32
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5.1 Conclusions ........................................................................................................... 32
5.2 Recommendations ................................................................................................. 33
REFERENCES ................................................................................................................... 35
ANNEX .............................................................................................................................. 36
APPENDIX 1 Questionnaire for consultant and contractor respondents........................... 36
APPENDIX 2 Questionnaire for owner/client respondents .............................................. 40
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List of table
Table 4.1 numbers, returned and well completed contribution for employer ……........................31
Table 4.2 building construction project ………………………………………………………………32
Table 4.3 Revenue sources from construction project to the government………………...…33
Table 4.4 sources or causes of impact of construction project on environment………………………36
Table 4.5 mitigation measures for the identified negative impact………………………...…39
List of figure
Figure 4.1 contribution of building construction project to employer……………….………33
Figure 4.2 revenue sources from construction project from the government………………..34
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CHAPTER ONE
INTRODUCTION
1.1 Background of study
The construction industry plays an essential role in the socio economic development
of a country. The activities of the industry have a lot of significance to the
achievement of national socio-economic development goals of providing infrastructure,
sanctuary and employment. It includes hospitals, schools, townships, offices, houses and
other buildings; urban infrastructure (including water supply, sewerage, drainage);
highways, roads, ports, railways, airports; power systems; irrigation and agriculture
systems and telecommunications
A construction project causes great impact on environment. It is necessary to provide

mitigation measures to minimize the fast growing threat of environmental impacts of
building construction projects. Environmental impacts of building construction activities may
vary from country to country.
Major environmental impacts of construction projects are such as:-Solid and liquid waste
disposal, Pollution, Resource use and habitat destruction, Desertification, Soil erosion and,
Material wastage etc.
EIA is an important management tool to identify the major environmental impacts of

construction projects to improve the effectiveness of environmental management systems.
Prediction of the environmental impacts of construction project before the construction
work, leads to improvements in the environmental performance of construction projects
and sites .
The construction sector holds immense potential for stimulating growth, boosting
project exports and generating employment. The role of the construction industry in terms of
creating employment opportunities especially in urban areas is becoming visible. According
to the 1999 Labor Force Survey (LFS), of the total employed persons in the country which
was estimated at around 25 million, 0.9 percent was estimated to be in the construction
industry. (Ethiopian, Volume VI 2006/07)
The contribution of the industry in terms of creating employment has slightly improved over
the years. For instance, according to the 2005 LFS, of the total employed population in the
country (31.4 million), 1.4 percent was estimated to be in the construction industry. The
construction industry also contributes to the generation of revenue for the government. The
rental income tax is one of the major revenue sources within the construction industry to the
government. (Ethiopian, Volume VI 2006/07)
1.2 Statement of the problem

The construction industry plays a vital role on the development of national economy of a
country. In today’s construction project there is several lack of environmental impact
assessment programs with respect to social and economic impacts to the environment. There
are many construction projects in Wolkite town, but in our case in Wolkite University
construction project the environmental and social impact assessment has not been conducted
for different construction projects. Construction is a major consumer of natural resources and
its activities has adverse effects on the environment. Construction generates so much waste
into the environment which turns out to affect the quality of life in every country. Extensive
site clearing, waste production from construction works, toxic emission from construction
machinery and dereliction of land due to aggregate winning activates are among the
numerous negative impact of building construction. And also in Wolkite university student
cafeteria the solid and liquid waste disposal area is not considered when the project is
designed also this is considered as negative impact of construction project which affect the
environment. Among the listed different types of negative impact of construction project our
thesis was concerned with the solid and liquid waste management and design consideration.
By considering those listed impact our aim is to give mitigation measure for negative impact
and what are the positive impacts of construction project that contribute to the national
development.
1.3 Research Questions
We try to find and investigate more answers to the following questions that are related to
the main subject matter under study.
 What are the positive and negative impacts of building construction project on the
environment?
 What are mitigating measures to reduce the impact of building construction project
on the environment?
 What are the contributions of the building construction project to the zonal
development?
1.4 Objectives of the study
1.4.1 General objective

The general objective of study is to assessing the contribution of the construction sector for
the national socioeconomic development (socioeconomic impact)
1.4.2 Specific objective

1. To identify, and evaluate impact of construction project on the environment.
2. Take mitigating measures to reduce the impact of construction project on the
environment.
3. To investigate the contribution of the construction project to the national
development.
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1.5 Significance of the Study

As far as the research will reach the mission and vision in which it will strong for
contribution of construction sector to the national development with respect to
socioeconomic impact have the following significance.
A study on contribution of construction sector to the national development is very

necessary in that helps us to find out the success of the programs objective.
The prospective beneficiaries of this study will be:
1. Educational institutions, which use the information for academic purposes.

2. Private/governmental organizations.
3. Academic and research institutions conducting future studies in contribution of
construction project to the national development.
1.6 Scope of the Study

Since examining all the various possible reason is to perform the contribution of
construction sector to the national development. The scope of this thesis delimited to
identifying, predicting, evaluating and mitigating measure to the contribution of
construction sector to the national development with respect to socio-economic impact.
In order to make the research manageable , the study area scoped to wolkite town , which
are found in southern nation and nationality .As well as we scoped this study on Wolkite
university campus that also found in Wolkite zone. Its area is covered with different
infrastructure some of the infrastructure are construction works so in this work there is socio-
economic impact.
So our aim is to give solution for such like problem by using different data collection
methodology from different construction sites
1.7 Limitations
 Lack of internet access
 Lack of electricity
 Not enough time to conduct the thesis
 The questionnaires is not fully or completely responded by the respondent

CHAPTER TWO
LITERATURE REVIEW
2.1 Definition of the Construction Industry
The construction industry is a sector of the economy that transforms various resources into
constructed physical economic and social infrastructure necessary for socio-economic
development. It embraces the process by which the said physical infrastructure are planned,
designed, procured, constructed or produced, altered, repaired, maintained, and demolished.
The constructed infrastructures include:
 Buildings
 Transportation systems and facilities which are airports, harbors, highways,
subways, bridges, railroads, transit systems, pipelines and transmission and power
lines.
 Structures for fluid containment, control and distribution such as water
treatment and distribution, sewage collection and treatment distribution systems,
sedimentation lagoons, dams, and irrigation and canal systems.
 Underground structures, such as tunnels and mines.
The construction industry is traditionally divided into three sub-sectors. They are:
1) The construction of buildings;
2) Road, highway, and other “infrastructure” construction; and
3) Specialty trades.
It thus encompasses all the businesses that build either houses and office buildings or
highways and bridges, as well as those who do the specialized work of electricians,
plumbers and masons, who are typically involved in the construction of all kinds of
structures.
The construction industry is a fundamental economic sector which permeates most of the
other sectors as it transforms various resources into constructed physical economic
and social infrastructure necessary for socio-economic development.
2.2 Construction Industry and National Development
2.2.1 Government Economic Reforms
The various economic reforms undertaken by the government in recent years have
gradually continued to bring positive economic effects. The long term development
goal of Ethiopia is to reduce poverty by raising the standard of living and quality of
life of the people through the enhancement of all productive and non-productive sectors
of the economy from the present level of per capita income of about USD 392 to the
tune of USD 2000 for a typical medium developed country (National Vision –
2025). It is envisaged that the development of any nation can be measured through
the availability of constructed buildings to cater for provision of decent shelter and the

availability of infrastructure facilities to cater for the movement of people, goods,

and services. ((construction and Ministry of Urban Development), July 2012)
Together with the national strategic goal, the Construction Industry Policy likewise
takes into account the significant role of the other guiding national initiatives like National
Poverty Eradication Strategy, Civil Service Reform programmed, Private Sector
Involvement in Economic Development, Strategic Environmental Sustainability, Gender
Issues, Eradication of Diseases and Literacy Campaign and other sectorial development
programmers. (Ministry Of Works, November, 2009)
2.2.2 Construction Industry Policy
The National Construction Industry Policy takes into account of the fact that the realization
of the objectives and goals of the identified priority sectors such as education, health, water,
agriculture, manufacturing, tourism, mining, energy, construction, land and good
governance operates on the availability of reliable, strong and competitive local
construction industry which is capable of delivering quality services to its
stakeholders. New investments in the construction and rehabilitation of infrastructure
will be given priority parallel with the maintenance of the existing constructed
facilities so as to enable speedy development of the other sectors which depend upon the
performance of the local construction industry. The interim policy is anticipated to
provide guidance towards the increased involvement of the local construction industry
in construction activities. (Development, July 2012)
The Construction Industry Policy emphasizes the development of an efficient and
self-sustaining roads network that is capable of meeting the diverse needs for
construction, rehabilitation and maintenance of civil works for trunk, regional, districts and
feeder roads network through the involvement of private sector. Public sector
involvement in the enhancement of housing, infrastructure and other constructed
facilities to assist in the mobilization of financial resources as well as capital investment
will be emphasized. The pursuance of all the above general goals will be carried out in
tandem with all the other key national sectorial policies, e.g. agricultural policy, land
policy, investment policy, industry and trade policy, energy policy, housing policy,
health, education and all other sectorial policies which have direct or indirect impact
on the construction sector. (development, 2012)
2.3 Government Initiatives in the Development of the Construction Industry
Since 2005 there have been a number of government led initiatives geared towards fostering
the local construction industry. In October 2005 responsibility nationally for the
construction sector was assigned by Government to the newly created Ministry of Works
and Urban Development. Progress and achievements during the Development and Poverty
Reduction Program period was realized in four main areas:
 Development of the Construction Sector Capacity Building Program (2002-2006).

 Formulation of the ‘Industrial Development Strategy’ (August, 2002), which

highlights the importance of the construction sector, and provides direction to
Federal and Regional authorities.
 Development and initiation of the Engineering Capacity Building Program Road
Map (2005-2009).
 Adoption of a Finance Law and a subsequent procurement guideline for service and
works as part of ongoing Civil Service Reform.
 Establishment of Vocational Training Centre’s, expansion and improvement of
training institutes and universities so as to address shortage of skilled manpower;
 Promotion of professional and trade associations
 Mobilization of donor support in financing infrastructure projects in support
of the local economy;
Despite such interventions, the state of the local construction industry has remained poor.
Thus, the industry continues to exhibit features that include inadequate capacity, lack
of working capital, low participation in work opportunities, dominance of foreign players
and poor quality services and products. (Development, July 2012)
2.4 The Role of the Construction Industry in the National Economy
In order to discuss the role of the construction industry in a given economy we need to have
a clear definition of the industry itself. International Standards Industrial Classification
(ISIC), construction is defined generally as an economic activity directed to the creation,
renovation, repair or extension of fixed assets in the form of buildings, land improvements
of an engineering nature, and other such engineering constructions as roads, bridges, dams,
etc. (Wells J, 2008)
The industry consists of a group of establishments engaged in one or more of the following
activities: Site preparation; Building of complete constructions or parts thereof, civil
engineering; Building installation, Building completion and Renting of construction or
Demolition equipment with operators. The industry includes all activities of construction
irrespective of whether they are carried out by private or public construction firms, whether
done on a contractual basis or of own account. (Wells J, 2008)
2.5 The role of the construction industry in an economic
Construction industry makes significant contributions to the socio-economic development

process of a country. Its importance emanates largely from the direct and indirect impact it
has on all economic activities. It contributes to the national output and stimulates the growth
of other sectors through a complex system of linkages. It is noted that about one-tenth of the
global economy is dedicated to constructing and operating homes and offices. UNEP further
observes that the industry consumes one-sixth to one half of the world’s wood, minerals,
water and energy. It contributes to employment and creates income for the population and
has multiplier effects on the economy. The construction industry employs large unskilled
labor. Throughout the developing world, the majority of employees in the industry are
unskilled. Women are also found to be beneficiaries of the employment in the industry.

However, the employment in the industry is mainly temporary in nature and once the job is
over, the workers are obliged to find other jobs or return to their place of origin. (Ethiopian,
Volume VI 2006/07)
Similar to all other socio-economic activities, another key contribution of the construction
industry is revenue generation to government. The construction industry contributes to
economic activity through generation of revenue for government from corporate income
taxes of companies, the rental income, sales tax, capital gain tax and employees income tax
from those employed in the construction industry, which in turn goes to the financing of
public services such as schools and health institutions among others. (Ethiopian, Volume VI
2006/07)
2.6 The Role of the Construction Industry in the Ethiopian Economy
2.6.1 Contribution to national income
According to the report of the Ethiopian Economic Association, the construction industry
has important contributions to the Ethiopian economy, as demonstrated by its share in the
GDP. For instance, the share of the sector in the total GDP averaged at about 5.2 percent in
the period 2002/03- 2006/07. (Development, July 2012)
The sector has registered relatively higher growth as compared to the growth of GDP during
this period. Over this period, there has been increased investment on the development and
expansion of various infrastructure projects like roads, airports and residential and non-
residential housing units. (Development, July 2012)
2.6.2 Contribution to employment
The role of the construction industry in terms of creating employment opportunities

especially in urban areas is becoming visible. According to the 1999 Labour Force Survey
(LFS), of the total employed persons in the country which was estimated at around 25
million, 0.9 percent was estimated to be in the construction industry. The contribution of the
industry in terms of creating employment has slightly improved over the years. For
instance, according to the 2005 LFS, of the total employed population in the country (31.4
million), 1.4 percent was estimated to be in the construction industry. (Wagaye Tefera,
December, 2014)
2.6.3 Contribution to government revenue
The construction industry also contributes to the generation of revenue for the government.
The rental income tax is one of the major revenue sources within the construction industry
to the government. The rental income tax which was Birr 15.2 million in 1997/98 has
increased to Birr 78.3 million in 2004/05 but lowered to Birr 32 million in 2005/06
generating nearly half a percentage point of the total government revenue in the period
1997/98- 2005/06. Though there are many other direct and indirect revenues that are

generated from the construction industry, the paucity of data has limited this report to
indicate the total revenue that is generated. (Ethiopian, Volume VI 2006/07)
2.7 Contribution of the Construction Industry to the Economy
The formation of the fixed capital investment is a vital concern for the state of the nation as
it represents investment in the future of the economy of the country. Fixed investment
usually consists of houses and infrastructures in public and private sectors, as well as the
business investment in plant and machinery of all industries. (Wells J, 2008)
The concept of the gross capital stock is useful in measuring the productive capacity of the
economy. The underlying idea is that a machine or building continues to yield the same
contribution to output each year regardless of its age, until it reaches the limit of its useful
life, when this contribution falls to zero and it is scrapped Investment in the construction
sector can be defined as construction-related to the Gross Fixed Capital Formation (GFCF).
GFCF is an expenditure on fixed assets (buildings, vehicles, machineries, etc) either for
replacing or adding to the stock of fixed assets. These fixed assets are repeatedly or
continuously used in the production process. (Wells J, 2008)
The construction sector constitutes about 40%-60% of GFCF in most developing countries.
The proportion of investment that goes to entirely new construction is likely to be higher
than that which goes to repair and maintenance. In developed countries, the construction
industry accounts for approximately one third of the total investment in physical assets in
the economy. This is about the same as the investment in plant and machinery. (Ganesn,
2011)
The construction investment can be an important public policy tool that is often used by
central and local government to accelerate development and create employment. This
decision is not the result of consumers’ expenditure on goods and services, but as an
investment decision, which has an effect on money injection into the economy. (Ganesn,
2011)
The multiplier effect demonstrates the impact of a change in investment on the levels of
income and employment in an economy. The main concept of the multiplier is based on the
recognition that the various sectors that make up the economy are interdependent. The
construction industry has significant interactions with the other economic sectors as a
backward and forward linkage. The backward linkages show the relationship of inter
industry purchases to total input, while the forward linkages show the relationships of inter-
industry sales to total output. (Ganesn, 2011)
2.8 environmental and social impact of building construction project
Environmental deterioration has captured the world’s attention and has been one of the most
discussed subjects locally, nationally and globally (al, 2002). Langston and Ding (2001)
posited that the world is in crucial environmental catastrophe. The increase in population
and the quest for development such as the built Environment has resulted to ozone layer
depletion, global warming, resource depletion and ecosystem Destruction (ibid). This has

put the built environment and the construction industry under the spotlight since it’s
activities significantly impact on the environment.
Construction activities affect the environment throughout the life cycle of development.
These impacts. Occur from initial work on-site through the construction period, operational
period and to the final demolition. When a building comes to an end of its life. Even though
the construction period is comparatively shorter in relation to the other stages of a
building’s life, it has diverse significant effects on the environment. For that matter, there is
progressively growing concern about the impact of construction activities on human and
Environmental health. Even though, construction project development potentially
contributes to the economic and social development, and enhancing both the standard of
living and the quality of life, it is also associated with deterioration of the environment
(Azqueta, 1992.)
The construction industry has a significant irreversible impact on the environment across a
broad spectrum of its activities during the off-site, on site and operational activities, which
alter ecological integrity (.According to Levin (1997), buildings are very large contributors
to environmental deterioration. It is clear that actions are needed to make the built
environment and construction activities more sustainable (Hill & Bowen,1997; Barret et
al.,1999; Cole, 1999; Holmes & Hudson, 2000; Morel et al., 2001; Scheuer et al., 2003).
Therefore the analysis of the impact of the construction activities on the environment may
need to look at a“cradle to grave” view point (Ofori et al., 2000).
The construction industry is one of the largest exploiters of both renewable and non-
renewable natural resources (Spence &Mulligan, 1995; Curwell& Cooper, 1998; Uher,
1999). It relies heavily on the natural environment for the supply of raw materials such as
timber, sand and aggregates for the building process.
According to World watch institute (2003), building construction consumes 40 percent of
the world’s raw stones, gravel and sand and 25 percent of the virgin wood per year. It also
consumes 40 percent of the energy and 16 percent of water annually. In Europe, the
Austrian construction industry has about 50 percent of material turnover induced by the
society as a whole per year (Rohracher, 2001) and 44 percent in Sweden (Sterner,
2002).The extraction of natural resources causes irreversible changes to the natural
environment of the countryside and coastal areas, both from an ecological and a scenic
point of view (Curwell& Cooper, 1998; Ofori& Chan, 1998;
Langford et al., 1999). The subsequent transfer of these areas into geographically dispersed
sites not only leads to further consumption of energy, but also increases the amount of
particulate matter in the atmosphere. Raw materials extraction and construction activities
also contribute to the accumulation of pollutants in the atmosphere. According to Levin
(1997), in the USA construction is responsible for 40 percent of atmospheric emissions, 20
percent of water effluents and 13 percent of other releases. Dust and other emission include
some Toxic substances such as nitrogen and sulphur oxides. They are released during the
production and transportation of materials as well as from site activities and have caused
serious threat to the natural environment (Spence & Mulligan, 1995; Ofori& Chan, 1998;

Rohracher, 2001). Other harmful materials, such as chlorofluorocarbons (CFCs), are used in
insulation, air conditioning, refrigeration plants and fire-fighting systems and have seriously
Depleted the ozone layer (Clough, 1994; Langford et al., 1999). Pollutants have also been
released into the biosphere causing serious land and water contamination,
Frequently due to on-site negligence resulting in toxic spillages which are then washed into
underground aquatic systems and reservoirs (Kein et al., 1999). According to Langford et al
(1999), about one third of the world’s .Land is being degraded and pollutants are depleting
environmental quality, interfering with the environments Capacity to provide a naturally
balanced ecosystem. A large volume of waste results from the production, transportation
and use of materials (Ofori& Chan, 1998; Kein et al., 1999). It should be noted that
construction activities contribute approximately 29 Percent of waste in the USA, more than
50 percent in the UK and 20-30 percent in Australia (Teo& Loosemore,2001). According to
Levin (1997), in the USA construction contributes 25 percent of solid waste generation. In
The European Union, the construction industry contributes about 40-50 percent of wastes
on per year (Sjostrom&Bakens, 1999; Sterner, 2002). Most construction waste is
unnecessary (Sterner, 2002). He added that many Construction and demolition materials
have a high potential for recycle and reuse. Nevertheless, screening, Checking and handling
construction waste for recycling are time consuming activities and the lack of
environmental awareness amongst building professionals may create significant barriers to
the usefulness of recycling (Langston & Ding, 1997). The depletion of natural resources by
the building industry is a topic of serious discussion as most of the recyclable material from
building sites ends up in landfill sites. Sterner (2002) stated that implementing a waste
management plan during the planning and design stages can reduce waste onsite by 15
percent, and delivers cost savings of up to 50 percent on waste handling.
Besides generating waste, building activities also irreversibly transforms arable lands into
physical assets such as Buildings, roads, dams or other civil engineering projects (Spence &
Mulligan, 1995; Langford et al., 1999; Uher, 1999). According to Langford et al. (1999),
about 7 percent of the world’s cropland was lost between 1980 and 1990. Arable land is
also lost through quarrying and mining the raw materials used in construction. Construction
also contributes to the loss of forests through the timber used in building and in providing
energy for manufacturing building materials. Both deforestation and the burning of fossil
fuels contribute directly to global warming and air pollution. In addition, building industry
considered to be a major consumer of energy and the use of finite fossil fuel resources for
this purpose have contributed significantly to carbon dioxide emissions (Clough, 1994;
Spence & Mulligan, 1995; Ofori&Chan,1998;Langford et al., Uher, 1999). In Europe,
Construction activities have consumed about 40 percent of total energy production
(Sjostrom&Bakens, 1999;Rohracher, 2001; Sterner, 2002).
2.8.1 Impact of construction activities on the environmental
Construction projects have been considered to cause environmental problem ranging from
excessive conception of global resource both in terms of construction and building
operation and the pollution to the urban environment. For example, Guggemos and Horvath

(2006) indicated that the construction of commercial building consumed significant amount
of energy and produce lots of emission and waste and the major contributors were the
inappropriate equipment used in construction phase. Siow et al (2003) identified the
modeling frame work to assess the construction impact during the major construction phase
in the construction of Georg bush intercontinental airport/Houston project.
The construction activity of subway projects often take place in congested urban areas
.Environmental protection is usually strictly in controlling the noise, dust and road damage
caused by the construction activities. Such construction projects often creat excessive noise
which is a nuisance to the surrounding community. For instance the findings by the study of
Cheuk (2000), are indicating that the noise from the construction site would influence the
resident’s frequency hearing, distractibility and several perceived behaviors.
2.8.2 Impact of construction activities on the Society
Urban infrastructure project have broad and long term social impacts .construction
operation consumes energy, creates substantial noise and produces large quantity of waste
(Gambetese, 2009). Civil infrastructure system is a major consumer of raw materials and
energy. Commercial and residential buildings account for around 40% of global raw
materials consumed per year (U.S Green Building Council,2005). In addition it may affect
the community grows and community demographics (Forkenbrock et al., 2001), and change
the land use pattern (Wegener, 2004). It may replace some of the residents near the
construction site (Tilt et al.,2009) and also brings about inconvenience of the community
nearby ( Roberts ,1995,Zhang,2011).construction workers safety and healthy play a major
role in achieving sustainably socio economic development in the construction industry
(Gambetese, 2009)
2.9 Identification of Environmental Impacts of Construction Activities
According to Chen et al. (2000), sources of pollution and hazards from construction
activities can be divided into seven major types: dust, harmful gases, noises, solid and liquid
wastes, fallen objects, ground movements and others. Chen et al. (2005) considered
construction impacts under eight categories: soil and ground contamination, Underground
water contamination, construction and demolition waste, noise and vibration, dust,
hazardous emissions and odors, wildlife and natural features impacts and archaeology
impacts. On the other hand, Cole (2000) stated that the environmental impacts of the
construction process embrace resource uses, ecological loadings and human health issues.
March (1992) observed the construction industry’s environmental impacts under the
categories of ecology, landscape, traffic, water, energy, timber consumption, noise, dust,
sewage, and Health and safety hazards. Shen and Tam (2002) classified construction
environmental impacts as the extraction of environmental resources such as fossil fuels and
minerals; extending consumption of generic resources namely: land, water, air, and energy;
the production of waste that require the consumption of land for disposal; and pollution of
the living environment with noise, odours, dust, vibrations, chemical and particulate
emissions,

and solid and sanitary waste. According to Cardoso (2005), typical negative impacts of the
construction activities Include waste production, mud, dust, soil and water contamination
and damage to public drainage systems, destruction of plants, visual impact, noise, traffic
increase and parking space shortage and damage to public space. (cardoso, 2005)
From the review above, it is apparent that there is no single approach regarding the
environmental impacts associated with the construction process in the literature. Eco-
Management and Audit Scheme (EMAS) Regulation (Gangollels, n.d.) provides a
standardized and comprehensive list of environmental aspects covering almost all the
previous mentioned environmental aspects. So finally, guidance provided in EMAS
regulation was
used to initially identify generic environmental impacts: (1) emissions to air, (2) releases to
water, (3) avoidance, recycling, reuse, transportation and disposal of solid and other wastes,
particularly hazardous wastes, (4) use and Contamination of land, (5) use of natural
resources and raw materials (including energy), (6) local issues (noise,Vibration, odor, dust,
visual appearance, etc.), (7) transport issues, (8) risks of environmental accidents and
impacts arising, or likely to arise, as consequences of incidents, accidents and potential
emergency situations and (9) effects on biodiversity. However, environmental impacts
coming from EMAS regulation had to be customized to the construction processes and for
this reason an exhaustive preliminary analysis with a process oriented Approach
(Zobel&Burman, 2004) was carried out.
Generally, all major stakeholders agreed that the top ten most important environmental
impacts of Construction activities in Ethiopia are:
• Raw materials consumptionAnalyzed for the entire construction process
• Vegetation removal
• Interference with the ecosystem
• Water consumption
• Electricity consumption
• Loss of edaphic soil
• dust generation from machinery
• Ordinary waste
• Fuel consumption
Based on the different groups of environmental impacts, the respondents generally agreed
that the top three groups of impacts are:
• Resource consumption
• Effects on biodiversity
• Local issues

The following discussion is focused on the nine groups of environmental impacts in

descending order of their ranking.
2.9.1 Resource consumption
The resource consumption group of environmental impacts was ranked highest by all the
respondents put together. Raw materials consumption was determined by all respondents
under the resource consumption group of environmental impacts as the first major
environmental impact of construction activities in Ethiopia. It is encouraging to note that
contractors and consultants interviewed also admitted that raw materials consumption is the
most important environmental impact. The world watch institute (2003) opined that
building construction
Consumes 40 percent of the world’s raw stones, gravel and sand and 25 percent of the
virgin wood per year. It also consumes 40 percent of the energy and 16 percent of water
annually. Water, electricity and fuel consumption which are all under the resource
consumption group of environmental impacts were ranked within the top ten most important
environmental impacts of construction activities inEthiopia.
2.9.2 Effects on biodiversity
The effects on biodiversity group were ranked the second most important environmental
impact of construction activities by the three groups of respondents. Vegetation removal,
interference with the ecosystem and loss of edaphic soil which are all under the effects on
biodiversity group of environmental impacts were also ranked within the top ten most
important environmental impacts of construction activities inEthiopia. This was also
Corroborated by the contractors and consultants interviewed.
2.9.3 Local issues
Architects, Quantity surveyors, and Structural engineers together ranked local issues group
as the third most crucial environmental impact of construction activities with the relative
importance index of 0.932, 0.933, and 0.800 respectively. Within this group, Architects
ranked noise and vibration generation as the most important Environmental impact of
construction activities. Quantity surveyors as well as Structural engineers also ranked Noise
and vibration generation as the most important. This result may be due to the personal
experience of the respondents in their day to day activities. There is also abundant evidence
to support the assertion that construction activities generate dust, noise and vibration.
2.9.4 Transport issues
Transport issues as an environmental impact group was ranked the fourth most important
environmental impact of construction activities by the three groups of respondents. Within
this group, architects and quantity surveyors agreed that interference in road traffic was the
most important environmental impact of construction activities. On the other hand,
Structural engineers ranked road traffic the most important factor. It is imperative to also

note that contractors and consultants interviewed raised the issue of road traffic but
attributed it by and large to road construction.
2.9.5 Waste generation
Architects, quantity surveyors, and structural engineers together ranked waste generation as
the fifth most essential environmental impact of construction activities with relative
importance
Index of 0.896, 0.883, and 0.850 respectively. Within this group, architects and Structural
engineers ranked ordinary waste as the most important environmental impact of
construction activities. Quantity surveyors on the other hand ranked inert waste as the most
important. According to Ofori and Chan (1998) majority of the wastes generated from
construction activities resulted from the production, transportation and the use of materials.
A study conducted by Teo and Loosemore (2001) also posited that construction activities
contributes approximately 29 percent of waste in the USA, more than 50 percent in the UK
and 20-30 percent in Australia to the overall landfill volume.
However, Sterner (2002) stated that implementing a waste management plan during the
planning and design stages can reduce waste on-site by 15 percent, with 43 percent less
waste going to the landfill through recycling, and it delivers cost savings of up to 50 percent
on waste handling.
2.9.6 Atmospheric emissions
The atmospheric emissions group of environmental impacts was ranked sixth by all the
respondents. Architects, Quantity Surveyors and Structural Engineers all agreed that within
the atmospheric emissions group of environmental impact of construction activities,
emissions of volatile organic compounds (VOCs) and chlorofluorocarbons (CFCs) was a
major environmental impact. According to Levin (1997), in the USA Construction is
responsible for 40 percent of atmospheric emissions. The emissions include some toxic
substances such as nitrogen and sulphuric oxides. They are released during the production
and transportation of materials as well as from site activities and have caused serious threat
to the natural environment (Spence &
Mulligan, 1995; Ofori& Chan, 1998; Rohracher, 2001). Other harmful materials, such as
chlorofluorocarbons (CFCs), are used in insulation, air conditioning, refrigeration plants
and fire-fighting systems and have seriously depleted the ozone layer (Clough, 1994;
Langford et al., 1999).
2.9.7 Accidents and incidents
Accidents and incidents as an environmental impact group was ranked the seventh most
important environmental Impact of construction activities by the three parties put together.
Within this group, architects and quantity Surveyors agreed that fire outbreak was the most
important environmental impact of construction activities. On the other hand, Structural
engineers’ ranked breakage of service pipes as the most important factor. Some

Contractors and consultants interviewed also raised the issue of building collapse in the
course of construction as Part of accidents and incidents.
2.9.8 Soil alteration
The three groups of respondents together ranked soil alteration as the eighth most essential
environmental impact of construction activities. Soil alteration as an environmental impact
group was ranked relatively low. All parties agreed that land occupancy was the most
important factor in this category.
2.9.9 Water emissions
The water emissions group was ranked the lowest by the three groups of respondents.
Regarding all the factors in the group, all three parties ranked water from excavation high.
As indicated by the respondents, water emissions from construction activities do not impact
the environment so much in Ethiopia
2.9.10 Degree of agreement
To determine whether there is a significant degree of agreement among the 3 groups

(architects, quantity Surveyors and structural engineers) Kendall's coefficient of
concordance is used as a measure of agreement among raters.
H0: There is no significant degree of agreement among Architects, Quantity surveyors and
Structural Engineers.
H1: There is a significant degree of agreement among Architects, Quantity surveyors and
Structural Engineers.
For all the environmental impact groups, the p-values (Sig.) are greater than ά = 0.05 (ά is
the level of Significance), the null hypothesis, H0, is rejected. Thus, it can be said that there
is a sufficient evidence to Support the alternative hypothesis, H1. Therefore, there is a
significant degree of agreement among the Architects, Quantity Surveyors and Structural
Engineers regarding the environmental impacts of construction activities inEthiopia.
The Kruskal-Wallis (KW) test was used to validate the result of the Kendall's coefficient of
Concordance test. KW test is a statistical test that is used to compare the ranks means
between two or smore samples. This test is used in order to check out if there are any
significant differences in the point of view of the respondents (Architects, Quantity
Surveyors and Structural Engineers) regarding the levels of each of the environmental
impacts of construction activities. There is no significant difference between the responses
of the Architects, Quantity.

2.10 Overview of EIA system in ethiopia
2.10.1 Approaches taken in developing the EIA system
The EIA Procedural Guideline is derived from a range of other sources and has been
adapted, where appropriate, to suit the environmental and social situation of the country. As
mentioned in the introductory part of this paper, however, the primary source is the
Environmental Policy of Ethiopia. (Adugna Feyissa Gubena, Vol.6, Nov.1, 2016)
Most of the issues which are raised in establishing the mechanism for the effective
implementation of the EIA procedure in the development projects of all sectors are
essentially similar. For this reason one set of procedures has been prepared which is
relevant to all development projects. But the proposed procedure does not show detailed
aspects of technical issues that are pertinent to projects in particular sectors. Such details
have been covered in technical guidelines specific to the sectors. (Adugna Feyissa Gubena,
Vol.6, Nov.1, 2016)
2.10.2 Application of the proposed procedure
The prepared Procedural Guideline is applied only to those projects whose location, nature
or scale means that they are likely to have significant impact, not to every small-scale
development project. In this regard, therefore it is believed that the prepared procedure is
simple and does not create bureaucratic obstacles to progress but is making a positive
contribution to development by ensuring that those development schemes that go ahead will
be healthy, acceptable and successful. (Adugna Feyissa Gubena, Vol.6, Nov.1, 2016)
As addressed in the Procedural Guideline, smaller projects will only require an EIA study if
their impact is likely to be significant by virtue of their location or other special feature (e.g.
a scheme with a dam and reservoir is more likely to require an EIA than a run of river
scheme). (Adugna Feyissa Gubena, Vol.6, Nov.1, 2016)
According to the proposal, the project proponent (developer) is responsible for undertaking
an 'Initial Environmental Examination' (IEE) in order to determine whether or not a given
project requires full EIA. The IEE report would have importance in setting out relevant
details of the project (location, size of the project, likely impacts and proposed mitigation
measures etc). On the basis of the IEE report, the Competent Agency (e.g.EPA) will
approve the project (with conditions if considered necessary), request a full EIA study, or
reject the project outright. (Adugna Feyissa Gubena, Vol.6, Nov.1, 2016)
The EPA can assist developers in addressing environmental issues related to development
projects and in meeting environmental impact assessment requirements by preparing
sectoral EIA guidelines that provide relevant information and making them available to the
developers. (Adugna Feyissa Gubena, Vol.6, Nov.1, 2016)

2.11 Status of the EIA System and Key Issues Raised In the Procedure
With its limited experience with initiating and completing environmental impact assessment
studies of development projects, the EPA also has only very recent experience on the
establishment of the EIA system (Procedural and Sectorial Guidelines). The proposed EIA
system is at a draft level and is expected to be refined by the input of comments and/or
suggestions from different stakeholders.
The draft EIA Procedural Guideline raises a number of fundamental questions regarding the
development of EIA procedures in Ethiopia, such as the stage in the project cycle at which
EIA should be introduced, the need for giving opportunities for the public to participate on
EIAs, and the institutional arrangements for their implementation. Proposals have been
formulated for these elements and are briefly discussed in the EIA Procedural Guideline
document. A brief discussion of these elements is in the section of this paper which
addresses some of the important aspects of the Procedural Guideline. In the Guideline there
is also a recommendation for developing some outlines for EIA procedures which include
an Initial Environmental Examination (IEE) for categorization of projects which require
EIA. The scope of EIA procedures is also presented. As briefly discussed in the document,
the main purpose of the procedure is to guide the developer, competent agency’s (EPA at
the federal level and environmental agencies at the regions) and other stakeholders through
the EIA process.
Sectorial Guidelines (e.g. Agriculture, Industry and Transport) contain in great detail
technical aspects that are pertinent to projects in particular sectors. These sectorial
guidelines will benefit the developer and the country by steering the projects into
sustainable development and by avoiding the careless use and destruction of Ethiopia's
fragile environment and precious natural resources on which present and future generations
depend.
However, this draft EIA system in Ethiopia is not yet legally binding and is used on a
voluntary basis. It is hoped that after experience is gained in implementing the EIA, the EIA
system will be formalized by way of backing it with the necessary legislation and
regulations. To this effect, the Environmental Policy of Ethiopia has already been adopted
and the preparation of a framework environmental law is under way.
2.12 Some of the Important Aspects (Elements) Of EIA Procedural Guidelines
2.12.1 EIA procedures and the project cycle
In the proposed guideline it is suggested that the environmental consequences of a proposed

project should be recognized early in the project cycle since this makes it easier and less
costly to expand, reject or sustainably modify the proposal. As projects pass through
successive stages of the cycle and are not 'rejected' however, it is proposed that their
scrutiny should go into more detail. In this aspect the draft EIA system has recommended an
element of monitoring of the actual environmental impact of a project once implementation
takes place in order to check that:

 There has been compliance with environmental standards;

 Mitigation measures have been implemented; and
 No unexpected impacts have arisen.

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter deals with the methodology used in conducting the research. The chapter
focuses on how data was collected and used. Research methodology is a means of carefully
finding solutions to the research problem. It defines how a research will be done
scientifically. Within a research methodology, we discover the different steps that a
researcher employs, research problems, along with the logic behind them. This is a very
essential part of a research and serves as a map for solutions to a research problem. This
study started with problem identification. For an in depth understanding we collected data by
using both primary and secondary source of data.
3.2 Study period
We have studied this research in period of two month and two weeks.
3.3 Design of study

The study made use of descriptive survey, designed to assess the contribution of the
construction sector for the national socioeconomic development (socioeconomic impact) in
wolkite university. A survey research is well suited to descriptive studies of this nature where
researchers want to look at relationships between variables occurring in particular real life
contexts. A descriptive survey is aimed at describing, observing and documenting
aspects of a situation as it naturally occurs rather than explaining them. It is therefore
appropriate when a researcher attempts to describe some aspects of a population by
selecting unaided, samples of individuals who are asked to complete questionnaires. It is
concerned with the conditions or relationship that exists, such as prevailing practices,
conditions and attitudes, processes that are happening, opinions held; or developing trends.
Descriptive survey design was an ideal one for this study which seeks to identify the
contribution of construction projects to the zonal development and seeks to identify the
negative and positive impacts of construction projects and identifies way to reduce the
negative impact with respect to social and economic aspects to the environment, that is
examining the negative impacts and giving a mitigating measure in order to solve the
problems.
3.4 data collection method

This study started with problem identification .For clearly to understanding; we collected our
data by using both primary and secondary data.
The Primary source of data for the study will be obtained through distribution of
questioners to professional (consultants), contractors and owners involved in the building
construction. The make interview and prepare questioners are necessary ways of primary
source data collection techniques to evaluate, identify and predict the contribution and share

of the building construction project to zonal development with respect to socio –economic
and political impact.
Secondary source is one of data collection techniques which focused on data was collected
former .the data may be available in different forms such as report, journals, research etc.
This data includes data collected from different books and website.
3.5 Data collection instrument

Questionnaire, interview and observation were the main data collection instrument used for
this study. Questionnaires provide a tool for get/eliciting information which one can tabulate
and analyse. Questionnaire was appropriate because, it was assumed that, the targeted
populations were literates/able to read. The questionnaire used was open ended questions. It
targeted client, consultant office and contactor for the questionnaire and some site engineer
for interview
3.6 Study area

The study are scoped to wolkite town , which are found in southern nation and
nationality .As well as we scoped this study on Wolkite university campus that also found in
Wolkite zone
3.7 Sample Size and Sampling Procedures
Sampling is the act, process or technique of selecting a suitable sample or a representative

part of population for the purpose of determining parameters or characteristics of the
population. In case our project we use random type sampling techniques
3.8 Research procedure
Introduction
Literature
review
Primary source
Methodology
Secondary source
Result and
discussion
Conclusion and
recommendation

3.9 Data process and analysis
Data processing is simply the conversion of row data to meaning full information through
process. Simple statistical analysis involving tables, rankings and percentages is used in
analysing the results from the questionnaire by using excel software.

CHAPTER FOUR
DATA ANALYSIS, RESULTS AND DISCUSSION
4.1 Introduction
The analysis of the research is carried out by data collected from the construction site,
information gathered through questioners and observation on building construction sites and
also observation from existing environment. The questionnaires are collected from 25
building projects.
As the construction projects contribute for the development of a community it have also
socio-economic impacts to the environment. The socio-economic impacts are classified in
to positive and negative impacts to the environment. The positive impacts are taken as the
contribution for the zonal development and the negative impacts need mitigation measure to
reduce its impact on the environment..
Table 4.1 numbers and percentage of questionnaire disturbed, returned and well
completed
Number of consultant & Owner/client Total

questionnaire contractor percentage%
No % no %
Distributed to 25 71.428 10 28.571 100
Returned from 21 59.999 8 22.856 82.855
Well completed 19 54.284 8 22.856 77.14
4.2 Contribution to employment

The role of the building construction industry in terms of creating employment job
opportunities especially in urban areas is becoming visible. As it visible from above table
analyzed 100 % of respondents give information as building construction creates job
opportunities for local community. We can understood also as those 100% construction
projects based on fair during creating job opportunity for skilled employee. Not only during
construction phase also during building give service/operating ,the employee become
beneficiary by give service like guard and waitress. According to (Wagaye Tefera,
December, 2014) in the 1999 E.C Labour Force Survey (LFS), of the total employed persons
in the country which was estimated at around 25 million, 0.9 percent was estimated to be in
the construction industry. The contribution of the industry in terms of creating employment

has slightly improved over the years. Also in 2005 LFS, of the total employed population in
the country (31.4 million), 1.4 percent was estimated to be in the construction industry. This
shows as from year to year the number of employed persons in the construction industry is
increases. From this we understand construction industry have great contribution to zonal
development.
Table 4.2 building construction project contribution for employer
Types of employee Average number of

employee
Daily Labor 40
Mason Man 10
Carpenter 14
Administrator 1
Finance 1
Store Keeper 2
Gang Chief 2
Project Manager 1
Site Engineer 1
Office Engineer 1
Quantity Surveyor 0
General Forman 1
Assistance Forman 2

Figure 4.1 contribution of building construction project to employer
The chart shows the average number of employer participated in Wolkite town and wolkite
university building construction project those employers can be classified in to three group’s
namely unskilled or daily labour, technical staff and semi-skilled. From this we understand
that building construction project have its own goal to reduce poverty by raising standard of
living and quality of life of the people by participating unemployed in the construction. From
the table of analysis we also understood as 100% of building construction projects have role
to raising life standard of society. This is also one of the contributions of building
construction project to the zonal development of economy because it reduces poverty when
unemployed have chance to participate in construction.
4.3 Contribution to government revenue

The construction industry also contributes to the generation of revenue for the government.
The rental income tax is one of the major revenue sources within the construction industry to
the government. According to (Ethiopian economic report 2006/07) the rental income tax
which was Birr 15.2 million in 1997/98 has increased to Birr 78.3 million in 2004/05 but
lowered to Birr 32 million in 2005/06 generating nearly half a percentage point of the total
government revenue in the period 1997/98- 2005/06.
Table 4.3 Revenue sources from construction project to the government
No Revenue source Contractors that

generate tax on
average
1 Corporate income taxes of 5
companies

2 Rental income 16
3 Sales tax 4
4 Capital gain tax 10
5 Employees income tax 13
Figure 4.2 pie chart on the revenue sources from construction project from the
government
As we have found the contribution of construction project for the development of a zonal, the
building construction projects plays a vital role and have its own contribution to the zonal
development. And also construction projects contributes its own share for improving and
solving problems which is related with infrastructures such as road construction, Railway
construction, Dam construction, And building construction projects for a given country. In
our case in Wolkite town and university construction projects were playing a vital role in
fulfilling the important infrastructures that are required for educational institutes such
economics, ICT, laboratory and administration construction building are the main projects
that were undergoing in the campus. Hence those projects that are listed were expected in
solving problems related to absence of those listed construction projects.
4.4 contribution to community around site

As information from Questionnaire indicates building construction company participated in
voluntarism activities like supply potable water for local community when suddenly
shortage of water occurs. And also sometimes they engage themselves in interest to
destroy/clean bush/obstacle around community environment without any payment.

4.5 Environment impact assessment

According to (Tesfaye Abate Abebe, report 2012) EIA in Ethiopia it is mentioned that about
the meaning of EIA is Production activities in any industry may “harm the environment
through their damaging effects on air, water, soil and biodiversity.”
To protect the environment, it is imperative to conduct environmental impact assessment

(“EIA”) of investment projects in order to identify their potential harms. As we informed
from our questionnaire respondents, 93.103% of building construction company where follow
environmental impact assessment (EIA) while 6.896% of construction company does not
done.
In this way, EIA helps to enforce environmental standards and certification processes, which
can potentially induce investors “to turn to more environmentally friendly production
methods and practices. “Monitoring the implementation of licensed projects is also
essential to ensure that projects are implemented in accordance with the standards and
conditions, and to make sure there are no circumstances that may have been unforeseen at the
time of impact assessment. “Environmental impact assessment,” or sometimes simply
“environmental assessment,” refers to the determination of the environmental
consequences of proposed projects or activities.
4.6 Environment impact assessment on building construction

EIA is an important management tool to identify the major environmental impacts of
construction projects to improve the effectiveness of environmental management systems.
Prediction of the environmental impacts of construction project before the construction
work, leads to improvements in the environmental performance of construction projects
and sites. A construction project causes great impact on environment. It is necessary to
provide mitigation measures to minimize the fast growing threat of environmental
impacts of building construction projects. Environmental impacts of building construction
activities may vary from country to country.
Major environmental impacts of building construction projects are such as:-
 Solid and liquid waste disposal

 Pollution
 Resource use and habitat destruction
 Desertification
 Soil erosion and
 Material wastage etc.
Building construction activity such as use of resources like timber and non- fuel materials etc.
Construction project leads to habitat destruction, loss of arable land, and loss of biodiversity
etc.
Project description

There are different building construction projects which were in progress at Wolkite town
and wolkite university. Those building construction was considered for different purposes.
Some of those building construction projects were administration building, residential
building, ICT building, economics building, commercial building in wolkite town and from
those finished projects that was giving function for the campus were student cafeteria are the
major projects that were under construction and function respectively.
Policy, Legal and Administrative Framework
The Constitution of Ethiopia (August 1995) embodies the right of the Ethiopian
people to development and to live in a clean and healthy environment. The Conservation
Strategy of Ethiopia emphasizes the importance of incorporating environmental issues into
development activities right at the initial stages of development. The Environmental Policy
of Ethiopia (April 1997) aims to “improve and enhance the health and quality of life of all
Ethiopians, to promote sustainable social and economic development through sound
management and use of natural, human-made and cultural resources and their
environment as a whole, so as to meet the needs of the present generation without
compromising the ability of future generations to meet their own needs”. It further
seeks to ensure the empowerment and participation of the people and their organizations at all
levels in environmental management activities, and to raise public awareness and
promote understanding of the essential linkage between environment and development. The
Environmental Policy recognizes the need for environmental impact assessments and
environmental audits in development projects.
4.7 Impact analysis

When we were observing the different construction sites in Wolkite University and wolkite
town, the building construction projects that were on going and functional projects, we
identified the different negative impacts that affect the environment. Some of the impacts that
affect the environment are listed below:-
Table 4.4 sources or causes of impact of construction project on environment
Issue Sources/causes Impact

1. Air  Dust or odors from handling of  Increased health problems

materials including construction relating to dust and vehicle
materials, sewage &waste emissions.
 Earth moving during
construction could be dusty in
dry climate and affects
neighboring habitats and
residents.
 disturbance of settlement
 From discharge of sewage or other  Pollute the environment by

effluents to water or the land creating bad smell
2. water and  The agreement was not follow
land all the process under EIA
 Land purchase agreement
 From operation of equipment e.g.  Health problems related with

crushers hearing
3. Noise  From construction  Problems related with learning
and teaching condition
 Affect the environment or

human health, or carry disease
which can be passed on human
contact with contaminated
4. Solid and material.
liquid waste  Construction wastes  There are many chemicals used
during construction process
 Solid and liquid waste collection some of which are harmful to
/disposal both contract workers and
surrounding environment if not
handled correctly.
 Reducing the income of land

5.Vegetation  Destruction of tree. owner.

 Creates the soil erosion.
4.7.1 Positive impacts

 Increase the life standard quality of society
 Increase government income tax directly and indirectly.
 Infrastructure development for the society
 Increase the income of the society by creating job opportunity
 Increase the acceptance capacity of the university for new entry students
4.7.2 Negative impact
4.7.2.1 Soil erosion

Soil erosion is occurs when natural vegetation that held the soil in position and protect it from
any erosion and sliding are destroyed. So as we informed from questionnaire respondents
96.55% of building Construction Company does not willing to replace the any vegetation
which destroyed due to construction case. This destroyed of vegetation also has effects on
health because decreasing of plant make shortage of oxygen.
4.7.2.2 Local issues

In local issues noise and vibration generation as the most important Environmental impact of
construction activities. Among the questionnaire respondents, 100% of building Construction
Company are believed as noise generated from their building during construction phase
disturbed neighbouring. Most of Construction Company are far from urban so they dot make
harm due to noise of their construction because of no more person live around site.
4.7.2.3 Transport issues

Transport issues as an environmental impact group was ranked as most important
environmental impact of construction activities by the two groups (contractor and
consultant)of respondents. Within this group, contractor and consultant agreed that
interference in road traffic was the most important environmental impact of construction
activities. Among questionnaire respondents, 86.2% of respondents (contractor &consultant)
explain as machinery and other heavy equipment’s leads delay of other vehicle during
transportation. Building Construction Company also make obstacle by store building
materials like sand and gravels which may leads accidents.
4.7.2.4 Resource consumption

The resource consumption group of environmental impacts was ranked highest by all the
respondents put together. Raw materials consumption was determined by all respondents
under the resource consumption group of environmental impacts as the first major
environmental impact of construction activities. It is encouraging to note that contractors and
consultants interviewed also admitted that raw materials consumption is the most important
environmental impact.

Consumes 40 percent of the world’s raw stones, gravel and sand and 25 percent of the virgin
wood per year. It also consumes 40 percent of the energy and 16 percent of water annually.
Water, electricity and fuel consumption which are all under the resource consumption group
of environmental impacts were ranked within the most important environmental impacts of
construction activities and through questionnaire respondents 100% of natural resource like
gravel and sand are obtained from local resource.
4.7.2.5 Construction materials wastage and Waste generation

The wastage of construction material like corrugate iron sheet, nails, concrete and wastage of
scaffolding didn’t always disposed in to place that do not harm the available community.
Solid and liquid wastes from the student cafeteria also had no proper storage area it was
simply disposed into the land which have health problem to the environment. This must be
considered as negative impact of building construction project. Ordinary waste as the most
important environmental impact of construction activities. According to be informed from
questionnaire respondents majority of the wastes generated from construction activities
resulted from the production, transportation and the use of materials are does not disposed in
area which not harm the health of community.
4.8 way to reduce negative impact of building construction on environment

Table 4.5 mitigation measures for the identified negative impact
Impact Mitigation
 Dust produced during excavation  Dust emissions Sprinkling the site with
 ,unloading building materials and water
movement of equipment’s  Minimize wind-blown dust during the
construction phase, for example regular
watering specially during dry condition
 Cover construction materials that are
being transported or stored to limit dust
 Installation of temporary latrine/toilet

facilities for workers
 Solid and liquid waste generated during  Provision of receptacles for collection
building operated, Construction of food waste generated by workers
materials wastage and during  Separation of construction wastes in to
construction phase. streams that can be reused and those
that requires disposal
 Design or install, implement and
maintain effective pollution prevention
measures

 Solid waste should be properly stored

and collected, for disposal at approved
 Solid and liquid wastes from existing disposal facilities
building example hotels and student  Should not be stored on field or land
cafeteria affecting the health of the for long period of time
environment.  Proper land fill should be provided for
the solid wastes generated from the
student cafeteria
 Proper septic tank should be provided
for the liquid waste generated from
student cafeteria.
 Destruction of plant due to construction  Replacing or replant the others plant as

case. much as possible.
 Noise due to construction  Use sound absorbing material

 Add noise barriers
 Choose less noisy equipment
 Offer personal hearing protection for
workers

CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions
The building construction projects are provides a very important contribution to the
zonal/local economy through its job generating ability for unskilled, semi-skilled and skilled
Labour. The construction process needs inputs from other industries and production factors
(Labour, land and capital). This could generate considerable employment through multiplier
effects. Building Construction project have its own goal to reduce poverty by raising standard
of living and quality of life of the people by participating unemployed in the construction.
The building construction projects creates job opportunities for employee.
The building construction projects also contributes to the income tax for the government that
bases for zonal development. The rental income tax is one of the major income sources
within the building construction industry to the government. The building construction
projects contributes its own share for improving and solving problems which is related with
public service like infrastructures such as road high school and hospital.
Building Construction sector and construction activities are considered to be one of the major
sources of economic growth, development and economic activities. Considering the
significance of the construction sector, it is necessary to identify the major issues affecting
the efficiency of the sector and take corrective action for increase in economic growth and
development of our country. In a global perspective, land filling remains the predominant
option for solid waste management. Active land filling technologies and extensive measures
have been implement, monitor emissions and reduce impacts to the environment.
The wastage of construction material like corrugate iron sheet, nails, concrete and wastage of
scaffolding didn’t always disposed in to place that do not harm the available community.
Solid and liquid wastes from the student cafeteria also had no proper storage area it was
simply disposed into the land which have health problem to the environment. This must be
considered as negative impact of building construction project. During construction phase of
building construction project, the heavy machinery and other equipment’s those transported
building materials cause delay of other vehicle which serve as passenger of community by
make interference of road. More of contractor are stored some building materials such as
aggregate and sand on the traffic way which also make interference of road and may leads
accidents.
Building construction activities also consumed natural resource like aggregate, sand, timber
and water. The 96.55% of building construction company informed as not vegetation
removed/destroyed due building construction case did not replanted or replaced. But this
destroyed of natural plant and aggregate can leads soil erosion and also make scarcity of
oxygen due to shortage of plant which generated it. During construction phase the noise
produced from activities like vibration, sound of machine and generator disturbed the
available neighbouring which may cause hearing problem and in wolkite university case it

causes problem in learning and teaching process. The dusts raised during excavation also
cause problem of breathing system and eye pain. But to encourage the positive
impact/contribution of building construction projects and overcoming/reduce the negative
side of building construction on environment, the Environment Impact Assessment should be
well implemented.
5.2 Recommendations
 Creation and maintenance of ecofriendly and sustainability is a future
consideration of Environment to save the resources, environmental quality
and human health also. So every developmental projects need an effective EIA
preparation as well as existing projects also must need to maintenance the
environmental quality by properly doing of environmental monitoring program
and also good Environmental management plan (EMP) is needed to ensure the
mitigation measures specified in the EIA report.
 . Many of building Construction Company are storing building construction
materials like sand and aggregate on the road that interference the movement of
vehicle and May leads accident.so any construction company should be store
construction materials far from road as much as possible.
 Many building give service before construction phase already not finished. The
ground floor operating during others floor on construction progress. In this case
the building materials may fall from floor and injuries a person. So EIA should be
strictly avoided such like construction.
 All the required mitigation measures suggested in the EIA report along with the
emergency response plan are to be strictly implemented and kept operative
/functioning on a continuous basis.
 Compensation for any sort of activity which will incur damage or loss of public or
private property or any natural resources shall be addressed as per government of
Ethiopia rules & regulations.
 The university must provide land filling, because it remains the predominant
option for solid waste management. Active land filling technologies and extensive
measures have been implementing, to monitor emissions and reduce impacts to
the environment.
 Proper septic tank should be provided for the liquid waste generated from student
cafeteria From source of waste to septic tank location it is better to provide box
culvert for liquid waste, because it had bad smell which damages the health of
student and workers in the university.
 Solid and liquid waste from existing building and ongoing project should not be
stored on field or land for long period of time.
 Dust or odors from handling of materials including construction materials, sewage
& waste for Dust emissions Sprinkling the site with water and Cover
construction materials that are being transported or stored to limit dust

 For any purchase agreement and destruction of plant for construction activities or
for any other purpose from the owner of equipment or good, the compensation
payment process must be taken place by the EIA team or EIA committee
 Building Construction industry must contribute to the government for generation
of income tax to the zonal development.
 The construction project must create employment opportunities for the project
area peoples in order to reduce poverty by raising standard of living and quality of
the life of the people when they participate in the construction project the number
of unemployment rate is decrease

REFERENCES
 1999 Labor Force Survey (LFS)

 .E. Ethiopian, The Current State of The Construction Industry, Volume VI
2006/07. International Standards Industrial Classification (ISIC)
 Wells J, The Construction Industry in Developing Countries: Alternative
Strategies for Development, Croom Helm Ltd, UK, 2008.
 Adugna Feyissa Gubena, " A General Review of History, Transformation and
Challenges Hindering Full Implementation.," Environmental Impact Assessment in
Ethiopia, Vol.6, Nov.1, 2016.U.S Green Building Council,2005
 Forkenbrock et al., 2001 "Assessing the Social and Economic Effects of
Transportation Projects"
 Ministry Of Works, Construction Industry Policy November, 2009
 U.S Green Building Council,2005

 Tesfaye Abate Abebe, Environmental Impact Assessment And Monitoring Under
Ethiopian Law,2012
 Wagaye Tefera, December, 2014 Building Construction Productivity of Labour
Improvement Model Designing for Defense Construction Enterprise Addis Ababa
university.
 B. e. al, "Environmental deterioration has captured the world’s attention and has
been one of the most discussed subjects locally, nationally and globally," 2002.
[Online]. Available: Environmental deterioration has captured the world’s attention
and has been one of the most discussed subjects locally, nationally and globally.
 cardoso, "typical negative impact of the construction activity includes waste
production,mud,dust,soil and water contamination and damage to public drainage
system etc.," 2005. [Online].
 Cheuk, F. N. (2000). Effects of building construction noise on residents.
 Guggemos, A. (2006). decision support tool for assiessing the inviromental effect
of construction commercial building
 Ganesan, S. (2011). Employment, Technology and Construction Development.
Ashgate, UK

ANNEX
APPENDIX 1 Questionnaire for consultant and contractor respondents

We are currently undertaking a Bachelor of Science degree in construction technology &
management from Wolkite University. So for this success, we are required to do a BSc
Research on Assessment of the contribution of the construction sector for the national
socioeconomic development (socioeconomic impact)
Please give few minutes for us to response the following questions either by putting an “X”
marks at your choice rectangle shown for questions having choice or by writing your
answers in the space provided.
Background of organization
Name of company____________________________________________
Level of contractor____________________________________________
Level of consultant____________________________________________
1. Does your building construction project create a job opportunity for the local
society for managerial level, daily labor, guard and others?
Yes No
2. Did your construction company paid for natural resource like gravel and sand
that obtained from local resource?
Yes No
3. Does your construction company replant any vegetation which destructed due to
construction of project?
Yes No
4. Does your construction project company provide any income tax to the
government?
Yes No

 If your answer is yes for the above question your construction project
contributes to economic activity through generation of revenue for
government from:
Corporate income taxes of companies
The rental income
Sales tax
Capital gain tax
Employees income tax from those employed in the construction project
5. Does your construction project have its own goal to reduce poverty by raising
standard of living and quality of life of the people by participating unemployed
in the construction work?
Yes No
6. Does your construction project follow the construction industry policy for
development of your Construction Company and contribution to Zonal
development?
Yes No
7. Does your construction project have noise related impacts to the environment
when the construction, demolishing and operational activities or tasks done?
Yes No
 If your answer is yes for the above question what measures do you take to
reduce /overcome this problem?
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
________________________
8. Does your construction project produce dust and odor which is harmful to the
environment?
Yes No

 If your answer is yes for the above question what is your measure to reduce the
problem?
____________________________________________________________________
____________________________________________________________________
________________
9. Did your company follow the environmental impact assessment policy?
Yes No
 If your answer is no how about your future aim to follow the environmental
impact assessment policy
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
________________________
10. Did your company undertake environmental impact assessment before starting
construction project?
Yes No
11. Does your construction company dispose waste of construction materials in to

place that do not exposed community for harmful?
Yes No
12. Did your plant and others construction equipment cause delay of other traffic
vehicle during transportation as well as construction phase?
Yes No
13. Did your company consider for maintenance of public road that may deteriorate
due to your plant/equipment’s transportation ?
Yes No

14. what about number of employee participated on your project site daily during
working days?
Categories of employee Numbers of employee
Daily Labour
Mason
Carpenter
Administrator
Financer
Store keeper
Gang chief
Project manager
Site engineer
Office engineer
Quantity surveyor
General foreman
Assistance foreman
15. Does your construction project company pay wage of the employees based on the
current economic situation?
Yes No
16. Does your construction project take care or keep safety for workers to save them
from accidents due to construction case like falling of objects from building and
crushing?

Yes No
17. Did your construction company participated in voluntarism activities?
Yes No
APPENDIX 2 Questionnaire for owner/client respondents

We are currently undertaking a Bachelor of Science degree in construction technology &
management from Wolkite University. So for this success, we are required to do a BSc
Research on Assessment of the contribution of the construction sector for the national
socioeconomic development (socioeconomic impact)
Please give few minutes for us to response the following questions either by putting an “X”
marks at your choice rectangle shown for questions having choice or by writing your
answers in the space provided.
1. Did construction company undertake/constructing your building considers or aware

of road traffic during store building materials such as aggregates, sand and others?
Yes No
2. Did your contractor make fencing around building during construction phase in
order to avoid non workers may enter the site and injuries in construction case?
Yes No
3. Did you consider any fee or compensation if property is destructed due to your
project construction?
Yes No
4. Did your building project make opportunity of job for unemployed during operating
or give service?
Yes No
 If your answer question No 4 is yes, in which way your building make

opportunity for unemployed?

Waitress managerial
Guard cleaner
Others
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
________________________
5. Did liquid and solid waste that displaced from your building project during
operating will affect community health?
Yes No
6. Did you have a plan to benefit the community from your building project?
Yes No
 If your answer is yes in what way are you going to benefit the community
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
________________________


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COLLEGE OF ENGINEERING AND TECHENOLOGY

DEPARTEMENT OF CONSTRACTON TECHENOLOGY AND MANAGEMENT

A THESIS SUBMITTED TO THE DEPARTMENT OF CONSTRUCTION

TITLE: “ASSESSMENT OF THE CONTRIBUTION OF THE CONSTRUCTION SECTOR

GROUP 14 NAME ID.NO

JUNE 16, 2022

Approval for submittal to proposal assessment committe

(Advisor Name) (Date)

Wolkite university Page ii

1. Abel Tekle ____________________

Wolkite university Page iii

Wolkite university Page iv

EIA=environmental impact assessment

EPA=Environmental Protection Authority

GDP=gross domestic product

IEE= Initial Environmental Examination

LFS=Labour Force Survey

EMAS=Eco-Management and Audit Scheme

GFCF=Gross Fixed Capital Formation

Wolkite university Page v

Wolkite university Page vi

List of table ........................................................................................................................... x

Table 4.3 Revenue sources from construction project to the government………………...…33

List of figure ......................................................................................................................... x

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

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

1.2 Statement of the problem ......................................................................................... 1

1.3 Research Questions.................................................................................................. 2

1.4 Objectives of the study ............................................................................................ 2

1.5 Significance of the Study ......................................................................................... 3

1.6 Scope of the Study ................................................................................................... 3

1.7 Limitations .............................................................................................................. 3

CHAPTER TWO .................................................................................................................. 4

LITERATURE REVIEW .................................................................................................. 4

2.1 Definition of the Construction Industry .................................................................... 4

2.2 Construction Industry and National Development .................................................... 4

2.3 Government Initiatives in the Development of the Construction Industry ................. 5

2.5 The role of the construction industry in an economic ............................................... 6

2.7 Contribution of the Construction Industry to the Economy....................................... 8

2.8 environmental and social impact of building construction project ............................ 8

Wolkite university Page vii

2.9 Identification of Environmental Impacts of Construction Activities ....................... 11

2.10 Overview of EIA system in ethiopia .................................................................... 16

RESEARCH METHODOLOGY ..................................................................................... 19

3.1 Introduction ........................................................................................................... 19

3.2 Study period .......................................................................................................... 19

3.3 Design of study...................................................................................................... 19

3.4 data collection method ........................................................................................... 19

3.5 Data collection instrument ..................................................................................... 20

3.6 Study area.............................................................................................................. 20

3.7 Sample Size and Sampling Procedures................................................................... 20

3.8 Research procedure................................................................................................ 20

3.9 Data process and analysis ...................................................................................... 21

CHAPTER FOUR ............................................................................................................... 22

DATA ANALYSIS, RESULTS AND DISCUSSION ..................................................... 22

4.1 Introduction ........................................................................................................... 22

4.2 Contribution to employment .................................................................................. 22

4.3 Contribution to government revenue ...................................................................... 24

4.4 contribution to community around site ................................................................... 25