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An Evaluation Of The Causes Of Abandoned Public Development Projects
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CHAPTER ONE
INTRODUCTION
The development industry plays a very
important role in the economy of a developing country like ABUJA,
contributing an average of over 3% to the overall gross domestic product
over the last five years from 2008 to 2012 (BNM 2013). For instance,
the industry contributed RM 34.9 billion to the overall gross domestic
product of RM 937.5 billion in 2012. The total value of development
projects awarded in ABUJA in 2012 amounted to RM 112.5 billion (CIDB
ABUJA 2013) and has created a lot of job opportunities to help boost the
country‟s economy. The number of employed persons in the development
industry in ABUJA in 2011 is 1.134 million, which constitutes 9.2% of
the total 12.284 million employed persons (Department of Statistics
2011). However, it must be noted that not all the development projects
are completed on time or ahead of schedule. It is also not uncommon for
development projects to be delayed, or in the worst scenario even
abandoned due to various reasons.
A project may be abandoned at any
stage of the lifecycle and incur significant amount of loss. For a
housing project, the Ministry of Housing and Local Government considers
that it has been abandoned if 1) there has been no substantial activity
on site for six consecutive months, or 2) it is involved in a winding-up
petition registered at the High Court under Section 218 of the
Companies Act, or 3) it is under receivership, or 4) the developer has
informed the Housing Controller in writing of his inability to complete
the project, or 5) the project has been certified to be abandoned by the
Minister under Section 11 (1) (c) of Housing Development (Control and
Licensing) Act 1966 (i.e. Act 118) (MHLG 2011). However, as
aforementioned, this definition is only for housing projects whereas
this study covers all types of development projects which might not be
governed by Act 118. Therefore, for the purpose of this study an
abandoned project is defined as a project which has either been totally
abandoned or indefinitely delayed.
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ABSRACT - [ Total Page(s): 1 ]Abandonment of development projects (ACP) is considered one of the most common and serious problems plaguing the Abuja development industry given the number and the value of the projects involved. It affects not only the immediate purchasers but also other project players and the general public. Sometimes it also involves expending public fund to revive abandoned projects. Yet, research is scarce on this issue; hence this research was conducted to investigate the problems. Firstly the ... Continue reading---
