CHAPTER and boost regional economic integration will have



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Background of the Study

The state of infrastructure in many developing countries tends to be poor and inadequate to meet
the rising demand. This reveals the constraints
that governments in developing countries and especially in Sub-Saharan Africa (SSA), face in terms of scarcity of funds, corruption,
poor planning and project formulation,
as well as inefficient capacities.
To avoid these problems government trying to do in partnership with non –
government organizations. This type of partnerships
many types, based on the exact allocation
of risks and responsibilities (Thomsen,

As a strategy that the Ethiopian
Government pursued
during the First
Growth and
Transformation Plan (GTP I) for the Sustainable Development and Poverty Reduction Program
(SDPRP) was Enhancing expansion
and quality of infrastructure development.
This strategy also emphasizes on Second Growth and Transformation Plan (GTP II) as build the capacity of the domestic construction industry, bridge critical infrastructure gaps with particular focus on ensuring quality provision of infrastructure services. Expansion of infrastructure development such as road, railway, dry port, air transport, energy, telecommunication, water and irrigation schemes which
resulted in attracting investment, creating market opportunities, enhance competitiveness and boost regional economic integration will
have a special consideration
in GTP II (Desie, 2016)

The Ministry of Communications and Information Technology (MCIT) initiatives
programs in Ethiopia, Unified Billing System is a facility for payments of utility bills at one-stop shop electronically. The system will provide unified single payment window to customer, manage the
billing cycle and service center operation electronically, provide
of payment collection for
customer’s convenience (any place, unified) and provide an electronic service to citizens/customers. The system also integrated government agencies (Ethiopian Electric Utility, Addis Ababa Water and Sewerage Authority, Ethio Telecom, Ethiopian Broadcasting Corporation and
AUTHORITY) through
integrated system to attain quality service.

In Public Private Partnership (PPP) with the Ethiopian Ministry of Communication and
Information Technology launched e-Service Centers known
“Lehulu” in Addis
Ababa in February 2013.

The Amharic word “Lehulu” implies a dual meaning, “for everyone” and “for all services.” The
centers are based on a “Build,
Own, Operate, and Transfer” model to deliver bill payment services for five utilities – water, electricity, telephone, annual TV subscription
and traffic penalty – in any
one of the new locations of Addis Ababa .

The main objective of this study is to assess the effect
of Unified Billing System on customer satisfaction service in four Lehulu Centers that provided by Kifiya Financial Technology Plc. This study contributes to customer
satisfaction literature by
providing empirical evidence that increase the body of knowledge in understanding the factors that influence the quality service. Furthermore, the study used to understand factors determining the
service quality of UBS.

                                            Statement of the Problem

According to Stephen, Kenneth & Brain (1999), government have a responsibility to design the
delivery of government services based on the needs of citizens. Citizens want and gave a priority in government services that are easy to find and access. Government must take citizen-centered
approach to service delivery. Citizens want government services that are as accessible, convenient and
seamless as possible. One way of achieving this is through single-window service delivery. –


The essence of the single-window
approach is the bringing together of government services, or information about them, in order to reduce the amount of time and effort citizens must expend to find and obtain the services they need. While single-window service is only one of several approaches to improving service to citizens, it has become an increasingly important one. (Stephen, Kenneth
& Brain, 1999).

Mostly shortage of public funds in most developing countries leads to increasing participation of private sectors, but private sectors are not commonly
volunteer to invest financially on infrastructure
projects in many parts of the world. To increase the
quality of projects, decrease
risks and sustain the profitability the best solution is motivating Public-Private Partnerships (PPP) especially in utilities.

Satisfying customers is the first major mission
and purpose of any business organization. It is when
customers are satisfied that the organizations achieve higher sales, profit and market share and vice versa. Customer satisfaction also leads organizations to gain loyalty and achieve the desired objectives. Therefore, it is essential for organizations to satisfy their customers promptly so that they can achieve what they plan. Utility agencies as a business organization should
provide a great care for its customers’ to attract, retain
gain their loyalty.

Utility companies are not satisfying their customers enough due to many factors in which using
traditional technologies
among them. Levesque and McDougall (1996)
have revealed and reinforced that poor customer experience as a result of poor service quality leads to poor customer satisfaction and this results decreasing in the willingness to
recommend the service.


Customers of the utility agencies have not been satisfying with the service rendered by the agency. This is due to
poor service quality of the agency that results
absence of new and improved technologies. Please explain about the previous service experience

Ministry of Communication and
Information Technology, Electronic Services Initiative i.e., ‘Lehulu’ unified
billing system, has taken up the challenge of bringing about the necessary
changes to provide a better quality of service to citizens. It has undertaken a
number of e-Government assignments to avail government services online and
improve the access to the general public.

The researcher
wants to examine the
contribution of newly introduced Unified Billing
System on customer’s satisfaction
of Bair Dar Lehulu Centers ………………




and the rejection of hypothesis show the significance of the study. The
following are hypothesis of the study.


Reliability has positively significant effect on customer satisfaction

Responsiveness has positively significant effect on customer satisfaction

Assurance has positively significant effect on customer satisfaction

Tangibility has positively significant effect on customer satisfaction

Empathy has positively significant effect
on customer satisfaction



The general objective is to evaluate
the effect of Unified Billing System on customer satisfaction in Bahir Dar Lehulu

 Specific Objectives

The specific objectives
of the study are as follows:

To identify the influence of  reliability on
customer satisfaction

To examine the influence  of assurance on
customer satisfaction

To evaluate the influence of responsiveness
on customer satisfaction

To distinguish the influence of empathy on customer satisfaction

To know  the influence
of tangibility on customer satisfaction

Limitation of the Study

though wide ranges of factors affecting customer satisfaction are expect to be
study, the
constraint of this study has only undertaking to investigate the effect of Unified
Billing System on Customer satisfaction in Bahir Dar Lehulu Centers.
Additionally, there may be information concealing or negligence of the
respondents during filling of the questionnaire. The limited number of domestic
studies on the area and absence of well organized and documented information in
Kifiya will also be the other limitation of study.

1.2    Significant of the study

The outcomes and results
of this research will have potential value to share experience, particularly stakeholders to understand the challenges and opportunities related with adoption
of new technology and its advantages in providing service to their customers. In addition,
this study expected to help other researchers who will be interested to conduct further study regarding the
issue under investigated by providing useful information.
Finally based on the
factors found to be influencing stakeholders ? Integrated Electronic Payment System”, the study may provide
recommendations for public service delivering sector about changes needed to accelerate adoption
of the system to deliver service to
customers through technological

Organization of the Study

study contains five chapters in which each will be discussed in depth later.
Chapter one is about preparing the whole research by considering the various
important aspects such as Back ground of study, problem of statement, an
illustration of the objectives of the study, scope of the study, significance
of the study and limitation of the study. Chapter Two consists of review of
related literatures and researches related to the problem being investigated.
The methodology and procedure for the study will present in Chapter Three. The
results of the study analysis and findings will present in Chapter Four. The
final chapter has a summary of the study, conclusions and recommendations for
further research.


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