This research focused on the effect of stakeholders’ participation and performance of Government projects in Iganga District. The study objectives were to establish the effect of sponsorship,ascertain the relationship between consultations and also assess the effect of communication channels among stakeholders on performance of HIV/AIDS projects in Iganga District. This is in line with the work of major authors such as Cheetham N (2002) and ReedS (2008) who stated that stakeholders’ participation was a proven approach of addressing health care issues, which had been utilized in HIV/AIDS prevention in the United States. The study used a descriptive and cross-sectional survey research design to collect data from 52 Community Based workers, Project Supervisors, Project coordinators and Project Donors in accordance with Krejcie and Morgan (1970).

Data was analysed using computer Statistical Packages for Social Sciences (SPSS) and revealed that there wasa strong positive relationship between sponsorship and performance of Government projects at r=0.618. There was also a moderate positive relationship between consultation and performance of Government projects at r=0.546.Furthermore, the data revealed that there was a very strong positive relationship between communication channels and performance of Government projects at r=0.892.Therefore, the research recommends that since participation affects the performance of projects, communities in Iganga District should involve themselves in developmental projects to encourage community developments in their locations.