Comments on: Is there a need for an ICtIC, and what should its functions be?

By: Nigel Lowe

Nigel Lowe — Tue, 20 Dec 2005 09:07:40 +0000

Having just scanned some of the previous postings, I thought to extend some of the connections I see to what I am dealing with for possible mutual benefit. It is the international practice of ‘Infrastructure (Asset) Management’ eminating from Australazia since before 1996 that has reformed and is seemingly transforming their ’service delivery’ (rather than ‘infrastructure development’) and is finding some expression even in Africa, particularly in water services. It is ‘best documented’ under the ‘International Infrastructure (Asset) Management Manual’ and in that form has apparently penetrated the UK. Good governance, contracting, auditing, etc. lies at the heart of it and not concentrating just on construction. The ‘corruption’ is perhaps less tangible but maybe even more costly in asset life-cycle terms. It evidently fleshes out environmental management practice. It promotes sound, integrated visible, accountable decision-making and in that sense shares objectives with Ethical Edinburgh. I find it particularly appropriate in South Africa for ‘local government asset and service management NB. excellence’ and setting paths ‘towards sustainability’ as against widespread ’service decline’ in our context. Our problems lie within broadly the domain of ‘management’, particularly ‘asset owners’ but seems within reach of ‘asset stakeholders’… Try the website here for more.

However specifically auditing practices and expertise (capacity generally) is under-developed. Key issues also stand up – ‘what to measure?’ and ‘who measures?’ In that sense the practice is being labelled ‘Strategic Municipal Asset Management’ and did penetrate the World Bank in 1999 in that form. So key challenges are inter-organisational / institutional rather than merely technical, financial, etc. The key questions posed here are;

- Can anyone else make other connections to this that might be mutually supportive?

- Beyond Transparency International, is there an international ‘body of knowledge’ (or interest like PMBOK) existing or emerging that might be accessible to developing these practices?

I trust others will see the commonalities here and give some pointers. Otherwise congratulations on an interesting initiative that I will continue to monitor anyway.

Nigel Lowe
Technical Analyst
Development Bank of Southern Africa

By: Neill Stansbury, Project Director - Construction and Engineering, Transparency International (UK)

Thu, 24 Nov 2005 06:45:39 +0000

Transparency International (UK) welcomes the “Ethical Edinburgh”
initiative. The external verification of anti-corruption procedures, the
accreditation of independent assessors, and the maintenance of associated
databases are each expected to become increasingly important if sustained
progess is to be made in curbing corruption in international construction
and infrastructure projects.

There is increasing evidence that integrity pacts reduce corruption on projects. Integrity pacts have been used sucessfully in more than 10 countries, and cost savings of up to 30% on budget costs have been recorded. Most notable in the construction sector is the recent decision of the Berlin Government to use an IP on the redevelopment of Berlin airport. An independent assessor has been appointed to monitor the parties’ obligations under the Berlin IP. For more details on the concept of the IP and IA, and for model agreements, go to http://www.transparency.org. On the home page, under “TI Tools and Initiatives” on the top left, go to “Preventing Corruption on Construction Projects”.

By: Hamish Goldie-Scot

Hamish Goldie-Scot — Sat, 05 Nov 2005 09:34:49 +0000

There is a risk of corruption at all stages of the project cycle. Though the value of corruption involving consultants is relatively small as a proportion of overall project value, the effect can be significant, as it affects the crucial preparatory and planning stages. For this reason, it makes sense to start by tackling corruption involving consultants. Unless the consultants can be trusted, it is unrealistic to expect them to play their part in curbing corruption among contractors during project implementation, when the financial stakes are much higher.

Though this initiative has strong Scottish and UK roots, it is intended that it should quickly become fully international. Ultimately the proposed centre would provide a single point of reference for best practice in the some key aspects of improving transparency in international infrastructure and construction projects.

By: Graham Hand, BCCB

Graham Hand, BCCB — Thu, 03 Nov 2005 11:35:34 +0000

I believe we need to be careful about the concept of “construction”. The fact is that there are few UK construction companies doing much actual construction abroad these days, unless it be in developed markets and specialised niches or high-tech elements of a bigger project. For the most part, the contractors are actually doing project management in JV with local companies, and even then the UK staff involved will normally be based abroad with quite a lot of autonomy from their UK parent company. This introduces much greater complexity into fighting corruption, especially when you realise that there may be dozens of companies working on a big project. This is why I prefer to think in terms of “infrastructure”, and including the activities of UK consultants abroad, not just contractors. In my view the two should not be separated.

Graham Hand
Chief Executive
BCCB

By: Hamish Goldie-Scot

Hamish Goldie-Scot — Tue, 01 Nov 2005 09:29:46 +0000

A web search throws up positive references to the use of Integrity Pacts in Columbia, Nepal and Germany. Perhaps someone with more direct experience can comment further on their effectiveness, and on whether there is indeed a need for external accreditation of Independent Assessors?

By: Christopher Boyd

Christopher Boyd — Mon, 31 Oct 2005 11:00:37 +0000

What hard evidence is there that “Integrity Pacts are emerging as an effective means of reducing corruption”?