1 / 11

CoST

CoST. Construction Sector Transparency Initiative (CoST) Bethan Grillo, CoST international secretariat IACC, 1 November 2008. Introduction. CoST is an international multi-stakeholder initiative supported by DFID and implemented in partnership with the World Bank

jurbina
Download Presentation

CoST

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CoST Construction Sector Transparency Initiative (CoST)Bethan Grillo, CoST international secretariat IACC, 1 November 2008

  2. Introduction • CoST is an international multi-stakeholder initiative supported by DFID and implemented in partnership with the World Bank • CoST is designed to increase corruption in the construction sector • Two year pilot across seven countries • Represent the international secretariat, based in London

  3. Why is CoST necessary? • Corruption occurs at all stages of the project cycle • Distortion of decision making • Waste of public money – “bridges to nowhere” • Unsustainable projects • Health and safety issues

  4. What is CoST setting out to do? • Pilot countries: Tanzania, Zambia, Philippines, Vietnam, United Kingdom, Ethiopia, Malawi • Purpose: “Get what you pay for” • Process: disclosures, project selection, assurance

  5. Disclosures Analysis / Interpretation Assurance Team Reporting MSG CoST process • Preparation • Commitment by government • Appoint CoST champion • Establish MSG • Produce Country Work Plan • Establish thresholds • Establish project information template • Appoint Assurance Team Operation Review of Design by Procuring Entities by MSG

  6. National and international CoST structure • Structure: • National - Political champion, MSG, assurance team • International - Secretariat – capacity building, TA, lessons International Advisory Group (IAG) • Assurance is key

  7. Construction industry stakeholders In-country Exchange of ideas and experience International CoST structure Multi-Stakeholder Group CoST Champion Assurance Team Donors • Capacity buildingsupport • Practical guidance • Facilitate shared experience • Informal quality assurance

  8. Agreement on Project Information Templates Development of Country Work Plan Appointment of Assurance Team A A A Project Project Appointment of CoST champion Constitution of Multi- Stakeholder Group Project R Project Project Project Project Main contractors Project R Commitment to piloting CoST A Project Procuring entities Public disclosure consistent with templates Publication of CoST reports Analysis and Interpretation by Assurance Team Review of Outline Design = represented on MSG = approved by MSG Illustrative implementation process

  9. Importance of multi-stakeholder approach • MSG is at heart of process • Framework for working • Communication • Transparency is only the beginning – stakeholders must be equipped to act

  10. Challenges • Precedent setting • Comparisons with EITI – complex exercise, each project unique, asymmetry of information • Legitimate reasons for changes in specification – requires careful analysis and judgement • Role of technical audits • Timeframe – many projects will not be completed • Value added of CoST • Ensuring multi-stakeholder approach is genuine • High public expectations • Earliest stages of development – we do not have all the answers!

  11. Potential benefits of CoST • Improving transparency and accountability on true price and quality • Competitive firms better positioned to win contracts • Reduces reputational risks for governments and companies • Improved investment climate • Greater role for civil society in governance of construction sector • Fewer defective buildings

More Related