Detailed Information :

Germany

Year of Establishment: 2005

Project Phase: Implementation Phase

Participants: Berlin-Schönefeld Airport (Flughafen Berlin-Schönefeld GmbH) and Transparency International Germany

Scope: The airport was due to undergo a major expansion and to become the Berlin Brandenburg International Airport.

Key Facts:

Description

• Up to 2010, Berlin- Schönefeld Airport will be expanded to become the new capital city Airport Berlin Brandenburg International (BBI).An investment of EUR 2 billion.
• Flughafen Berlin-Schönefeld GmbH and Transparency International Germany signed an agreement according to which the airport company signs an integrity pact with every bidder as part of the tender participation. The bidding companies have to make sure that their suppliers adhere to the principles and sign the integrity pact as well. Provisions must be adhered to for the duration of the contracts.
• All contracts will be reviewed by external monitors. This is the first case of third-party tender monitoring in German procurement.

Objectives

• To establish a mandatory feature of the tender for the selection of suppliers, construction companies, planners, engineering and consultancy services.
• To bind bidders and contractors to refuse to pay or accept bribes or to engage in anti-competitive transactions
• To send a clear signal in support of fair competition, corruption prevention and against illegal transactions

Key Learning:

• The airport extension is one of the largest and most significant infrastructure projects in Eastern Germany, the integrity pact sends a strong anti-corruption signal.
• An external monitor needs to be experienced.

Mechanisms:

• Cost of external monitor - 3 days/week, (other costs were minimal).
• Role of Monitor: The Integrity Pact binds bidders and contractors to refuse to pay or accept bribes or to engage in anti-competitive transactions. If a bidder breaks the rules of the integrity pact, he can be excluded from the process. Any breach after winning a tender can result in the annulment of the contract;
• The bidder or contractor incurs considerable sanctions in the event of transgression, including compensatory damages of up to 5 per cent of the contract value. In individual cases compensatory damages can be higher. In addition, bidders who do not comply with the Integrity Pact can be excluded from bidding for future Berlin-Schönefeld Airport company tenders.

Benefits:

• The Berlin-Schönefeld Airport Company is the first corporation in Germany to work with independent external monitors to oversee the Integrity Pact.
• Costs of integrity pact were small compared to size of project. Benefits included the enhanced reputation of Berliner Flughafen as an ethical actor and a role model in the industry.
• Companies demonstrated to bidding contenders that ethical behavior could be competitive.
• Societal benefits: Taxpayers benefit from clean contracting, and Berlin is likely to use this method for future projects.

Source:

• Transparency International