Detailed Information :

Mexico

Year of Establishment: 2005

Project Phase: Completed

Participants: Mexican Ministry of Transport, Transparency International Mexico, bidding companies.

Scope:

• In 2005, Ministry of Transport in Mexico invited Transparency Mexico to integrate an Integrity Pact into the contest for the provision of a Suburban Train to the Metropolitan Zone in the Valley of Mexico, Cuautitlan- Buenavista route.The Integrity Pact was designed too help eliminate corruption risk in the important project through enhanced transparency in public policy and business, as well as to print lasting change in the legal culture through the promotion of best practice.
• The Pact required the Ministry of Transportation and the bidders to pledge to refrain from engaging in corruption throughout the procurement process.

Key Facts:
Description

• In a bid for the provision of a Suburban Train to the Metropolitan Zone in the Valley of Mexico in 2005, the Mexican Ministry of Transportation, the bidders and Transparency Mexico signed an Integrity Pact to refrain from engaging in corruption throughout the procurement process.
• Transparency Mexico was invited by the Ministry to the “Implementation Room” to visit the site and to question and answer about the process, qualifications of participants, delivery and rating of the proposals and the decision itself.
• Transparency Mexico designated an Independent Monitor to be present (or represented) at all events related to the bidding. .

Key Learning:

• Funding by government to avoid misinterpretations
• Monitor must be known and recognized in his field
• Integrity Pact should be simple and easy to understand (no legal complexity)
• Main instrument for pressure is public withdrawal from tender
• No recourses or complaints

Mechanism:

• Cost: Integrity Pact caused additional cost of approx. USD 100,000 (Total Project USD 600 million); Monitor paid based on spent hours
• The independent monitor was nominated by Transparency Mexico. The monitor had the following functions to fulfill:

• Being present at all events related to the bidding
• Writing public report on what was witnessed - a formal testimony outlining the process, the measures adopted to avoid dishonest practices, and timely observations and suggestions to improve future processes, and timely observations and suggestions to improve future processes. This was made public by the end of the process.
• Observing every stage and act of the bidding process
• Proposing mechanisms to make the process more transparent and fair
• Ensuring rules and norms are respected

Benefits:

• For Ministry of Transport: Integrity was helpful to organize a transparent and fair process.
• For the CAF group (wining bidder): Integrity Pact gave CAF guarantee that the process was transparent.

Links:

• Transparencia Mexicana Pacto (In Spanish Only)
  
• Integrity Pact Implementation Mexico, Transparency International UK 2007

Source:

• Transparency International Mexico