Detailed Information :

Vietnam ; Tanzania; Zambia; Philippines and the UK

Year of Establishment: 2008

Project Phase: Implementation Phase

Participants: Pilot and implementing countries: Vietnam; Tanzania; Zambia; Philippines and the UK; Donors: World Bank and Department for International Development; private sector construction companies and associations; civil society organisations; financial investors.

Scope:

• Ultimate aim is to enhance the accountability of procuring entities and construction companies for the cost and quality of public sector construction projects, by improving transparency to a broad range of stakeholders.

• Although the starting point is for countries to recognise the value of transparency at all stages of the construction project cycle, the initial focus of CoST is on the period from contract award through to final build, to allow questions to be raised about outcomes and how the overall procurement process is being managed.

• Applicable to any country and to any government department or agency with responsibility for public sector construction projects.

Key Facts:

Description

• a partnership in the Construction Sector – between governments, private sector and civil society; launched in May 2008 in Tanzania, Dar es Salaam. Support is provided by the World Bank, DFID and the international secretariat – led by Pricewaterhouse Coopers, Engineers against poverty, Institute of Civil Engineers and TIRI.

Objective

• To support economic growth and poverty reduction by increasing transparency and accountability in government funded construction projects.

Key Learning:

• CoST is a two year pilot. It will be evaluated to see if the multi-stakeholder approach to transparency and accountability is effective in the construction sector.

Mechanisms:

• Cost: DFID contributes £4.4 million to the CoST pilot over two years.
• Implementation: The implementation structure comprises: a National Multi-Stakeholder Group which will play a central role in the oversight of CoST; an Assurance Team which will be responsible for assessments and reports to the NMSG; CoST Champion: senior official with overall responsibility for the implementation.
• Monitoring and Reporting: A set of monitoring and validating indicators will be developed in parallel with the pilot phase implementation.

Benefits:

• Implementing countries: improved access to better quality and more reasonable priced infrastructure as a result of a fairer construction market; favourable investment climate due to less corruption.
• Construction Companies: reduction of reputational risk to companies through association with corrupt projects; more level playing field from making more information on the construction process publicly available.
• Financial investors: a mitigation of political and reputational risks – which in turn have an impact on credit risks.
• Civil Society: improved access to information on construction projects and enhanced accountability; increased participation in the governance of the construction sector; improved prospects for better quality and value-for-money projects.

Links:

• The Department for International Development (DFID)-UK
• The Construction Sector Transparency (CoST) Websitte

Source:

• CoST Q&A – 20 th June 2008; CoST Programme Document – November 2007; CoST – Design for Pilot Phase – July 2007.