CoST Initiative
The construction sector plays a vital role in supporting social and economic development. Yet it is consistently ranked - in both the developed and developing world - as one of the most corrupt areas of economic activity.
The costs of corruption in public-sector construction projects extend far beyond increased contract prices. Corruption can hinder a nation's social and economic development at grass-roots level by undermining the rule of law and hindering the growth of strong and accountable institutions on which sustained economic growth depends. Corruption can result in unnecessary, unsuitable, defective or dangerous projects and projects which are often subject to severe delays.
The Construction Sector Transparency Initiative (CoST) is an international multi-stakeholder initiative designed to increase transparency and accountability in the construction sector. By ensuring public disclosure of project information, it aims to enhance the accountability of procuring bodies and construction companies for the cost and quality of public-sector construction projects. The core concept of CoST is 'Get What You Pay For'. The 'You' in this context applies equally to national governments, affected stakeholders, and to the wider public.
CoST is supported by the Department for International Development (DFID) and the World Bank and is being piloted over a two year period in seven countries. The pilot counties are Philippines, Tanzania, Zambia, Malawi, Ethiopia, Vietnam and the UK. More countries are expected to join the initiative after the pilot phase.
EAP’s Involvement
EAP is a partner in the International Secretariat for CoST, which is led by Price Waterhouse Coopers (PwC). Other partners are the UK Institution of Civil Engineers (ICE), British Expertise and TIRI. The role of EAP is to provide policy and technical advice to the Secretariat.
The international secretariat was set up in April 2008 to support the implementation of CoST in the seven pilot countries and to promote lesson-sharing amongst them. It is accountable to the Department for International Development and works in partnership with the World Bank.
Date Published: October 28, 2009
Source: Engineers Against Poverty