effective and transparent delivery of large ... - …...effective and transparent delivery of large...
TRANSCRIPT
EFFECTIVEAND
TRANSPARENTDELIVERY OF LARGE
INFRASTRUCTURE PROJECTS
Presentation – 1 March 2016Forum: « Reficar, anatomy of a scandal »Matthieu CAHEN, Policy Analyst
• Infrastructure investments are expected to provide tangible impacts on growth, quality of life and productivity.
• Total global infrastructure investment requirements by 2030 will come to USD 71tn (3.5% of the annual World GDP from 2007 to 2030).
• A large share of infrastructure investment are and will be borne by governments
• The government of Colombia developed an ambitious infrastructure plan
Infrastructure matters
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And so does procurement
Government procurement as share of GDP and of total govt. expenditures
Source: OECD National Accounts Statistics. (2013)
And it matters for everyone
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• For the private sector, public sector efficiency is the second business priority area for reform after product market regulation. And public procurement the top priority in this
sector:
BIAC Economic Survey, 2014
Strategic procurement can help countries addressing the “four Cs” in infrastructure projects:• Inadequate Cost recovery• Corruption• Insufficient Competition• Low Credibility of institutions.
What Strategic Procurement can bring to efficient and transparent delivery of Infrastructure?
Participation
Efficiency
Capacity
Integrity
Access
Balance
E-Procurement
Evaluation
Risk Management
Transparency
Integration
Accountability
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The 2015 Recommendation on Public Procurement: 12 integrated principles
• Infrastructure projects are prone to integrity risks because of their magnitude
• TI, the OECD and the American Society of Civil Engineers estimate the costs of corruption between 10% and 30 % of investment
• Given their complexity, infrastructure projects owners should go beyond abiding by existing laws and regulations
Promoting a culture of integrity
• An infrastructure environment promoting a culture of integrity starts with a skilled and mature organisation, notably for the procurement workforce.
• Capability’s assessments should be exercised at all level of governments involved in infrastructure projects.
Creating the right environment
Effective processesThe example of Crossrail
Source: Crossrail
Skills are crucial to ensure awareness of integrity risks
New Zealand implemented a procurement capability index which participates to define allocation of budgets between government agencies.
Source: New Zealand Government Procurement, Ministry of Business, Innovation and Employment
• Develop a comprehensive project risk map including integrity risks
• Promote strategic oversight
• Disclose project performance over time
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Ensuring transparency throughout infrastructure projects
Mitigating integrity risks
Procurement processes for the New International Airport of Mexico City are subject to social oversight aiming at ensuring the integrity of processes
• The OECD and ANAC developed High-level Principles for Integrity, Transparency and Effective Control of Major Events and Related Large Infrastructure
• These Principles promote the implementation of a « collaborative supervision and control » model
Oversight: from compliance to advice
Open data initiatives and open contracting promote transparency in infrastructure projects and reinforce trust of citizens
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Shedding light on performance of infrastructure projects
• Integrity and transparency risks are integral to the overall infrastructure project risk management strategy.
• Evolution of the project impacts strategic decisions necessary to mitigate those risks.
Conclusions
http://www.oecd.org/gov/ethics/integrityinpublicprocurement.htm
For more information on OECD work on public procurement