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Press Release
22 May 2008
Launch of Construction Sector Transparency (CoST) Initiative
A global partnership scheme to tackle corruption in the construction industry
backed by £4.4 million from the UK Government was launched today in Tanzania,
working alongside the governments of Tanzania, Zambia, Vietnam and the
Philippines.
Many countries face real problems of corruption in construction, which costs taxpayers billions of dollars per year, leading to shoddy and unsafe infrastructure.
The Construction Sector Transparency (CoST) Initiative is a two year pilot scheme in partnership with governments, private sector and civil society. CoST aims to make sure that government funded construction projects are delivered on time, at high quality and at a reasonable price.
Parliamentary Under-Secretary for International Development Gillian Merron said:
“Construction is a $1.7 trillion global industry annually, with billions per year lost due to corruption. By participating in this initiative, governments are sending a clear message to the construction industry that they are committed to strengthening transparency and accountability and stamping out corruption within the industry. This will lead to better quality infrastructure, which in turn will help economic growth and reduce poverty.”
The design for the CoST initiative followed a consultation process with developing countries, civil society and industry. The Department for International Development (DFID) along with the World Bank and the CoST Secretariat led by PricewaterhouseCoopers LLP, will support pilot countries implementing the scheme.
Notes to editors
- Each pilot country will determine precisely how to implement the pilot, based on the CoST criteria, in a way which adds value to existing systems and processes. This includes determination of value or types of projects to be covered, the scale and level of detail of information disclosures, the best and most efficient way of making the material information available in the public domain.
- The criteria for CoST are:
- High level commitment by governments and private sector to participate;
- Constitution of a Multi-Stakeholder Group (MSG), a representative body including private sector and civil society;
- A Plan outlining the stages and funding; and
- Public disclosure of key information about planned cost and quality of infrastructure and the actual outcomes, in an accessible way allowing the public to make the comparisons about what was planned and what was delivered and to raise questions.
- More information of Construction Sector Transparency Initiative (CoST) can be found at
www.constructiontransparency.org
- CoST Secretariat:
- PricewaterhouseCoopers LLP –
- Institute of Civil Engineers –
- Engineers Against Poverty –
- Tiri –
Related Links
For further information, contact Amy Wright on 020 7023 0423 or 020 7023 0600, e-mail pressoffice@dfid.gov.uk or call our Public Enquiries Point on 0845 300 4100.