Why is CoST necessary?
Public sector infrastructure projects make a major contribution to economic growth and poverty reduction but mismanagement and corruption during the planning, implementation and monitoring of construction projects can undermine the expected social and economic benefits.
Recent studies show that corruption in public construction contracts is widespread, with bribes often accounting for ten percent or more of the contract price. Corruption allows unnecessary, unsuitable, defective and dangerous construction projects - buildings that collapse and roads that break up. Corruption also undermines the rule of law and hinders the development of strong and accountable institutions that are essential for economic growth and social justice.
The effects of mismanagement and corruption are especially hard on the poor, who are most reliant on the provision of public services.
