Overview of transparency in the construction sector
Watch a film on the impact of the CoST Ethiopia programme on local communities
Prior to CoST, transparency in the Ethiopian construction sector was limited to the disclosure of information on tenders and contract awards as required under the Ethiopian Federal Government Procurement and Property Administration Proclamation 2009. This information is required to be disclosed on the Public Procurement and Property Administration Agency web-site. The Ethiopian Multi-Stakeholder Group persuaded their Government to revise the country public procurement regulations to include the majority of the CoST disclosure requirements in a procurement proclamation and directives. This provides the MSG with a mandate to collaborate with the participating procuring entities.
The Ethiopian pilot demonstrated the potential of CoST to hold procuring entities to account, identify governance reforms and generate significant cost saving. Its assurance teams analyzed 25 projects from the roads, education, water and health sectors highlighting causes for concern throughout the project cycle, particularly in the feasibility and design stage as well as the tender evaluation process and in contract implementation.
The procuring entities all publicly stated that valuable lessons were learnt from the pilot process which they aim to integrate into reformed governance procurement practice. Specifically, the Ethiopian Roads Authority is looking to make improvements in document management, the Ministry of Education is focusing on increased compliance with procurement regulations, and the Ministry of Health has committed to carrying feasibility studies for all major projects in future. It also let to the re-design of a rural road in southern Ethiopia saving $3.7 million.
The Ethiopian Government has committed to CoST beyond the pilot with its inclusion in the National Growth and Transformation Plan and the Roads Sector Development Plan. The Ethiopian MSG is now aiming to institutionalise CoST by supporting the Public Procurement and Property Administration Agency website to facilitate the disclosure process and scale-up disclosure of project information from the procuring entities which participated in the pilot.
Procuring Entity Capacity Building
A report has been published that assess the requirements for mainstreaming proactive information disclosure by procuring entities in Ethiopia. This includes collating project and contract information from the following 9 construction projects.
Most recently, an independent consultant has been deployed to further scrutinise a number of additional project items using the recently revised CoST disclosure standards.
These standards are available online on the Federal Public Procurement and Property Administration Agency – FPPPAA website.
In addition to its work on coordinating the independent scrutiny of public procurement, CoST Ethiopia is also preparing a 5-Year Strategic Plan. Furthermore, it has trained a number of project engineers (PEs) on the basics of CoST and how to disclose information on the FPPPAA website. Recently, a Memorandum of Understanding (MoU) on Disclosure has been given to 8 of the trained PEs for comments. Once their comments are received, the final MoU will be signed and disclosure will begin.
CoST Ethiopi Following CoST Ethiopia's support to Procuring Entities (PEs) in disclosing data, the first assurance reports have now been published. The reports highlight key issues in terms of how the tender process was carried out and contracts awarded. Read more and download the reports here.
CoST Ethiopia has enjoyed strong and effective political support from its Champion, H.E. Ali Sulaiman, Commissioner, Federal Ethics and Anti-Corruption Commission. It is overseen by CoST Ethiopia’s Multi-Stakeholder Group Executive Committee which comprises representatives from:
- Federal Ethics and Anti-Corruption Commission
- Ethiopian Roads Authority
- Ministry of Urban Development and Construction
- Public Procurement and Property Administration Agency
- Ethiopian Construction Contractors’ Association
- Ethiopian Consulting Engineers’ & Architects’ Association
- Ethiopian Grade I Contractors’ Association)
- Transparency Ethiopia
- Birhane Tibeb Art, Health & Environmental Association and
- Ethiopian Association of Engineers
Manager, Multi-Stakeholder Group
Please click here for the briefing note on Ethiopia.