Overview of transparency in the construction sector
Construction of lecture theatres and seminar rooms, University of Dodoma one of 6 pilot projectsConstruction contributes around TSh 740 billion (£300 million) or about 5.6% to the GDP of TSh13,000 billion or £5.2bn. Current transparency requirements require disclosure of project information from the tender process and contract award as mandated under the Public Procurement Act, 2004 and its Regulations of 2005.
Corruption is now centre of the national agenda in all public debates and activities including in the media, Parliament and other elected bodies; professional, academic, social, political and religious gatherings; and in business entities especially in issues of business integrity.
Other transparency initiatives include the National Anti Corruption Strategy and Action Plan (NACSAP I of 2000 and NACSAP II of 2010) by Prevention and Combating Corruption Bureau (PCCB) with various studies and valuations between them and other stakeholders like FACEIT; the Project Anti-Corruption System (PACS), an initiative of Transparency International; PPRA’s 2008 Anti-Corruption Strategy; and strengthening of the Prevention and Combating of Corruption Act, 2007 (PCCA) which replaced the former ineffective PCB.
The social, business and political environment is also conducive to these initiatives, as they have the support of Non-Governmental bodies that are actively engaged in the fight against corruption, including FACEIT, ForDIA and other industry and professional associations; a very active Chapter of the African Parliamentarians Network Against Corruption (APNAC) and many Parliamentarians from both sides of the House who have taken personal initiatives to speak boldly against corruption inside and outside Parliament.
The Controller and Auditor General (CAG) has been strengthened and his annual reports given serious national consideration and action especially in Parliament through its standing committees and in the full House.
For the pilot, the Tanzanian Multi-Stakeholder Group appointed 4 Assurance Teams to collate and analyse project information from 6 projects from the roads, health, water and education sectors. The Assurance Team identified inadequate designs prepared prior to tender and a lack of competition for both supervision and works contracts as key causes for concern.
Lessons learnt during the pilot phase have been incorporated in the 2011 amendments to the Public Procurement Act 2004 on recommendations from the CoST MSG. Furthermore, the MSG is currently working with the Public Procurement Regulatory Authority to include the project information required by CoST to be disclosed in the related Regulations under revision at present.
To ensure the independency of its approach, CoST Tanzania requires procuring entities (PEs) to disclose information to the Public Procurement Regulatory Authority (PPRA) on a project to project basis.
PPRA serves as a central public procurement authority and its new Regulation No. 10(3) of 2013 requires that all PEs submit project information in a set format, which has been set by a template. To ensure that information required by CoST is incorporated into the template, its design is currently being discussed between PPRA and CoST Tanzania.
Future projects, which are to be scrutinized in accordance with the CoST methodology, include 15 road projects, construction of which is funded by the UK Department for International Development (DfID).
Procuring Entity Capacity Building
has been published that assess the requirements for mainstreaming proactive information disclosure by procuring entities in Tanzania. This includes collating project and contract information from the following 4 construction projects.
Hosted by the National Construction Council, CoST Tanzania uniquely operates as a member association whereby any entity or person who shares the Objectives and Principles of CoST may apply to become a member of CoST. An elected Multi-Stakeholder Group functions as the Executive Committee which is elected by the members of CoST based on a collegiate voting system to ensure each of the three stakeholder groups; government, the private sector and civil society have equitable representation.
Presently members of the MSG include:
- Regulatory Authorities (Public Procurement Regulatory Authority and National Construction Council)
- Professional Associations (AAT and TACECA)
- Civil Society (Front Against Corrupt Elements In Tanzania and ForDIA)
- Corruption oversight agencies (PCCB)
- Government (President Office)
- Parastatals (National Housing Corporation)
- Private Sector
- Academia (Ardhi University)
- Trade Unions (TAMICO)
The Multi-Stakeholder Group is now looking to establish CoST as a sustainable independent or autonomous organisation as a matter of priority.
Manager CoST Tanzania