CoST Ethiopia

Overview of transparency in the construction sector

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.

Governance

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:

1. Federal Ethics and Anti-Corruption Commission
2. Ethiopian Roads Authority
3. Ministry of Urban Development and Construction
4. Public Procurement and Property Administration Agency
5. Ethiopian Construction Contractors’ Association
6. Ethiopian Consulting Engineers’ & Architects’ Association
7. Ethiopian Grade I Contractors’ Association)
8. Transparency Ethiopia
9. Birhane Tibeb Art, Health & Environmental Association and
10. Ethiopian Association of Engineers

Benefits

Potential benefits of CoST

The Construction Sector Transparency Initiative (CoST) offers a range of potential short and long-term benefits to stakeholders and participating bodies:

Procuring bodies can benefit from:

• improved efficiency and transparency of the contract management process
• greater public confidence in the procuring bodies
• increased likelihood of competent contractors being engaged
• improved quality of construction and fewer delays
• less corruption and wastage

Public financial management bodies can benefit from:

• better management of public finances
• fewer opportunities for corruption
• improved governance likely to improve business confidence and trust, and increase prospects for investment
• improved financial management recognized by ratings agencies and financial institutions, thereby providing better access to private capital

Construction companies and associations can benefit from:

• greater confidence that a ‘level playing field’ exists
• improved prospects that contract award, implementation and payment schedules will be fair and open
• a reduced likelihood of risk to reputation through association with corrupt or failed projects
• better financial risk management leading to better access to private capital and more favorable lending terms

Civil society can benefit from:

• better outcomes for public-sector investment, in terms of value for money and responsiveness to the interests of society
• greater opportunities for public involvement in governance
• assurances that corruption is being tackled

Donors and providers of finance or loan guarantees can benefit from:

• reduced credit risks
• better return on investments
• funds provided are more likely to achieve objectives

International partners can benefit from

• a greater likelihood that funds directed to construction projects will achieve stated development impacts
• greater potential for cross-sectorial initiatives