The Construction Sector Transparency Initiative (CoST) focuses on stamping out corruption and mismanagement in publicly financed construction work. Its architects claim it has the potential to save millions of dollars of public money by 2020.
According to the Construction Transparency organisation, the initiative aims to reduce waste in public budgets, enable fairer competition in the private sector and increase opportunities for investors.
Lilianne Ploumen, Dutch minister for foreign trade and development cooperation, said: ‘CoST has a vital contribution to make in improving transparency and accountability in public infrastructure investment.
‘We are pleased to be able to provide some of the resources that are needed to help it achieve its full potential. CoST will not only save public money, but also ensure that local people have access to infrastructure that is so vital to their daily lives.’
Since the launch of the programme in 2012, over $1m has been contributed directly to country initiative by the UK Department for International Development, the World Bank and the African Development Bank.
CoST is calling on other bilateral and multilateral agencies to join the Netherlands in ensuring that the demand for the initiative is met with additional financial resources. This will allow CoST to extend the benefits of improved transparency and accountability from 13 to at least 22 countries by 2016, said the organisation.
CoST chair Christiaan Poortman added that the Dutch involvement was further evidence of the increasing global importance of transparency and accountability in public infrastructure.
Poortman said: ‘As evidence of the positive impact of improvements in transparency grows, the demand for CoST is increasing. International agencies including the G20 have emphasised the need to reduce corruption in infrastructure, but it has done little to focus on value for money within the sector. This is where CoST adds value.
‘We have seen the benefits of the programme start to take root, resulting in further countries wishing to join the programme. This contribution from the Dutch Ministry of Foreign Affairs will help us meet that need. We welcome their support and urge others to help us reach our objectives.’
Participation in the CoST initiative is voluntary and open to any country. There are 13 current participants including El Salvador, Hondurus, Uganda and the Ukraine.
