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Hamish Goldie-Scot, UK, third regional conference on public procurement for ENP East countries, Tbilisi, 6 November 2019

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Presentation by Hamish Goldie-Scot, CoST-Infrastructure Transparency Initiative, UK, on the CoST Infrastructure Transparency Initiative, at the third regional conference on public procurement for ENP East countries, Tbilisi, 6-7 November 2019.

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Hamish Goldie-Scot, UK, third regional conference on public procurement for ENP East countries, Tbilisi, 6 November 2019

  1. 1. © OECD 3rd regional conference on public procurement for ENP East countries The CoST Infrastructure Transparency Initiative Hamish Goldie-Scot, CoST Technical Adviser, UK Tbilisi, 6-7 November 2019
  2. 2. Overview 1. Problem definition 2. VIDEO - The CoST global programme 3. Overview of CoST features 4. Theory behind CoST 5. Impact of CoST 6. CASE STUDY: CoST disclosure in Ukraine 1
  3. 3. 1. Problem definition 2 $15 trillion public infrastructure investment gap up to 2040 Public infrastructure particularly prone to corruption Growing demand for transparency and citizen engagement .. but no easy solutions Many underlying causes, including a lack of: • Transparency; and • Trust
  4. 4. 2. VIDEO: The CoST global programme 3
  5. 5. 3. Overview of CoST features 4 Multi-Stakeholder • Government, industry and civil society work together. • Builds trust Disclosure • Disclosure in Infrastructure Data Standard or OC4IDS format. • 40 data points disclosed over project cycle. Social Accountability • Stakeholders empowered to hold government to account. • Leads to improvements in policy and practice. Assurance • Disclosed data turned into compelling information • Concerns highlighted • Public launch of report Multi- stakeholder Working Disclosure Social Accountability Assurance Value for money Better services Enhanced trust WORKING TOGETHER … to LET THE FACTS SPEAK FOR THEMSELVES..to STRENGTHEN EXISTING ACCOUNTABILITY MECHANISMS… to IMPROVE PERFORMANCE
  6. 6. 4. Theory behind CoST - Finance staff & equipment - Clear operating procedures - Skills & experience - Quality management - Transparency - Performance management - Shared values & vision - Mutual respect - Confidence in fair contracts fairly applied - Institutional clarity - Rule of law fairly applied - Good performance rewarded What drives performance?
  7. 7. 6 Procuring Entity Project data and association information Proactive Disclosure Multi-Stakeholder Group Assurance process Assurance Report Reactive Disclosure Requests for information Stakeholders Site visits 5. Impact of CoST: Accountability
  8. 8. 7 BUSINESS Wants better markets SOCIETY Wants better services GOVERNMENT Wants better value for money GOVERNMENT Wants to be trusted Wants to trust the system BUSINESS Wants to be trusted Wants to trust the system SOCIETY Wants to be trusted Wants to trust the system 5. Impact of CoST: Trust
  9. 9. 8 Quick wins Some CoST recommendations simply provide a stimulus for policy initiatives that all parties already know are necessary Better data management Procuring Entities invest in strengthened management information systems Underlying causes of cost overruns Geographical distribution of funding 5. Impact of CoST: Better performance Accountability Clients subject themselves to increased public scrutiny. Examples include:  Constructive citizen engagement  Inflated quantities identified  Unnecessary project cancelled Belize bridge, Guatemala
  10. 10. 9 Member Affiliate Latin America: Buenos Aries, El Salvador, Costa Rica, Guatemala, Honduras and Panama. Africa: Ethiopia, Malawi, Tanzania, Uganda and Sekondi- Takoradi Eurasia: Afghanista n, Thailand and Ukraine. 6. Impact of CoST: Global application
  11. 11. 10 Infrastructure Data disclosure Platform All contract stages 1 2 3 4Planning Work execution Supervisi on Project design CoST IDS WHAT to disclose OCDS HOW to disclose Data set in OC4IDS INFRASTRUCTURE MONITORING 7. CASE STUDY: CoST disclosure in Ukraine
  12. 12. Ukraine: CoST disclosure Platform Data set in OC4IDS International standard OC4IDSINTERACTIVE ANALYTICS  Market  Contractors  Procurement Entities  Tenders State and local roads 11
  13. 13. 12 Ukraine: Real time analysis of road markets  INTERACTIVE FILTERS 2016 CURRENT REPAIR CAPITAL REPAIR RECONSTRUCTION NEW CONSTRUCTION   2017 2018 2019 0.1% 0.9% 1.2% 0.01%0.1% 19% 0.8% 0.4% 23% 0.7% 1.2% 26% 1.4% 2% 0.1% 14% 9% 3 Bln UAH (120 M USD) 692 M UAH (27,7 M USD) 0.4% 14% 57% 15% 1.7% 11% 0.3% 0.7%
  14. 14. Ukraine: Top 5 contractors Contractors analysis  TOP 5 contractors  Information about Contractor  Geography of contractor’s work  Procurement process analysis 47% 53% TOP 5 other 7% 7% 15% 16% 32% 9% 6% 8% TOP - LLC “Avtomahistral Pivden” 268 mln $ in 9 regions (21% of total value) 13
  15. 15. Ukraine: Detailed analysis of market 14
  16. 16. 15 7.0 4.4 3.8 2.6 1.8 1.0 31.6 thou - 7.9 mln 19.8 - 31.6 mln 7.9 - 19.8 mln 19.8 - 31.6 thou > 31.6 mln <31.6 thou 1 2 3 4 5 6 Contract value $ № participants Ukraine: Interactive real time analytics (competition)
  17. 17. 1А 1B 2 3 4 739,0 541,0 474,0 364,0 186,0 AVERAGE COST OF 1KM ROAD CATEGORY THOUSAND$PER1KM Ukraine: Interactive real time analytics (unit costs) 16
  18. 18. 17 CAPITAL REPAIR OF ALMA - ATYNSʹKA STREET Kyiv Terms of completion Initial – 487 days Final – 1217 days Total value Initial – $ 9.8 mln Final – $ 13.5 mln Ukraine: Overview of cost increases
  19. 19. 18 Hamish Goldie-Scot MA(Cantab) MSc CEng FICE Tel: +44 7803259721 Email: h.goldie-scot@infrasructuretransparency.org Website: www.infrastructuretransparency.org https://twitter.com/costransparency Sample portals: www.sisocs.org www.portal.costukraine.org

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