strives for A Better World to Live in

“ “ Integrity Pact” in Karachi Water & Integrity Pact” in Karachi Water & Sewerage Board, Government of Sewerage Board, Government of

Pakistan Sindh, on US $ 100 Million- Pakistan Sindh, on US $ 100 Million- Greater Karachi Water Supply Greater Karachi Water Supply

Scheme (K-III Project). Scheme (K-III Project).

by Syed Adil Gilaniby Syed Adil Gilani

strives forA Better World to Live in

Transparency International - Pakistan

The project was aimed to process The project was aimed to process the Procurement of Consultants and the Procurement of Consultants and Contractors for the 100 MGD Water Contractors for the 100 MGD Water Supply Project for Karachi City, in Supply Project for Karachi City, in

the most transparent manner.the most transparent manner.



INTEGRITY PACT CONCEPTINTEGRITY PACT CONCEPTThe ‘Integrity Pact’ is a system which The ‘Integrity Pact’ is a system which insures that all activities and decisions of insures that all activities and decisions of public offices are transparent and that public offices are transparent and that the projects/works are implemented, the projects/works are implemented, services are provided or taken, and services are provided or taken, and goods/materials are supplied without goods/materials are supplied without giving or taking any kind of personal giving or taking any kind of personal benefit, financial or otherwise. benefit, financial or otherwise. Justification of the decisions taken is Justification of the decisions taken is provided without much ado to the parties provided without much ado to the parties concerned or to any interested individual concerned or to any interested individual or institution/organizationor institution/organization



The Project aimed at Procurement of Consultants. The Project aimed at Procurement of Consultants. Following were the main problems tool aimed to Following were the main problems tool aimed to counter;counter;

-- Application of Selection Process in Transparent Application of Selection Process in Transparent manner.manner. -- The Firms were to be provided all technical The Firms were to be provided all technical information on the project and the selection information on the project and the selection criteria criteria including the evaluation marking system.including the evaluation marking system. -- The Award of Contract should be based on 100% The Award of Contract should be based on 100%

merit and on the lowest competitive cost amongst merit and on the lowest competitive cost amongst the technically competent and compliant bidsthe technically competent and compliant bids

..



The real aims of the Project were the core aims of “ The real aims of the Project were the core aims of “ Integrity Pact”, which are,Integrity Pact”, which are,

i) to enable companies to refrain from bribing by i) to enable companies to refrain from bribing by providing assurances to them that their competitors will also providing assurances to them that their competitors will also refrain from bribing and refrain from bribing and

ii) government & procurement agencies will undertake ii) government & procurement agencies will undertake to prevent corruption, including extortion, by their officials andto prevent corruption, including extortion, by their officials and

iii) to follow transparent and non discriminatory iii) to follow transparent and non discriminatory procedures for evaluation of Bids; andprocedures for evaluation of Bids; and

iv) to enable governments to reduce the high cost and iv) to enable governments to reduce the high cost and the distortionary impact of corruption on public procurement.the distortionary impact of corruption on public procurement.



Following factors were conducive for the success of the Following factors were conducive for the success of the Project.Project. Political will of Government to eliminate corruption. Political will of Government to eliminate corruption. Availability of the Expertise on Procurement procedures Availability of the Expertise on Procurement procedures

.. Contacts with concerned Government Officials like Contacts with concerned Government Officials like Governor of Sindh, Minister of Law, Nazim CDGKGovernor of Sindh, Minister of Law, Nazim CDGK Sincere voluntary efforts of TI Pakistan members, Active Sincere voluntary efforts of TI Pakistan members, Active

Support of TIS and PTF, Washington.Support of TIS and PTF, Washington.

Major Hurdles encountered were.Major Hurdles encountered were. Collusion between Consultant Firms themselves. Collusion between Consultant Firms themselves.

Collusion between Firms and Government Collusion between Firms and Government Officials. Officials.

Pressure from Political Parties.Pressure from Political Parties.

Arrangement of FundsArrangement of Funds



..

Unsuccessful efforts were made by bidders as well as Public Unsuccessful efforts were made by bidders as well as Public officials to stop the process. The Original Evaluation officials to stop the process. The Original Evaluation Criteria was based on the World Bank Method of “ Least Criteria was based on the World Bank Method of “ Least Cost Selection”. The Tenders were scrapped once on the Cost Selection”. The Tenders were scrapped once on the pretext of violation of Pakistan Engineering Bylaws. But pretext of violation of Pakistan Engineering Bylaws. But with the help of rich procurement expertise available with TI with the help of rich procurement expertise available with TI Pakistan, the desired results based on the lowest cost were Pakistan, the desired results based on the lowest cost were eventually obtained. eventually obtained.



. .

During the Project Implementation period as well as During the Project Implementation period as well as after the Award of Contract, Media coverage was after the Award of Contract, Media coverage was wide spread. In the earlier period, competitive forms wide spread. In the earlier period, competitive forms got published negative news on the new got published negative news on the new procurement procedures.procurement procedures.

The saving of Rs 185 million out of Rs 250 million The saving of Rs 185 million out of Rs 250 million due to “ Integrity Pact” was a shocking news which due to “ Integrity Pact” was a shocking news which attracted media to quote the results and good attracted media to quote the results and good aspects of Transparent Procedures.aspects of Transparent Procedures.

Every one appreciated the results. But The affected Every one appreciated the results. But The affected Groups, made hue and cry and sending complains on Groups, made hue and cry and sending complains on various grounds. Government of Pakistan is delighted on various grounds. Government of Pakistan is delighted on the results. The Nazim of Karachi, a force behind this “ the results. The Nazim of Karachi, a force behind this “ Integrity Pact” who wants TI Pakistan to apply “ IP” in all Integrity Pact” who wants TI Pakistan to apply “ IP” in all City Government Departments. He is also responsible for City Government Departments. He is also responsible for current “IP” with Gulshan Town which includes “OPEN current “IP” with Gulshan Town which includes “OPEN System”.System”.

The Media was really not fully involved at the process The Media was really not fully involved at the process stage. In fact Media was a hurdle at the closing stages stage. In fact Media was a hurdle at the closing stages when it collaborated with competing firms in publishing when it collaborated with competing firms in publishing negative information and resistance from Political parties.negative information and resistance from Political parties.

The net saving for the KWSB is The net saving for the KWSB is estimated at nearly Rs 185.5 million, estimated at nearly Rs 185.5 million, from the PC-1 estimate of nearly Rs from the PC-1 estimate of nearly Rs

249 million.249 million.



Transparency International-Pakistan Congratulates President Parvez Musharaff and Prime Minister Shaukat Aziz for Improving the Image of Pakistan in the World

Community

Transparency International lauds Pakistani reforms Agenda

BERLIN (July 13 2005): Chairman of the Transparency International Professor Dr Peter Eigen on Tuesday appreciated reforms agenda initiated by the government and said these measures have improved the

image of the country in the world community.

Talking to APP after meeting Prime Minister Shaukat Aziz here, Professor Dr Peter said efforts of the government for good governance are visible.

He said previous governments did not take any concrete steps to check corruption, which was the main reason that Pakistan was being considered a corrupt country, but now the present government had taken

revolutionary measures in the last six years under its good governance programme.

strives for A Better World to Live in

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