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145
Table 4.3
Value chain area
Contract design
Tendering and
procurement
Corruption Risk in Contract Design, Tendering, and Procurement in the Ethiopian Rural Water Supply Sector
Typical corrupt practices in
water delivery chain
• Influence on project-level decision making
• Bribery for preferential treatment, elite capture
• Distortionary decision making
• Administrative corruption (fraud, falsification of
documents, silence payments)
• Interdepartment or interagency collusion over
procurement and construction
• Bribery to influence contract or bid organization
• Corruption in delegating management: fraud to
over- or underestimate assets; selection, type,
and award of concessions; decisions over duration,
exclusivity, tariffs, subsidies
• Corruption in procurement: inflated estimates for
capital works, supply of chemicals, vehicles,
equipment
• Falsification of documents
Source: Author.
Note: RWS = rural water supply. ST = study team finding. WS = workshop finding.
Risk areas evaluated by study team
in Ethiopia (RWS) Risk ST Risk WS
• Program and contract design: favoring one particular
contractor over another for corrupt reasons (e.g., by
specifying one supplier’s equipment or one
contractor’s rig)
• Contract design: evidence of overengineering in
design specification to generate more work for
contractors or suppliers
• Tendering process: fully competitive tendering of
contracts or unexplained or unwarranted exceptions
• Prequalification process: e.g., inconsistencies that
favor a particular contractor or group of contractors
• Collusion in bids: e.g., decisions around which drilling
companies compete for certain contracts, with
payments offered or solicited
• Objectivity and transparency of the tender
assessment process: e.g., can the process favor the
wrong contractor for corrupt reasons?
• Contract award: potential for extortion by
government officials from contractors (e.g., winning
contractor asked to pay bribe to guarantee award)
Risk
Low
High