Complete Book PDF (4.12MB) - World Bank eLibrary

Construction Sector Corruption in Ethiopia 281
market—including the limits to the client’s power and the fact that in
any competition there will be losers as well as winners. It is recommended
that, with possible donor support, the main professional associations
within the construction sector organize a series of meetings at
which these issues are discussed within the sector.
Trust
• Increased confidence in the fairness of the market. Government should set
itself a specific objective of increasing levels of confidence and trust
within the sector. This will in many cases be a by-product of other recommendations
related to identifying and addressing areas where the
construction market is perceived to be difficult to understand, difficult
to enter, or difficult to work in. With increased confidence identified as
an underlying objective, there is likely to be more clarity about the
underlying purpose of related initiatives such as improved transparency
and fairer contractual relationships.
• Fairer contractual relationships. Government should commission an
independent study of the theory and practice of contractual relationships
currently being entered into by the RRAs. The scope of such a
study should include recommendations for an appropriate sharing of
risk, an independent means of ultimate recourse in the event of a dispute,
and related measures to raise awareness and capacity in understanding
and applying contracts.
• Increased willingness to share information. Closely related to the issue
of transparency are specific areas where a lack of information has
given rise to perceptions, suspicions, and allegations that may be
unfounded yet have not been refuted clearly and unambiguously. Specific
information that could usefully be shared under this category
includes: (a) details of planning and appraisal processes leading to
investment decisions for rural roads; (b) details of the regulations limiting
the involvement of party and government officials in construction
companies; and (c) an accessible register of the declared
commercial interests of such officials.
Notes
1. The “value chain” concept is based on a process view that identifies six distinct
stages of project delivery—starting with the setting of policy and ending
with the final payment of contractors.