Preventing Corruption on Road Projects

Corruption in the financing, procurement, construction and maintenance of roads is probably the greatest obstacle to the development of an adequate and safe road network in developing countries. Corruption on road projects has both a human and economic cost. It is also damaging to the project, and to the companies and individuals involved on the project. Leakage from corruption on road projects is estimated at between 5% and 20% of transaction costs in corrupt countries. Road projects are prone to corruption due to a number of factors, including: contractual structure; diversity of skills; the size, uniqueness, complexity and length of road projects; concealed work; lack of transparency; extent of government involvement; and acceptance of the status quo. Corruption is difficult to prevent and uncover as it is concealed. Payments are often made through intermediaries. False documentation hides corrupt payments. Defective work is covered over. Corruption on road projects can be prevented if action is taken at three levels: project, corporate and individual. Detailed recommendations are made in this paper as to what should be done at these three levels. Cooperative action is essential if corruption is to be prevented. Several cooperative initiatives have been established. For the covering abstract see ITRD E139491.