Transparency is often a buzzword in international development that, for better or worse, is frequently misused. For many, transparency means being upfront at the end of a project, but to be truly effective, transparency needs to be built into all levels of a development project.
In the realm of Public-Private-Partnerships (PPPs), transparency is often what ties together ethical procurement and project development to create a fruitful partnership that benefits all parties involved. Procurement is a part-and-parcel of the GBPG ethos. Its founder Malcolm De Silva boasts nearly 25 years in procurement within the international development space. I myself have spent a considerable portion of my career building procurement transparency into PPP frameworks. With 2024 being a year where collaboration across all sectors – especially the public and private sectors –is essential for us to meet our goals as humankind, here’s a few thoughts on how we at GBPG go about making the PPPs we consult on more transparent.
Adaptive legal and technological frameworks
The foundation of any successful PPP venture is the legal framework that defines it. The legal framework of your country or organisation is akin to a reliable map guiding you through uncharted territory. An outdated legal infrastructure invariably becomes a breeding ground for loopholes, potentially paving the way for corruption and procurement misappropriation
A robust legal procurement foundation is indispensable as is a robust legal system that keeps up with the times. It should also serve as an adaptive instrument that aligns with the dynamic nature of contemporary PPPs.
Technology, such as e-procurement platforms, can be a powerful ally. By capturing centralized information, it minimizes corruption risks and ensures a transparent process. Collaborating with trade associations, investors, developers, and international organizations enhances potential project awareness, attracts competitive bids, and fosters a more transparent procurement environment. In the digital age, where information is power, utilizing technology becomes a strategic advantage. International PPPs bring in diverse and innovative perspectives and best practices, enriching the overall landscape and potential for development that offers value for money
Demystifying procurement
Procurement within the context of a PPP is a delicate symphony involving infrastructure, services, and public goods. With the involvement of the private sector comes not just added expertise, but also the value-for-money that comes with working with a company that specializes in the scope of a given project. This is not to say though that value-for-money means the cheapest option. And this is why transparent procurement is imperative to building transparent and successful PPPs so that the best partner can be chosen, not necessarily the cheapest one
The government’s clarion call for private sector investment necessitates a transparent and competitive procurement mechanism. Some easily implementable mechanisms for transparent procurement involve publicized calls for bids across multiple platforms (from traditional mass media to the Internet); ethical declarations from bidding companies that disclose any vested interests or personal connections they may have to a project; and independent panels reviewing bids from partners.
Smaller economies face unique challenges, notably limited competition. Opening projects to international competition fosters fairness and competitiveness. Strict selection criteria become the gatekeepers, preventing poor partner choices that can lead to project failure and corruption. In smaller economies, where resources may be scarce, the emphasis on transparent and competitive procurement is even more critical. It is not merely about attracting bids; it is about attracting bids that are competent, ethical, and aligned with the goals of the PPP.
Without transparent procurement mechanisms, we risk falling into the abyss of favouritism, compromised value for money, and the insidious presence of corruption. Crafting a procurement process that balances openness and competitiveness is not a mere formality; it is the linchpin that fortifies the entire PPP structure.
The resource giveaway fallacy
There’s a prevailing misconception about PPPs – the notion that the government is giving away resources, especially if the PPP involves foreign parties. However, this is a myth that needs to be firmly debunked. In actuality, PPPs retain government ownership and control over a project or asset, with the private sector stepping in to share specific risks while providing sorely needed financing.
However, the success of risk-sharing hinges on choosing competent and ethical partners. This is where competitive and transparent procurement becomes paramount. Establishing a mechanism that emphasizes the selection of partners based on merit, financial ability, and ethical standards is the bedrock of successful risk-sharing.
Foreign investors, particularly those with impeccable ethical standards, are often integral to the success of PPPs. To attract them, governments must go beyond mere declarations – they must send a resounding message of intolerance towards corruption. Demonstrating a commitment to transparency becomes a beacon to drive reputable investment. The global market is discerning, and ethical investors seek environments where their resources are aligned with transparent and accountable practices.
Mitigating a lack of transparency
Designing new frameworks for large-scale projects is often easier said than done. But to ignore a problem is even worse. Mitigation requires a proactive stance. Stringent procedures, conflict-of-interest declarations, and embracing e-procurement platforms are our tools. Transparency demands openness from the government, explaining the rationale behind company selections, and maintaining traceable and adjustable transactions. Proactive measures, embedded in the procurement process, become the armor protecting the integrity of PPPs.
Understanding where corruption can rear its head in procurement is pivotal. Whether through favoritism, weak laws, or poor public sector remuneration, these are the cracks that unscrupulous actors exploit. A transparent procurement process becomes our shield against inflated costs, mismanagement, and suboptimal project outcomes. Identifying potential pitfalls is the first step towards fortifying your PPP against the corrosive effects of corruption.
One of the most effective ways to build transparency is to instill a sense of collective ethics and responsibility. Stakeholder engagement in a PPP should never be an afterthought; actively and ethically engaged stakeholders form the essence of transparency – from government ministries to communities to end-users, stakeholder input and collaboration ensures a holistic approach, reduced corruption risks, and in the long run, a more impactful and powerful outcome.
Transparency is no longer a luxury, but a necessity – it should not be confined to the procedural aspects of PPPs but should permeate every layer, ensuring that the stakeholders are not passive spectators but active participants in the journey. Building frameworks that prioritize openness, fairness, and competition lays the groundwork for successful partnerships. Each element discussed here is not a mere guideline but a cornerstone to building what can eventually become a robust PPP framework that is centered around value and fair play.
Transparency isn’t just a concept – it’s a commitment that resonates through every stage of the PPP journey. Here’s to transparent, ethical, and successful PPPs.
