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Integrity Pacts in the Water Sector

AGREEMENTS AMONG PROJECT OWNERS, BIDDERS/CONTRACTORS, AND CSOS TO ABSTAIN FROM ILLICIT PRACTICES


Integrity pacts are agreements between project owners and bidders that they will abstain from bribery, collusion, and other corrupt practices during their bidding and for the duration of the contract once awarded. Integrity Pacts include a monitoring system typically led by CSOs.


Integrity Pacts are meant to detect and eliminate corruption risks from the procurement and contract management processes. The breach of an integrity pacts should trigger sanctions for those involved. In the case of a contractor, this could imply loss of contract, fines, and debarment from future tenders. These sanctions are a powerful deterrent for corrupt behaviour.


HOW IT WORKS

The distribution of responsibilities between the project owner and the bidder/contractor is individually arranged for each integrity pact, which is why there is no one-size-fits-all recipe. Nevertheless, every integrity pact process should involve the following steps:

  1. Learn about the integrity pact and issues of corruption in public contracting in the water sector, and read about successful examples.

  2. Plan the integrity pact process (when to start, who to involve, communication, etc.).

  3. Undertake initial activities, such as deciding on implementation arrangements and monitoring arrangements.

  4. Prepare the integrity pact documents and make sure to have appropriate legal support.

  5. Sign the integrity pact (project owner and bidders, etc.).

  6. Monitor the procurement process and take action if the pact is breached.

  7. Once the bidding is closed, ensure that contract execution is in line with the obligations set in the integrity pact.


RESOURCES

See the Manual - What is an Integrity Pact and how can it be implemented

Also available in French:


Training guide for facilitators:



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