Udenrigsudvalget 2020-21
URU Alm.del Bilag 114
Offentligt
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The need for CoST:
Strengthening economies
and improving lives
What is CoST?
CoST – the Infrastructure Transparency Initiative
(CoST) is the
leading global initiative improving transparency, participation
and accountability in infrastructure.
CoST works with government, private sector and civil society
to promote the disclosure, validation and interpretation of
data from infrastructure projects. This helps to inform and
empower citizens and enables them to hold decision-makers
to account.
In addition to working with CoST members at the national
level, CoST works with a range of international organisations –
such as Open Contracting Partnership, International Federation
of Consulting Engineers (FIDIC), World Bank, and Civic-20 (C20) -
pursuing common goals to better the delivery of infrastructure.
Pedestrians walk to work.
Why do we need CoST?
It is estimated that between 10% and 30% of investment in infrastructure is lost due to corruption,
mismanagement and inefficiency.
Recent statistics
put wastage due to inefficiency at
53% (in low income), 34%
(in emerging) and 15% (in advanced)
economies. Furthermore, estimates prior to Covid-19, state that by 2040 the
world will face a US $15 trillion gap between projected investment and the amount needed to provide adequate
infrastructure.
Our experience indicates that increasing infrastructure transparency, participation, and accountability helps to
drive reforms that reduce mismanagement, inefficiency and corruption. Applying this approach results in cost
savings of magnitude, helping to meet the 2040 gap and deliver better-quality infrastructure for millions.
CoST creates better value for:
Governments because it demonstrates how public money is spent, identifies potential efficiency savings and
complements reforms in the management of public finances and the procurement of infrastructure.
The private sector because it ensures a level playing field and reduces the costs and risks of doing business.
Communities because it ensures cost-effective delivery of improved infrastructure that changes lives.
How does it work?
CoST provides a set of principles and guidance on increasing transparency, accountability and participation in
public infrastructure. Any national or sub-national government, megaproject or procuring entity can apply to
join
CoST
as a Member during a competitive process or as an Affiliate Member at any time. Our
members span four
continents worldwide,
representing a range of economies and contexts.
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URU, Alm.del - 2020-21 - Bilag 114: Henvendelse af 27/1-21 fra CoST vedr. bidrag til høring om Danmarks nye udviklingspolitiske strategi
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The need for CoST:
Strengthening economies and improving lives
The core features of CoST
The
CoST approach
is focussed on four core features: multi-stakeholder working, disclosure, assurance and social
accountability. These features provide a global standard for CoST implementation to further infrastructure
transparency, participation and accountability.
Whilst the standard is universally applied by CoST members, it can be adapted to country contexts, so that it is
appropriately implemented in different political, economic and social systems.
Disclosure
CoST increases transparency by promoting the disclosure of data on public infrastructure
projects, so that key information such as the purpose, scope, costs and implementation of
infrastructure projects is open, accessible and more readily available to the public. Key to
the process is data disclosure in accordance with the
Open Contracting for Infrastructure
Data Standard
(OC4IDS) or the
CoST Infrastructure Data Standard
(CoST IDS).
Assurance
CoST promotes accountability through an independent review of the disclosed data.
Through this assurance process, CoST validates technical data, interprets it into plain
language and identifies issues of concern. This helps stakeholders to understand the main
issues and acts as a basis for holding decision-makers to account.
Multi-stakeholder working
In each country, CoST is directed by a Multi-Stakeholder Group (MSG) that comprises
representatives of government, private sector and civil society. Through a neutral forum,
CoST helps these key stakeholders pursue shared objectives to ensure value for money
from infrastructure investment. Not only do they guide the programme, but they are key
to advocating assurance findings to key influencers.
Social accountability
Social accountability stakeholders such as the media, civil society and citizens play an
important role in holding decision-makers to account. CoST works with these stakeholders
to promote the findings from its assurance process and to use the disclosed data to
monitor infrastructure projects. And increasingly we are providing a platform for
communities to bring the issues that are important to them to officials.
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URU, Alm.del - 2020-21 - Bilag 114: Henvendelse af 27/1-21 fra CoST vedr. bidrag til høring om Danmarks nye udviklingspolitiske strategi
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The need for CoST:
Strengthening economies and improving lives
CoST impact
The value of CoST has been felt in myriad ways at local and national levels, below are a few examples of our most
recent impact.
CoST Thailand: Saving millions, enabling participation and shifting mindsets
In Thailand, the CoST approach prompted behavioural
change from the private sector and community and led
to cost savings of
US
$360 million
. By promoting
the level of infrastructure data in the public domain,
CoST Thailand encouraged competitive bidding
and lower contract prices. Furthermore, through its
innovative approach in public participation, the voice
of local communities was raised during project delivery,
furthering their trust in decision-makers and leading to
better quality construction.
Read more.
“
[It was common practice to] wake up
with a construction hole in front of
your home.’’
Community leader, Thailand
A member of the community contributes at
a public forum in Thailand.
Overhauling the Honduras Road Fund
Since 2015, procuring entities in Honduras have been disclosing infrastructure data on the online platform
SISOCS.
Alarm bells were raised after one public entity, the ‘Road Fund’ failed to disclose key data required by the CoST IDS
during a period when its infrastructure investment amounted to US$112 million. The Fund had become politicised,
with money assigned based on political allegiances rather than community needs. Thanks to its work, CoST
Honduras helped to close the Fund and in 2018 the new, transparent ‘Directorate of Road Heritage Conservation’
was established in its place.
Read more.
CoST Assurance Team in Honduras at a road project visit.
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The need for CoST:
Strengthening economies and improving lives
In Afghanistan, US $8.3 million saved after major overhaul of the design process
Over the past decade, the construction and
maintenance of Afghanistan’s road network has
been a priority for the government. However, CoST
Afghanistan’s First Assurance Report identified major
problems in project preparation of several road
projects, with inaccurate surveys and design leading to
significant time and cost overruns. After these issues
were raised by CoST, the National Road Authority
created the ‘Design Review Unit’ to provide pre-
contract oversight. Following its review of over 100
infrastructure projects and recalculation of quantities
and costs, the Unit saved US $8.3 million between
2018–2019 alone.
Read more.
HE Yama Yari.
“
If we had these sorts of safeguards [including CoST] in place in 2003, then we
would have saved hundreds of millions of dollars on public infrastructure.”
HE Yama Yari, Minister of Public Works, Afghanistan (2016 - 2020)
Transforming lives and infrastructure in Wakiso District, Uganda
Over recent years, infrastructure delivery in Wakiso District has been wrought with issues impacting on local
communities. And without the means to explain how their lives have been impacted, citizens have had little
faith in local decision-makers. Through an innovative approach, CoST Uganda addressed this by using traditional
community events known
as ‘barazas’ to bring
together stakeholders.
Here citizens told of how
dangerous roads and
poor sanitation resulting
from recent projects
affected their daily lives.
The authorities proved
they had genuinely heard
their stories - swiftly
rectifying these issues
after the barazas and re-
establishing trust in the
process.
Read more.
A baraza in Wakiso District, Uganda.
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URU, Alm.del - 2020-21 - Bilag 114: Henvendelse af 27/1-21 fra CoST vedr. bidrag til høring om Danmarks nye udviklingspolitiske strategi
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The need for CoST:
Strengthening economies and improving lives
Milestones on the CoST journey
Our global achievements can be shown in varied ways, below are a few examples of our collective success.
Rapidly growing in depth and breadth
A global movement:
In 2019 our membership
increased by over
40%
, with members from diverse
contexts and economies spanning four continents.
Scaling up disclosure:
CoST has promoted data
disclosure on
38,514
projects worldwide. The
e-platforms deployed by our members recently have
been key to a spike in numbers as seen in 2019, with
data published on
11,700
projects.
Learning and sharing:
Over
5200
people from
government, civil society and the private sector were
trained to use infrastructure data in 2019 – almost triple
the amount trained in 2018. This includes 572 private
sector representatives, double the amount in 2018.
3500
3203
3000
2500
2000
1500
1434
776
724
249
Representatives trained:
Government
Civil society
Private sector
1000
572
500
0
1,749
2018
5,209
2019
International endorsement of CoST
Over 20 countries have applied the CoST approach in contexts as varied as Afghanistan, El Salvador, Ethiopia, Thailand
and Ukraine. In 2019, the CoST IDS was recognised by the G20 and it has been included in key tools of the World Bank,
Transparency International and Global Infrastructure Basel. Similarly, the OC4IDS has been endorsed by the C20.
CoST has received backing from the construction sector with public support from the European International
Contractors and FIDIC with the latter encouraging its 102 member associations to consider how the CoST approach
can help improve practices in their countries.
“
I’m delighted that FIDIC has decided to endorse CoST and work together in the
global fight against corruption.”
FIDIC President, Bill Howard
CoST responds to pressing global issues
Gender inclusive infrastructure:
To help promote female participation in the sector we are working with
members to improve the gender balance in their composition and to amplify the female voice at public events.
Climate resilient infrastructure:
We are working to connect OC4IDS data with datasets on environmental
impact to better understand and promote the standard’s contribution to resilience.
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URU, Alm.del - 2020-21 - Bilag 114: Henvendelse af 27/1-21 fra CoST vedr. bidrag til høring om Danmarks nye udviklingspolitiske strategi
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The need for CoST:
Strengthening economies and improving lives
Covid-19 response:
We have been supporting members to be
Covid-19 responsive,
like in Honduras where the CoST approach has
been promoted on the construction of 93 new health facilities. We
have also developed robust guidance on how the CoST approach can
be applied in crises settings such as in post-disaster recovery or other
health emergencies.
A CoST Thailand meeting carried out with
social distancing measures.
CoST innovation
The development of our innovative tools and standards have been key to our impact and achievements.
OC4IDS:
Developed with Open Contracting Partnership the
OC4IDS
provides a comprehensive approach to
disclosure, combining the best of our existing standards so both contract and project level data is published. It is
applied to e-platforms, encouraging vital data centralisation and accessibility in ‘real time’.
CoST data analytics guidance:
CoST Ukraine’s
data analytical
tool
provides compelling visuals on Ukraine’s infrastructure
investment – highlighting areas such as who is winning contracts,
time and cost overruns and regional variations in investment.
With clear benefits for the private sector and others, our
disclosure guidance for CoST members shows them how they can
adopt and use the tool on their e-platforms.
The CoST Ukraine data analytical tool.
Infrastructure Transparency Index (ITI):
A first of its kind innovation, our latest tool – the ITI - measures and
compares levels of transparency in the infrastructure sector. Procuring entities are scored on key transparency
indicators including disclosure practices and citizen participation, allowing results to be compared in order to
promote better performance in a country’s infrastructure sector over time.
CoST Infrastructure Disclosure Platform:
Following the
success of SISOCS in heightening data disclosure in Honduras
and the development of
SISOCS-PPPs
which provides easy access
to data on thousands of public and public-private partnership
projects, the platform code for both tools will be made open
source in 2021. This will mean it can be used by our members
and others worldwide to increase attention on the transparency
of a range of high-value projects.
The SISOCS PPPs platform.
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URU, Alm.del - 2020-21 - Bilag 114: Henvendelse af 27/1-21 fra CoST vedr. bidrag til høring om Danmarks nye udviklingspolitiske strategi
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The need for CoST:
Strengthening economies and improving lives
How to get involved?
Are you an interested private sector, civil society or donor supporter? Or a government interested in joining CoST?
If so, and you would like to see the benefits of CoST in action, please contact us via
[email protected].
Aerial view of Third Mainland Bridge Lagos, Nigeria.
CoST – Infrastructure Transparency Initiative
Address:
6th Floor, Alliance House, 29-30 High Holborn, WC1V 6AZ, UK
Phone:
+44 (0)20 8057 3052
Email:
[email protected]
Charity number:
1152236
Company number:
8159144
Credit: Front cover image, Shutterstock/ultramansk and back cover image, Shutterstock/bolarzeal.
www.infrastructuretransparency.org
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