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E f f e c t i v e a n d a c c o u n t a b l e s e r v i c e d e l i v e r y • Routinely disclosing core classes of documents and data about public contracts • Creating mechanisms for participation in public contracting at all stages of the contracting cycle • Building capacity of stakeholders to disclose, understand, monitor and act upon contracting information Routine public disclosure of contracting information, primarily through online procurement systems, is being achieved in many countries (see ‘Results’ box). Some countries are placing full texts of contracts and related documents online, supplemented with machine-readable meta-data. In Colombia, for example, the law requires public contracting information for all agencies, including the preliminary studies, the contract itself and performance information, to be published through the Public Procurement Electronic System (SECOP). In Minas Gerais, Brazil, the Public-Private Partnerships Law mandates extensive proactive disclosure of contracts, performance reports and preliminary studies regarding PPP projects through the PPP Unit website.2 The UK publishes contracting data and documents from planning up to and including the awarded contract on its contract finder website, and publishes performance data for major contracts through its Major Projects Authority website. In the extractive industries sectors, Guinea, Liberia, Peru and Timor-Leste are examples of countries that have published the full texts of contracts.3 Where factors such as technology, infrastructure and capacity act as constraints to internet access, low-tech options such as radio, newspaper4 and the installation of signposts with details of the relevant contract and contact details close to project sites, are currently practiced as alternatives.5 With regard to participation, governments are already actively inviting civil society to participate in public contracting through consultation and monitoring efforts in many countries. In the planning and pre-bidding phase, public hearings or consultations in needs assessments, feasibility studies, and environmental and social impact assessments have been found to be particularly relevant for contracts affecting land or delivery of services, so that the contracting process ultimately delivers to public needs.6 With regard to monitoring, Colombia,7 Mexico,8 Mongolia9 and the Philippines10 have institutionalised civil society monitoring of public contracting into their legal frameworks. In the absence of legislation, individual government agencies are also entering into co-operation with civil society organisations to support the monitoring of public contracts. For example, in India, the National Rural Roads Development Agency has partnered with the Public Affairs Centre NGO to pilot a citizen-monitoring programme to monitor the quality of construction of rural roads.11 Civil society contract monitoring has also been employed successfully by the Mongolian Local Government Agency, the Mongolian Ministry of Finance, the Philippine Department of the Interior and Local Government, and the Philippine Department of Social Welfare and Development, each of which have entered into memoranda of understanding with civil society organisations for contract monitoring.12 These partnerships are proving to be effective. For example, collaboration between the Philippine Department of Education and CSOs on monitoring textbook procurement has resulted in substantially shortened delivery times, improved quality of products and the elimination of ‘ghost’ deliveries. The private sector is also beginning to engage in open contracting in several ways. First, companies are collaborating within industry groups to promote transparency and responsible contracting. For example, the industry group International Council on Mining and Metals, in their principles, commit to collaborative engagement and open consultation. Individual companies are also working with governments and civil society to support disclosure of contracts and related documents. A representative of Newmont Mining Corporation explained that ‘if you’re a long-term investor, you want to build trust. I cannot see one reason why investment agreements are kept confidential’.13 Thus, Newmont not only agreed but ‘insisted’ that its comprehensive investment agreement with the Ghanaian Government not only be made public but that it be put before parliament for discussion and ratification. As a result, the enhanced transparency ‘helped build trust and credibility on all sides for working constructively to mutual benefit and social harmony’.14 Tullow Oil also published its petroleum agreements in May 2011 at the request and with the approval of the Government of Ghana.15 Similarly, in South Africa, where the Mineral and Petroleum Resources and Development Act requires companies to report annually on their social obligations, AngloGold Ashanti decided to disclose these otherwise confidential reports, to the benefit of citizen monitoring groups.16 Individual companies are also proactively consulting and cooperating with civil society organisations and communities, encouraging them to monitor the performance of contracts and acting on their feedback. Citizen monitoring of projects can help to build trust between companies and communities. For example, in Burkina Faso, the Kalsaka and Iam Gold Essakane SA mining companies recently collaborated with a coalition of CSOs on a contract monitoring effort.17 The coalition monitored the companies’ compliance with the contractual targets for local employment, finding that both companies were complying with contractual requirements and employing over 90 per cent local staff. Representatives from the mining companies welcomed the objectivity of the monitors, stating ‘the private sector needs this kind of recognition to be more willing to participate on critical discussions on open contracting’.18 Individual companies are also benefiting from increased Commonwealth Governance Handbook 2013/14 78


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