Corruption in the construction of public infrastructure has particularly serious implications for developing countries. Inappropriate project choice, high prices, poor quality, excessive time and cost overruns, inadequate maintenance, and low returns, among other challenges, impact negatively on economic growth and poverty alleviation. Corruption during the early stages of the project cycle, when projects are appraised, designed, and budgeted, may open up doors for additional corruption later on. Examples are presented to demonstrate how skewed incentives during project preparation can facilitate corruption during implementation (and create further negative impacts on project value). Efforts to improve transparency should focus on the procedures surrounding decision-making during project preparation. However, where corruption is deeply embedded, breaking the links among participants in the various stages of project delivery may be the only way to improving the governance of project preparation.

Anti-corruption in sectors series editor: Aránzazu Guillán Montero