Transparency Through Increased Disclosure: Unlocking New Business Opportunities

Key Insights

  • Disclosure enhances trust.
  • Despite government willingness, disclosure is low.
  • High-value projects should be disclosed.
Isimba Power Station

On Monday, August 8, 2022, the 183-megawatt Isimba Hydropower Plant in the Kayunga district was shut down. Nankabirwa, Ruth Nankabirwa, the Minister of Energy and Mineral Development, told MPs that the facility needed to be fixed because of floods. The dam was finished in 2019, and it was initially thought it would cost $350 million. However, it ended up costing $567.7 million. China Water Company was the firm contracted to build the Power Station.

To increase transparency in public procurement, combat corruption, and strengthen public trust, the government built the government procurement portal — GPP. The GPP is an online platform where government entities are required to publish all procurement information. 

Even though the company in charge of building the dam, Uganda Electricity Generation Company Limited (UEGCL), is signed up on the platform, a quick search for contract information on the Isimba project on the GPP turns up nothing. It means that contract information related to the project has yet to be disclosed two years after the dam was completed.

Disclosure in infrastructure projects enhances trust.

There is a clear public interest in publishing contract information because it pertains to the use of taxpayer funds and how they are allocated and distributed.

Lack of transparency and corruption in contracting processes harm the taxpayer by causing them to pay more for less and causing a breakdown in trust in government initiatives.

On the other hand, improved transparency tends to divert government spending away from goods that may involve bribery or poor artistry while increasing the number of suppliers involved in the bidding process, ensuring that the government gets the best deals possible.

Political will must be backed up by action.

The government has enacted laws such as the PPDA Act, established disclosure platforms such as the GPP, and is now fully implementing the E-GP. Uganda was only the second country in Africa to be recognized as an Open Contracting for Infrastructure Data Standard (OC4IDS) publisher in February 2022 by the Open Contracting Partnership (OCP).

OC4IDS describes how to structure and format the disclosures recommended in the CoST IDS. The CoST IDS is a best practice framework for disclosure on infrastructure projects. It specifies what information must be disclosed to aid in monitoring infrastructure projects.

Why is it essential to publish OC4IDS data?

Using OC4IDS to publish government data enables comparisons with other publishers and facilitates the development of reusable infrastructure project data analysis tools. In addition, OC4IDS data can be connected with other essential documents, such as project pipelines and public sector budgets, to track the project’s inception through completion across many government bodies.

OC4IDS is designed to assist governments in collecting data that is well-structured, comparable across contexts, and has all the required fields to ensure data precision and clarity. It is intended to integrate with current sources of open contracting data and to function in the absence of organised, available contracting data.

By publishing government data through OC4IDS, governments can gain valuable insight into their spending and ensure that citizens know where their taxes are going.

Disclosure of infrastructure projects is still low.

Despite a law requiring government entities to disclose procurement information, the disclosure of infrastructure projects remains shockingly low. Over 230 procuring entities have enrolled in the government procurement portal, but only about 14 have disclosed infrastructure that meets the O4DIDS data standard.

Conclusion

Transparent infrastructure procurement and implementation are critical components for establishing public trust and ensuring taxpayer money is spent wisely. The government should strive to have an enforcement strategy for all infrastructure transparency initiatives. An excellent first step is to publish data that adheres to the OC4IDS standard. This data should also be regularly monitored to ensure it is up-to-date, accurate, and relevant for the public so that they can use it to make informed decisions on the best use of public funds.

Additionally, the government should encourage public input into the decision-making process by providing an accessible platform for citizens to offer their opinions on potential projects and how taxpayer money should be allocated.

Finally, the government should enforce clear rules and penalties for anyone who fails to comply with the infrastructure transparency initiatives.

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