An open bidding process, monitored by Transparency International (TI), has resulted in savings of the order of Rs.187 million (US$ 3.1m) for the Karachi Water and Sewerage Board (KW&SB). This achievement has been the result of introduction of a no-bribes "Integrity Pact" and the Least Cost Selection Method into the tender for a consultant for the Greater Karachi Water Supply Scheme (K-III Project).

The Integrity Pact for Transparency in Public Procurement Procedures with the Karachi Water and Sewerage Board includes a formal no-bribery commitment by all the bidders and the KW&SB. According to TI-Pakistan, "the pact's effectiveness rests on the binding commitment on all sides not to bribe, nor accept bribes, nor to collude with other bidders, to disclose all payments, and to report the violation of the Integrity Pact by other bidders during the bidding or the execution of the service". This project "represents a milestone in transparent bidding, the first of its kind in Pakistan". Recognition of the success of the Integrity Pact has taken root at the highest levels in the Karachi City District Administration.

"The result of this Integrity Pact," outlined TI-Pakistan, "is a stark reminder of the importance of a transparent bidding process - and the tremendous opportunity that arises for Karachi and the Government of Pakistan, as these savings can then be allocated to other sectors such as education, health and other vital public services."

In the event of a breach of the Integrity Pact, sanctions come into force against bidders and officials, including liability for damages and blacklisting from future tenders. Michael Wiehen, a member of TI's Advisory Council who has negotiated Integrity Pacts all over the world, worked closely with TI-Pakistan and the KW&SB during the whole process, which was officially launched in April 2001. According to Wiehen, "a crucial factor in the success of an Integrity Pact is the subsequent monitoring of the contract by civil society". The Karachi Integrity Pact "included monitoring by TI-Pakistan during the bid evaluation and award process," he continued. There are more than 100 Integrity Pacts worldwide in operation.

The Greater Karachi Water Supply Scheme forms part of the 13-point Programme for Economic Revival of Karachi, and the Karachi city government plans to apply the same transparent process in projects for the construction of three bridges on Sharea Faisal. In a further development, the Asia Development Bank has now indicated that it will consider introducing TI's Integrity Pact methodology for adoption by its Board of Directors in April 2002.

Furthermore, according to TI-Pakistan, on 1 December 2001 the Nazim (Mayor) of Gulshan-e-Iqbal Town Council, Mr Abdul Wahab, signed a Memorandum of Understanding with TI-Pakistan to implement the Integrity Pact for Transparency in Public Procedures and OPEN (Online Procedures Enhancement for Civil Applications) systems in Gulshan-e-Iqbal Town, Karachi. The OPEN system enables citizens to monitor the process of handling civil applications and of public procurement through the Internet. The system, which requires all officials to input the date and time of each application they handle, is viewable in real-time. Free access to all stages of administrative procedures eliminates the need for personal contact with officials or the payment of "express fees", and ensures that no official can delay a case without justifiable reason.
Source: http://www.transparency.org.pk