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Announcement MSG Members FAQ Photo Gallery Contact Us Mails CoST Stakeholders CoST Criteria Benefits of CoST Necessity of CoST Core Principles CoST in Tanzania CoST Champion in TZ CoST Launch Report CoST Rules November 2008  News Brief Multi Stakeholder Groups (MSG) in Tanzania How does CoST Work?

Why is CoST necessary? Public sector infrastructure projects make a major contribution to economic growth and poverty reduction but mismanagement and corruption during the planning, implementation and monitoring of construction projects can undermine the expected social and economic benefits. Recent studies show that corruption in public construction contracts is widespread, with bribes often accounting for ten percent or more of the contract price. Corruption allows unnecessary, unsuitable, defective and dangerous construction projects - buildings that collapse and roads that break up. Corruption also undermines the rule of law and hinders the development of strong and accountable institutions that are essential for economic growth and social justice. The effects of mismanagement and corruption are especially hard on the poor, who are most reliant on the provision of public services. Besides, the initiative will inevitably raise political and procedural, even legal, issues in Tanzania, because it will reveal possible shortcomings procuring entities do not currently control well, for example costs, tender processes, contract awards and possible wrongdoing by contractors. This is likely to create media and political interest and political and institutional pressure. It is also likely to lead to institutions taking a defensive attitude even if the shortcomings are a result of low capacity or lack of due process, and not the result of mistakes or dishonesty by individuals. Proper implementation of the CoST Initiative will therefore require strong, senior and experienced leadership in our Tanzanian government. However, the initiative cannot be meaningful without the real commitment of multiple key stakeholders, hence a need for collective efforts to make sure that CoST succeeds.