The Hindu Business Line : Overcoming roadblocks

As the World Bank-aided Kerala State Transport Project has come under a cloud following a standoff between the State Government and the project's contractors, it is time for Kerala to adopt new standards for public contracting.

As the northeast monsoon continues to shower Kerala with torrential rain, among the victims is one that is inanimate, but is nonetheless the lifeline of the State's economy and its citizens' livelihoods - the network of roads.

The State Government's official road development policy puts forth its overall objective "to promote a sustainable road network providing connection to all cities, towns and villages, and allowing safe and efficient travel between them."

(In comparison, the European Community's land transport policy is to "promote sustainable mobility that is efficient, safe and with reduced negative effects on the environment.")

DISTANT DREAM

That - as any brave soul who has tried to navigate through the moonscape that was once the Main Central Road will tell you - is still a distant dream.

So last week's revelation in the media that the World Bank-aided Kerala State Transport Project (KSTP) has come under a cloud following a standoff between the State Government and the project's contractors, is particularly worrisome.

According to a report in The Hindu, the KSTP was launched in 2002 under a World Bank-aided project, estimated at $330 million. The project was basically meant to upgrade Kerala's highways and major district roads. The formal contracts were signed on November 7, 2003, and December 2005 was set as the deadline for completion of the project.

In the initial stages of the project, reports indicate that the implementation was smooth, with the then United Democratic Front (UDF) Government backing it.

However, land for road expansion was handed over only by July 2005. Not surprisingly, the deadline was soon crossed, with consequent time and cost overruns.

EXTENSION DENIED

The contracting companies - Road Builder (M) Sdn Bhd of Malaysia and Pati-Bel, an Indo-Malaysian joint venture - went ahead with the work beyond December 2005, hoping to get an extension from the government. The project consultants recommended an extension of the deadline until March 2007.

However, by April, The Hindu reports, the Kerala Government stopped payments, leading to the current impasse.

TOUGH POSTURE

The Left Democratic Front (LDF) has put the blame squarely on the contracting parties. The Finance Minister, Dr Thomas Isaac, has adopted a tough posture, threatening litigation and contractual penalties if the project is not resumed as per the conditions of the government.

Experts now say that the project is unlikely to be completed any time soon, especially as land has still not been handed over for expansion on some stretches. Even as the stalemate persists, amidst charges of corruption being hurled at some government officials, it highlights the larger issue of transparency and accountability in infrastructure projects.

As Kerala grapples with the tough task of matching the levels of basic infrastructure in other States, it must also actively seek out higher standards of public accountability.

The Global Corruption Report 2005 from Transparency International (TI), the leading international non-governmental organisation combating corruption worldwide, shows how corruption in the construction sector undermines economic development.

`DAUNTING OBSTACLE'

According to Peter Eigen, Chairman of TI, "Corruption in large-scale public projects is a daunting obstacle to sustainable development. Corruption in procurement plagues both developed and developing countries.

When the size of a bribe takes precedence over value for money, the results are shoddy construction and poor infrastructure management. Corruption wastes money, bankrupts countries, and costs lives."

TI's Minimum Standards for Public Contracting call on public contracting authorities to ensure that contracts are subject to open, competitive bidding. Other measures include maintaining a blacklist of companies caught bribing; providing public disclosure of the entire process; and ensuring monitoring by independent oversight agencies and civil society. The TI Standards also advocate the use of a TI Integrity Pact, which commits the authority and bidding companies to refrain from bribery.

INTEGRITY PACT

TI claims that the Integrity Pact is a tool that has already been successful in reducing corruption and cutting the costs of dozens of procurement procedures around the world. It has most recently been agreed to be deployed in the Euro 2-billion development of the Berlin-Brandenburg International Airport in Germany.

Even if Kerala manages to go part of the way towards achieving such standards, it can set a new trend in public accountability - and ensure that bickering and disputes like the one currently shrouding KSTP do not occur.

The writer can be contacted at kgkumar@gmail.com

More Stories on : Roadways | Infrastructure | Kerala | Random Walk

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Making IT solutions work for air cargo operations

Problems at Chittagong port

Where are all the BoxNs?

NMPT banks on rail connectivity

Bidding for port control

`Green signal' for Vallarpadam rail alignment

Are highways speed-breakers to Mangalore area development?

Overcoming roadblocks

Passenger comfort, the new mantra for airlines

Container rates still opaque