provide significant circumstantial evidence of corruption as well as (perhaps more importantly) providing timely evidence of poor-quality construction that can be corrected at the cost of contractors.<sup>39</sup> Once initial physical audits are complete, asset registries allow governments to track how constructed assets are used and maintained.

Comprehensive physical audits will be particularly powerful if combined with financial audits undertaken by professionals with a background in the construction industry. Strengthening the capacity of government audit bodies to carry out such audits, and/or outsource this work where appropriate, will play an important deterrent role.

There is also a role for community participation alongside professional auditing –the World Bank-supported Indonesia Urban Sector Development Reform Project uses NGO oversight including routine checks on specifications in each construction project location, as well as citizen score cards and satisfaction surveys, for example. Similarly, the World Bank’s Water and Sanitation Program has supported efforts in a number of Indian states to introduce online complaints managements systems and citizens’ report cards, and the Indian government is considering mandatory community participation and monitoring more broadly in the process of urban management.<sup>40</sup> The Indian experience suggests the importance of combining approaches involving complaints management with clear standards, staff incentives to respond and citizen engagement.

The Paraguay Road Maintenance Project, launched with the support of the World Bank in 2006 suggests that it is possible to combine a number of governance and anticorruption approaches in one intervention without overwhelming institutional capacity. The project combines a sectoral approach to governance and corruption issues with output-based and community-driven approaches in execution. As the project was being designed, two workshops were held by the Ministry of Public Works to discuss sector governance weaknesses which provided input into sector reform proposals and project design. This centered around the pillars of monitored results, accountability, transparency and participation:

- Results elements included a framework of monitorable output indicators to be tracked, but also baseline and follow-up surveys to provide evidence of socioeconomic project impact.

- Accountability measures included the development of a five year itemized sector budget, a road sector strategy and a road social contract in consultation with stakeholders that will guide expenditures and provide an agreed framework for measuring successful delivery.  The project will also utilize performance-based contracting based on objective output measures for maintenance components.

- Transparency measures included an active program of dissemination prior to and during the project, as well as electronic publication of procurements, contract

> 39 The World Bank Rampur Hydropower project includes processes to ensure implementing agency and independent laboratory testing of contractor materials, as well as daily measurement, testing and photography on-site to record conditions. In the Philippines, physical audits combined with a GIS system are being used to determine if roads and bridges actually exist and what state they are in as part of a drive towards improved transport governance.

> 40 Under the National Urban Renewal Mission.

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