TI Germany to work with Berlin-Schönefeld on no-bribes Integrity Pact and independent monitoring of airport development

Berlin-Schönefeld Airport and TI Germany to work together in ground-breaking agreement to ensure transparency in airport extension

Berlin-Schönefeld Airport (Flughafen Berlin-Schönefeld GmbH) and Transparency International Germany, the German national chapter of Transparency International (TI), have joined together to introduce a no-bribes Integrity Pact to prevent corruption and illegal transactions in the course of the extension of Berlin-Schönefeld Airport. The airport is due to undergo a major expansion and to become the Berlin Brandenburg International Airport. TI is the global non-governmental organisation devoted to combating corruption.

The TI Integrity Pact will be applied immediately as a mandatory feature of the tender for selection of suppliers, construction companies, planners, engineering and consultancy services. Its provisions will apply for the duration of the contracts. A total investment of ca EUR 2 billion is anticipated into the Berlin Brandenburg Airport between 2005 and the planned opening of the new airport in 2010.

According to Thomas Weyer, Managing Director (Technical) of the Airport, the Berlin-Schönefeld Airport company "wants the use of the Integrity Pact to send a clear signal in support of fair competition, corruption prevention and against illegal transactions. We will take a strict line in enforcing the rules of tender agreements, and our commitment is reinforced by this ground-breaking co-operation with Transparency International."

Dr Michael Wiehen, Board member of TI Germany, explained: "The concept of the TI Integrity Pact has been tested already in a wide range of countries across the world. We strongly welcome the decision of the Berlin-Schönefeld Airport company to opt for transparency and a proactive approach to counter corruption. This is an important step, not least because the airport extension amounts to the largest and most significant infrastructure project in eastern Germany."

The TI Integrity Pact includes clear rules and obligations that are binding on bidders and contractors regarding integrity and transparency in their business relations. Sanctions come into force in the event of a breach of the contract conditions. The Integrity Pact binds bidders and contractors to refuse to pay or accept bribes or to engage in anti-competitive transactions. If a bidder acts in contravention of the rules during the selection process, this can result in that bidder's exclusion from the process. Any breach after winning a tender can result in the annulment of the contract.

The bidder or contractor can also incur considerable sanctions in the event of a transgression, including compensatory damages of up to 5 per cent of the contract value. In individual cases compensatory damages can be higher. In addition, bidders who do not comply with the Integrity Pact can be excluded from bidding for future Berlin-Schönefeld Airport company tenders in the coming years. The bidders make a binding commitment to demand the adherence to the provisions on the part of sub-contractors.

The Berlin-Schönefeld Airport company is the first corporation in Germany to engage independent external monitors to oversee compliance with the Integrity Pact with the appointment of Professor Peter Oettel to lead a team for this purpose. Professor Oettel, a Berlin engineer, is a member of TI Germany, and until his retirement in 1999 he served in the Berlin Senate Office for Urban Development.

Media Contact:

Transparency International Deutschland
Dr Michael Wiehen, Board member
Tel. +49 89-3236 2820
Dagmar Schröder, Managing Director
Tel. +49 30-54 98 98-0

Press Release available in German here.