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Integrity pact – A global standard for safeguarding strategic public investments

Integrity Pacts Atlas - Integrity pact – A global standard for safeguarding strategic public investments

Europe

Hungary

Number of integrity pacts
9
Relevant sectors
Waste Managment, Transport, Education, Social Security, Administrative Capacity
Governmental levels
National, Local
First integrity pact
2010
Most recent integrity pact (project end)
2021
Integrity pact recognised in country legislation
No

Integrity pacts in Hungarian-funded projects: Hungarian National Bank, Ózd water supply rehabilitation, Budapest XIII-District nursery, Budaörs home for the elderly, Széchenyi chain bridge

The Hungarian National Bank was the first public financial institution to use the integrity pact (IP) in Hungary. In 2010 and 2012, it signed two IPs with Transparency International Hungary to oversee the procurements of taxi services and the acquisition of computer workstations. Throughout the monitoring work, TI Hungary found that the procurement procedures complied with relevant laws and regulations and followed principles of transparency.

In 2011, TI Hungary co-led the implementation of another IP with the municipality of Ózd to monitor the development and sustainable control of its drinking water supply infrastructure and distribution systems, a project worth €5 million. The Swiss government funded the project through the Swiss Contribution Office in the framework of the Swiss-Hungarian Cooperation Programme. The Swiss Contribution Office provided funding for the monitoring work of TI Hungary and another independent external monitor.

The IP included integrity commitments for contracting authorities (CAs) and, on a voluntary basis, from bidders and provided the independent monitor with access to all information, communications, and documents related to the contracting procedures. It also established an “Integrity Advisory Group” coordinated by TI Hungary and representatives from other IP parties to oversee IP implementation. In case of suspected violations, parties could refer to the Public Procurement Arbitration Board and, if violations were confirmed, incur sanctions foreseen in Hungarian legislation.

The IP, which ran until 2016, contributed to the improved quality of the various procurement procedures, and no report or allegation of corruption was filed. The IP also contributed to enhanced citizen engagement. Amongst other things, TI Hungary developed a visualisation tool that allowed visitors to easily track the procurement process and project implementation and report their needs and concerns.

In 2013, TI Hungary signed another IP with the municipality of the XIII-District of Budapest to monitor the procurement and implementation of a nursery’s refurbishment, a project worth €1.3 million. Through its monitoring work - entirely funded by the municipality through a service agreement - TI Hungary reviewed the municipality’s regulations and provided recommendations for their improvement. The IP helped raise nationwide visibility of the project, increased bidders’ trust in the process, and protected the project from political pressures. Later on, TI Hungary monitored another procurement of the XIII-District, this time for the construction of a playground.

In the following years, TI Hungary served as an independent monitor based on service agreements with contracting authorities for two further IPs. The first one, signed with the Budaörs municipality in 2017, is related to the expansion of a home for the elderly. The second one, signed with the state-owned enterprise Budapest Transport Centre in 2020, was applied to the contract for the construction works of the Széchenyi chain bridge.

Integrity pacts safeguarding EU funds in Hungary: Tisza-Túr flood reservoir and M6 highway

Between 2016 and 2021, TI Hungary took part in the EU-wide programme to pilot the integrity pacts (IPs) to safeguard EU funds. They co-implemented and monitored two further IPs in water management and transport infrastructure.

The first IP, signed in 2017 with the General Directorate of Water Management, was applied to the €72 million project to construct a reservoir to prevent flooding in the Upper Tisza River. As part of its monitoring work, TI Hungary facilitated the consultation process with affected communities and carried out on-site checks during execution to validate the contractor’s requests for contract amendments. Moreover, they implemented anti-corruption training for the CA that has now become part of its official training curriculum.

The second IP, signed with the National Infrastructure Development Corporation, was applied to the construction of a 25km stretch in the M6 motorway connecting Hungary to Croatia. The project contributed to revising and correcting the estimated contract value, which led to savings of €700,000 and improved selection criteria for bidders. The monitoring work was concluded in 2021 following changes in the funding scheme for the process, but TI Hungary has provided training for the managing authority to ensure sustainable application of transparency and accountability principles.

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