1. Fédération Internationale des Ingénieurs-Conseils BIMILACI 2007 FIDIC Tools and Initiatives on Integrity Management Washington, May 11, 2007 Dr. Jorge Díaz Padilla FIDIC President

2. Fédération Internationale des Ingénieurs-Conseils “to develop, propagate and promote acceptance of global best business practice for the industry”. The FIDIC Mission

3. Fédération Internationale des Ingénieurs-Conseils In addition to promoting integrity business practices for the industry, FIDIC collaborates closely with several organisations in the implementation of initiatives to combat corruption. The FIDIC Mission

4. Fédération Internationale des Ingénieurs-Conseils FIDIC BIMS ®, GPIMS, policies and Model Agreements FIDIC BIMS ®, GPIMS, policies and Model Agreements TI Business Principles for Countering Bribery TI Business Principles for Countering Bribery UN Global Compact 10 th Principle (anti-corruption) UN Global Compact 10 th Principle (anti-corruption) FIDIC Collaboration WEF Partnering Against Corruption Initiative WEF Partnering Against Corruption Initiative ISO Standards and Corporate Social Responsibility ISO Standards and Corporate Social Responsibility

5. Fédération Internationale des Ingénieurs-Conseils “To operate successfully in an increasingly global world, the operations of a firm will have to conform to generally accepted best practices. In particular, ethical behaviour toward all the firm’s stakeholders must be key and visible”. FIDIC and Integrity

6. Fédération Internationale des Ingénieurs-Conseils Code of Ethics Policy on Business Integrity Policy on Conflict of Interest Model Representative’s Agreement FIDIC Tools

7. Fédération Internationale des Ingénieurs-Conseils Business Integrity Management System, BIMS ® Government Procurement Integrity Management System, GPIMS FIDIC Tools

8. Fédération Internationale des Ingénieurs-Conseils Most firms are “doing their best” to define and implement anti- corruption policies, but many lack consistency in their day-to-day business transactions and fail to obtain systematic feedback which may improve the process. Integrity Management

9. Fédération Internationale des Ingénieurs-Conseils What was missing was a framework which may be used to connect and transform isolated acts of integrity assurance into a complete management system. Integrity Management

10. Fédération Internationale des Ingénieurs-Conseils FIDIC Best Practice BIMS ® (Business Integrity Management System) is a tool designed for firms to prevent corrupt behaviour, and to encourage integrity.

11. Fédération Internationale des Ingénieurs-Conseils Member firms must have a commitment to integrity through the implementation of a “Business Integrity Management System” (BIMS ® ) involving all levels of management and every employee. A FIDIC Policy

12. Fédération Internationale des Ingénieurs-Conseils FIDIC chose the term “Business Integrity Management” on purpose; integrity management, as opposed to corruption control, accurately reflects the all- encompassing approach of the BIMS process. The FIDIC BIMS ®

13. Fédération Internationale des Ingénieurs-Conseils Firm’s rep Corrective actions Monitoring BIMS planning BIMS implem. Firm’s operations Critical processes Procedures Manual Review BIMS records Service delivery Code of C. Int. Policy The BIMS ® Components

14. Fédération Internationale des Ingénieurs-Conseils FIDIC believes that quality and integrity management are intimately related. For that reason, it advocates that member firms should engage in integrity management as an extension of their quality management systems. A FIDIC Policy

15. Fédération Internationale des Ingénieurs-Conseils A third party evaluation of a BIMS ® may be performed during an ISO 9001:2000 certification process. Certification

16. Fédération Internationale des Ingénieurs-Conseils FIDIC drafted a “Model Agreement” for firms engaging a Representative to develop business or provide assistance in a foreign country. FIDIC Best Practice

17. Fédération Internationale des Ingénieurs-Conseils As a complement to BIMS ®, FIDIC developed GPIMS, an ‘Integrity System’ for government procurement agencies. FIDIC Best Practice

18. Fédération Internationale des Ingénieurs-Conseils The guidelines for a Government Procurement Management System were formulated as a system based on an ISO 9001-2000 standard, with the flexibility to accommodate the fundamental principles of a particular government legal system. The FIDIC GPIMS

19. Fédération Internationale des Ingénieurs-Conseils GPIMS meets the protocols on government procurement anticorruption policy of the OECD’s “Principles for Managing Ethics in the Public Service” and the UN’s Convention against Corruption. The FIDIC GPIMS

20. Fédération Internationale des Ingénieurs-Conseils GPIMS is a set of interrelated elements designed for a government procurement agency to manage integrity principles. It is what the procurement unit does to insure that its workflow is corruption free. The FIDIC GPIMS

21. Fédération Internationale des Ingénieurs-Conseils In addition, GPIMS may serve as an important “due diligence tool for reducing the risk of litigation for loyal and honest government procurement public officers”. The FIDIC GPIMS

22. Fédération Internationale des Ingénieurs-Conseils Gov’s Ag. Rep Corrective actions Monitoring GPIMS planning GPIMS implem. Procurement operation current practices Preparation of tools Review GPIMS records Delivery Of Services Code of C. Int. Policy The GPIMS Components

23. Fédération Internationale des Ingénieurs-Conseils #1 “FIDIC advocates prevention as the key mechanism to combat corruption ….. ….. and, for that reason, it developed the Business Integrity Management System (BIMS © )”. The Way Forward

24. Fédération Internationale des Ingénieurs-Conseils #2 “FIDIC has now completed the design of GPIMS, an integrity compliance program for the procurement agencies ….. and, with this tool, would like to contribute to the anti- corruption agenda of the MDBs”. The Way Forward

25. Fédération Internationale des Ingénieurs-Conseils #3 “FIDIC proposes that expert opinions be requested as to the suitability of the proposed system ……… …… and, if appropriate, that the MDBs endorse GPIMS as a recommendation to the borrowing countries”. The Way Forward

26. Fédération Internationale des Ingénieurs-Conseils #4 “For that purpose, FIDIC would also like to request support from the MDBs to establish training programs to aid interested agencies and companies in the implementation of BIMS ® and GPIMS”. The Way Forward

27. Fédération Internationale des Ingénieurs-Conseils #5 “Finally, and as requested in previous occasions, FIDIC would like to insist that firms who may demonstrate the implementation of an integrity system should be recognized by the IFIs during the selection of consultants”. The Way Forward

28. Fédération Internationale des Ingénieurs-Conseils “While the creation of a ‘black list’ is often an invitation to litigation and conflict, the creation of a ‘gold star’ list of consultants who have a record of outstanding ethical service might be less controversial. Evaluation points in the short-listing process should be linked in some way to the possession of certificates of good standing”. The WB/Stellenbosch Report, Dec. 2006 Ethics Based pre-Selection

29. Fédération Internationale des Ingénieurs-Conseils Washington, March 2007 Thank you very much BIMILACI 2007