High Level Reporting Mechanism Colombia
Colombia has led the way in adopting and expanding the HLRM concept. It developed the first HLRM in 2013 to ensure a smooth and fair public tender process for the national 4G road infrastructure project.
Since then, Colombia has implemented similar mechanisms to cover concession contracts for Ernesto Cortissoz International Airport and procurement for all high-value projects by the National Infrastructure Agency. A HLRM is also being used for the Bogotá Metro First Line project.
How the Colombian HLRM Works
To coordinate the HLRM, Colombia’s Transparency Secretariat works closely with the government agencies in charge of the projects.
The HLRM is tailored to each situation, but bidders are always asked to agree to an Integrity Pact before participating in the tender process. This gives stakeholders a strong, early signal of the government’s commitment to a fair and open process. There is a significant deterrent effect.
The experts appointed to deal with issues raised via the HLRM were selected following an open call for tender. They come with backgrounds in criminal law, civil engineering and financial management. Crucially, they are independent from both the government and the companies bidding for contracts.
Alerts can be raised about unfair practices, a lack of clarity on technical aspects or any other issue negatively affecting the procurement process. During the 4G roads project, the HLRM was activated about a late modification to technical specifications that cut all but one bidder out of the competition. Working with the bidding companies, experts and government representatives, the HLRM resolved the issue within two weeks in a way that was acceptable to all sides.
The Colombian HLRM experts have also developed a matrix to help public authorities measure corruption risks in future tenders for public works.
Expansion of the Colombia HLRM
In August 2018, the Basel Institute on Governance and OECD signed a Memorandum of Understanding with the Colombian President and Mayor of Bogotá to promote collaboration in designing an HLRM for the construction of Bogotá’s first metro line.
Co-financed by central and local governments, the 25 km elevated metro line will transport around 650,000 passengers a day. The total cost of this major five-year infrastructure project is estimated at USD 4,100 million.
The Transparency Secretariat has been working with the Metro Enterprise, a company set up for this project, and senior Bogotá officials to define and implement the HLRM. The selection process for the Panel of Experts took place in January 2019. See more details on the Bogotá Metro HLRM here.
Peace Fund projects
The Colombian authorities are considering applying the HLRM to several major initiatives of the Colombian Peace Fund, Fondo Colombia en Paz.
Launched with the aim of investing around USD 46.6 billion in Colombian peace and development projects over 15 years, the Peace Fund is currently suffering from allegations of corruption and mismanagement and is being reorganised as a result.
The Government is considering a HLRM to oversee procurement in five highway projects funded by the National Infrastructure Agency. The agency has also taken the significant step of modifying its contract manual to require HLRMs in future large public tenders.
OECD Integrity Forum 2018: Introducing the HLRM in Colombia
- High Level Reporting Mechanisms in Colombia and Ukraine
- MOU for procurement related to Bogotá's first Metro line
- Press release: Basel Institute, OECD and Colombia sign cooperation agreement on a High Level Reporting
- Integrity Pact Sample HLRM Colombia (ESP)
Presentation: Implementation of the High Level Reporting Mechanism in Colombia
HLRM Colombia timeline
- Discussion on the HLRM between Colombia, OECD and Basel Institute.
- Draft proposal for an HLRM presented by Colombia at a side meeting during the Working Group on Bribery meetings at the OECD.
- Secretaría de Transparencia begins preparations for launch of HLRM.
- Formal launch of HLRM, including an international expert meeting.
- Presentation of the Mechanism by Secretaría de Transparencia (ST) to pre-qualified bidders at the 4G Roads Project; signature of Integrity Pacts with a clause on the HLRM between National Infrastructure Agency and pre-qualified bidders.
- Pilot begins.
- First alerts are received and a relevant complaint is addressed by the HLRM in a timely fashion
- Activation of the HLRM by the Agencia Nacional de Infrastructura to procurements carried out by the agency under Public Private Partnerships (PPPs)
- Development by the Secretaría de Transparencia of three new HLRMs, to be applicable to the Bogota Metro; Peace Funds related projects contracted by Fondo Colombia en Paz; and 5 infrastructure projects procured by Invías (National Highways Agency).