1. For the success of any project which is externally aided it is required to "ensure that the proceeds of any loan are used only for the purpose for which the loan was granted, with attention to consideration of economy and efficiency and without regard to political or other non-economic influences or consideration". The Borrower for such projects would be required to formulate procedures and institutional controls to guide project staff in guaranteeing that loan funds are not misused, and that the Borrower takes appropriate actions to reduce the chances of corruption. These procedures and controls also seek to balance anticorruption objectives with the need to ensure that the cost of doing business does not go up unnecessarily.
2. It must be underlined that anti-corruption work is not about grand strategies, but about management support for discrete and consistent measures. Key is close monitoring and follow-through, to ensure that, the projects systematically incorporate what is being learnt. The PCU & PIUs needs to take each specific project situation into account to prioritize and sequence actions. They also need to establish procedures that avoid possible misuse and maximize value for money. Careful supervision is required to ensure that agreed procedures are complied with in letter and in spirit, as also to track the achievement, output and outcomes. PCU & PIUs would also introduce anticorruption and demand-side measures to prevent problems in existing projects. Better controls and detection naturally bring more irregularities to the surface. Additionally, as communities come to trust the project, they will complain and demand more. These pressures must be anticipated and accepted as part of the price that must be paid for creating a more efficient system.
Project Design Principles & Implementation and Grievance Redressal Mechanism
3. The project realizes that the one tool which can make a marked influence on good governance is free