C. 6 Governance And Accountability Action Plan

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