Corruption in public projects and megaprojects: There is an elephant in the room!

TLDR

Corruption in project selection, planning, and delivery is under‑studied in project management literature, yet it is especially relevant for large, public‑sector‑led megaprojects that are unique and high‑risk. The study aims to foster discussion on selecting, planning, and delivering infrastructure within corrupt project contexts by introducing the concept of a “corrupt project context” and demonstrating its impact on megaprojects through an Italian high‑speed railway case study. The authors classify corruption types and identify project characteristics that increase vulnerability, then apply institutional theory and an Italian high‑speed railway case study to illustrate how a corrupt context affects megaprojects. The study finds that corruption degrades cost and time performance and diminishes the benefits delivered by megaprojects.

Abstract

Despite the relevance of corruption in project selection, planning and delivery, the project management literature pays little attention to this crucial phenomenon. This paper sets the background to foster the discussion concerning how to select, plan and deliver infrastructure in corrupt project contexts. It presents the different types of corruptions and the characteristics of projects that are more likely to suffer from it. Corruption is particularly relevant for large and uncommon projects where the public sector acts as client/owner or even as the main contractor. Megaprojects are “large unique projects” where public actors play a key role and are very likely to be affected by corruption. Corruption worsens both cost and time performance, and the benefits delivered. This paper leverages the institutional theory to introduce the concept of “corrupt project context” and, using the case study of the Italian high-speed railways, shows the impact of a corrupt context on megaprojects.