Transparency is also about preventing corruption in procurement. Corruption allocates contracts to undeserving bidders at the expense of other bidders and the public, and it obscures the basis of decision-making in the local government. Often it means that resources do not meet their planned targets: everyone suffers, and often the poor in particular.
In the current climate in developing countries, there are many incentives for private sector firms to engage in corruption. They may want to ensure that they are included in the list of bidders, whatever their merits; or they could attempt to influence the bidder specifications to favour them relative to other bidders; or simply attempt to be selected regardless of whether they are the best bidders. It is therefore important to create procedural disincentives for corruption.