On 28th October 2014 Istvan Janos Toth presented CRCB’s research results on the corruption risks of the investment of Paks nuclear power plant. The study was prepared for the Energiaklub Institute.
The study examines corruption risks based on economic theory and the specific characteristics of large investment projects. We provide an estimation of the amount of corruption risks in the proposed investment and we put forward suggestions for an anti-corruption strategy. One of the key arguments discussed in the study is that with the increase of the investment costs or contract size, corruption risks tend to increase (see graph below). This suggests, that spending on set of smaller investment projects rather than one giant nuclear power plant may result in lower overall corruption risks (note: causality of this relationship requires further investigation, results are only indicative).