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World Bank Debars Hunan Electric Power Design Institute

Infra News - Published on Tue, 17 Sep 2019

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The World Bank announced the 20 month debarment of the China Energy Engineering Group Hunan Electric Power Design Institute Co Ltd, a Chinese state-owned enterprise that provides engineering and construction services, in connection with fraud as part of the Lusaka Transmission and Distribution Rehabilitation Project in the Republic of Zambia. The debarment makes CEEC-HEPDI ineligible to participate in World Bank-financed projects. It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment. The project was designed to increase the capacity and improve the reliability of the electricity transmission and distribution system in Lusaka, Zambia. According to the facts of the case, CEEC-HEPDI knowingly and fraudulently falsified documentation describing past contract experience, litigation history, and business credentials to meet the requirements of the bidding documents. The company won the contract.

The settlement agreement provides for a reduced period of debarment in light of the company’s cooperation. As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.

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Posted By : Rabi Wangkhem on Tue, 17 Sep 2019
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