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World Bank debars German oil and gas contractor

The World Bank debarred a German construction and engineering company that serves the oil and gas industry Wednesday for thirteen months for a fraudulent practice connected to a project in Myanmar.

Ferrostaal Oil & Gas GmbH acted as the Myanmar-based partner of another company and as an agent to prepare a bid for a contract.

Ferrostaal Oil & Gas’ local representative and managing director instructed the partner company not to disclose the agreed commission to be paid to Ferrostaal Oil & Gas in the initial bid. Ferrostaal Oil & Gas did not correct this omission in a later amendment to the contract.

That was “a fraudulent practice under the World Bank Group procurement guidelines,” the World Bank said.

The $100 million World Bank-funded Ayeyarwady Integrated River Basin Management Project was designed to strengthen integrated, climate-resilient management and development of the Ayeyarwady River.

Ferrostaal Oil & Gas is one of five operating units of the Ferrostaal Group, a German industrial services company that develops projects and provides engineering, procurement, and construction services. The group has around 200 employees globally, according to its website.

During the thirteen-month debarment, Ferrostaal Oil & Gas is ineligible to participate in projects and operations financed by the World Bank Group.

The debarment qualifies for cross-debarment by the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the African Development Bank.

A list of all World Bank debarred entities and individuals is here.

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