The World Bank debarred a Chinese construction company Wednesday for two years for a fraudulent and corrupt practice connected to a project in China.
A de facto agent and subcontractor of China-based Zhejiang First Hydro & Power Construction Group Co. (First Hydro) offered and paid bribes to two government officials in exchange for a contract.
First Hydro also misrepresented its intent to mobilize the resources required to implement the contract as well as the availability of experts proposed in its bid.
Those are corrupt and fraudulent practices, respectively, the World Bank said.
The $127 million World Bank-funded Guangxi Laibin Water Environment Project was designed to reduce flood risks and improve drainage in selected areas of the city of Laibin.
As part of the settlement, the company also committed to continue fully cooperating with the World Bank Group Integrity Vice Presidency.
Wednesday’s debarment was significantly reduced in light of First Hydro’s extraordinary cooperation and voluntary remedial actions, the World Bank said.
During the two-year debarment, First Hydro 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.