September 18, 2019

World Bank debars state-owned Chinese construction company

The World Bank announced on September 18, 2019, that it had debarred China Railway First Group Co. Ltd (CRFG) for two years.  According to the World Bank, CRFG made multiple misrepresentations during the bidding process for four contracts related to a World Bank-financed project to facilitate the expansion of hydropower in Pakistan.  Two of the contracts CRFG bid for were awarded to the company.

The debarment period was reduced to two years in light of the company’s cooperation and remedial actions, including taking personnel action and improving its compliance program.  After 18 months, the company will be eligible to convert the remaining 6 months to conditional non-debarment if it has complied with the terms of the settlement agreement, including a requirement that CRFG develop a compliance program consistent with World Bank guidelines.

World Bank press release