The World Bank said on Wednesday it has sanctioned a Chinese state electric engineering group and its subsidiary over fraudulent practices in a power project in Zambia, setting out new conditions for them to participate in bank-financed projects.
The action bars China Electric Design and Research Institute Co Ltd (CEDRI) from participating in World Bank projects for up to 18 months, with the ability to meet new compliance conditions and end the ban. The firm’s parent company, China National Electric Engineering Co Ltd (CNEEC), was allowed to continue to participate in projects under a settlement agreement, but could be banned if it fails to meet agreed conditions, the bank said.
The sanctioned firms are contractors on the $210 million Lusaka Transmission and Distribution Rehabilitation Project here, which aims to reinforce and upgrade the power transmission and distribution network in Zambia’s capital.
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