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Chinese construction contractor debarred by African Development Bank

A Chinese construction company has been debarred by the African Development bank for three years, after an investigation found it had committed “fraudulent practice”.

Image of the African Development Bank headquarters Image: African Development Bank

The African Development Bank said it was taking action against Hangzhou Fuchuan Electric Equipment Co, announcing a 36-month debarment period with conditional release, requiring the company to complete an integrity compliance programme.

The Bank’s Office of Integrity and Anti-Corruption’s investigation related to a tender for the construction of electricity infrastructure and supply of equipment under the Itezi-Tezhi Hydropower and Transmission Line Project in the Republic of Zambia.

The investigation found that the Chinese firm prepared falsified manufacturers’ authorisations for submission during the tender process.

The Itezhi-Tezhi Hydropower plant and Transmission Line Project consist of the construction, operation and maintenance of a hydro power plant at the Itezhi-Tezhi dam on the Kafue River in Zambia, and the transmission line is to evacuate the power to substations.

During the debarment period, Hangzhou Fuchuan Electric Equipment Co and its affiliates will not be eligible to participate in Bank Group-financed activities.

At the expiry of the debarment period, the company will only be eligible to resume participation in African Development Bank Group-financed activities after it has completed of an integrity compliance program consistent with the Bank’s guidelines.

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