The World Bank has imposed a 15-month ban on a Chinese company, Sieyuan Electric Co. Ltd after it emerged that the company falsified its contract in a Bank-funded in 2018.
The sanction, which was announced Tuesday, May 14, is in connection with fraudulent practices under the Inter-Zonal Transmission Hub Project, which was part of the Western Africa Power Pool (WAPP) Programme.
The Shanghai-based Sieyuan Electric Co., Ltd, (Sieyuan), specialises in research and development relating to electricity power technology.
What does this debarment mean?
The debarment makes Sieyuan and its affiliates ineligible to participate in World Bank-financed projects.
It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices, the World Bank explained in a statement.
The $111 million projects, which closed in 2018, was partly funded by a financing agreement with Ghana and was designed to improve the security and reduce the cost of the electricity supply to Burkina Faso while also increasing Ghana’s capacity to export electricity.
It was part of a program designed to establish a power-pooling mechanism to increase the affordability and reliability of electricity for citizens of the Economic Community of West African States (ECOWAS).