The World Bank has debarred a giant Chinese state owned contractor for 20 months for making false claims when bidding for a project in Zambia.

China Energy Engineering Group Hunan Electric Power Design Institute (CEEC-HEPDI) will be ineligible to participate in World Bank-financed projects during the debarment period.

The World Bank accused the company of falsifying documents describing its past contract experience, litigation history and business credentials.

It was bidding – successfully – for a $210m scheme to improve the transmission of electricity in the Lusaka area of Zambia.

CEEC-HEPDI is listed on the Hong Kong stock exchange and employs more than 160,000 people.

Also listed in the debarment for the same period are a number of subsidiary companies: Hunan Kechuang Power Engineering Technology, Hunan Kexin Electric Power Design and Hunan Zhongtian Engineering Supervision.

As a condition of the settlement, CEEC-HEPDI committed itself to developing an integrity compliance programme consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines.

The company is automatically prevented from bidding for work funded by bank’s sister organisations: the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the African Development Bank.

This is according to a statement issued by the World Bank in Washington D.C.

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14 COMMENTS

    • Chinese are funding major PF corruption in various projects. Almost everything is over priced. A road for $500 000 is invoiced at $ 1 million .This country id gone

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    • This is not the first time it has happened in Zambia. It happened under the MMD government under the Power Rehabilitation Project where a French company bribed a government minister whose identity has remained secret. Here no corruption has been cited except that the contractor falsified his work experience.

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    • What is the key message coming out of this article? Why and did we Zambians miss that?
      So are our people so dull we cant recognize a falsified document? The Energy sector is strategic for every country, so our secret services are not involved in scrutinizing these companies?

      DORA, this must be a slap in your face after your claim that GRZ is doing a lot to curb corruption fimo fimo.

      This is not good for the reputation of Zambian.

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  1. that’s what you supporters of p f fail to see. we keep on telling you that these guys ain’t transparent and that their dealings with the Chinese are shady
    even firms like av ic are very corrupt and work with the bad eggs of the pf to swindle tax payers moneys.
    the Chinese don’t care about the Zambian people and when you’ve a government that’s all about themselves and not the people it’s a very scary situation for the ordinary folk, all they want to do is put a roof on their head, a meal on the table and send their children to school

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  2. ACTUALLY ZESCO WON’T EVEN TRY TO DO IT…..
    THE STANDARD IS LOW WE EXPECT THEM TO MAINTAIN NOT CREATE WHAT OTHERS DO AND THAT’S WHERE WE GO WRONG AND THAT’S WHY THEY FAIL IF THEY DID IT ON THEIR OWN THEY WILL HAVE INTIMATE KNOWLEDGE OF ITS WORKINGS

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  3. doomed zambia surely truth be told these chinese are here to make money n destroy our country because we have blind leaders, dont we have a local company or zesco itself to do the jobs sure it hates mwe u wonder were the people in government have come from…….

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