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World Bank blacklists Chinese contractor building E.C.D. Highway

Oct 02, 2019 News

The World Bank has barred the Chinese contractor involved in the East Coast Demerara road expansion project from participating in any of its projects.
The sanctions, according to the World Bank, will last for two years.
According to the World Bank, China Railway First Group (Guyana) Co Limited is ineligible because it breached Procurement Guidelines.
The sanction is for the period September 17th, 2019 to September 16th, 2021.
World Bank’s documents explained that the sanction is the result of a Settlement Agreement and that the sanction imposed on China Railway First Group Co. Ltd. (“CRFG”) and extends to any legal entity that it directly or indirectly controls.
In July 2014, the Chinese company which had been set to construct the almost-US$1B Amaila Falls hydro project that the Coalition has voted down while in opposition, was awarded a contract for US$45.5M.
Four Chinese construction companies had tendered for the Ministry of Public Works project to widen the East Coast Demerara (ECD) public road. But it was awarded to China Railway First Group Company Limited which had the lowest bid.
The contract awarded to China Railway involved in the extension of the four-lane and upgrades between Better Hope and Belfield.
China Railway has been under fire for its lack of adherence to environmental regulations on that project.
The loan for US$45.5M is a concessional one from China.
Guyana has been battling a number of Chinese contractors who have been receiving more and more contracts in Guyana.
However, there has been growing concerns over the quality of work and work practices on the projects.

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