Chinese companies bidding for New Harbour Bridge were blacklisted by World Bank for corrupt practices

Oct 25, 2021 News

Kaieteur News – The Chinese companies which are the lone bidders vying for the contract to design and build the New Demerara Harbour Bridge, a project which falls under the Ministry of Public Works, were once blacklisted by the World Bank for corrupt practices.
The companies in question are China State Construction Engineering Corporation, China Road & Bridge Corporation in joint venture with Peutes y Calzadas Infrastructuras SLU, China Geizhouba Group Company Limited, and joint venture partners: China Railway Construction (International) Limited, China Railway Construction (Caribbean) Corporation Limited, and China Railway Construction, Bridge Engineering Bureau Group Corporation Limited.
These Chinese-owned firms were among nine international companies pre-qualified by the government back in March to bid for the construction of the new bridge.
Research done by this publication found that China State Construction was debarred by the World Bank in January 2009 for six years after the company along with another Chinese-owned company reportedly colluded with local companies in the Philippines to rig the bidding of road projects in that country.
In 2017, the American subsidiary of China State Construction Engineering Corp., China Construction America was sued for “massive fraud” of a Bahamas Resort. BML Properties Limited, the owner of the Baha Mar Resort in Nassau, Bahamas had filed a $2.25 billion lawsuit against the company accusing the contractor of submitting hundreds of millions of dollars in fraudulent bills.
China Road and Bridge Corporation which is a subsidiary of China Communications Construction Company (CCCC) Limited was one of the seven companies debarred with China State Construction by the World Bank for fraudulent practices in relation to the Philippines road project.
The project was the Philippines National Roads Improvement and Management Program which was partly financed by a US$150 million loan from the Bank.
Another company, China Geizhouba Group Company Limited along with its four subsidiaries was blacklisted in May 2015, for misconduct involving three World Bank funded projects in the People’s Republic of China related to water conservation, earthquake recovery and flood management.
Geizhouba Group was debarred for a period of 18 months. This company too is one of the four companies bidding for the Amaila Falls Hydropower Project.
Kaieteur News learnt also that China Railway Construction Corporation (International) Limited and its two subsidiaries were blacklisted in June 2019 for alleged fraudulent practices involving a project in Georgia.
They were all debarred for nine months.
According to research, the debarment was part of a settlement with the three companies related to misconduct during the procurement process for a highway construction contract.
It was reported that the construction of the new bridge is expected to begin by the end of the year and conclude within two years. This four-lane, high-span fixed bridge, which is commonly referred to as the “flyover” is set to be built with the lifespan of 50 years.

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