PRESS RELEASE

World Bank Announces New Settlement with Gezhouba Group Co. Ltd

May 29, 2015

WASHINGTON, May 29, 2015— The World Bank Group today announced the debarment of Gezhouba No. 1 Engineering Co. Ltd., Gezhouba No. 5 Engineering Co. Ltd., and Gezhouba No. 6 Engineering Co. Ltd. and their affiliates for a period of 18 months. In addition, China Gezhouba Three Gorges Engineering Co. Ltd. and its affiliates are also debarred for a period of six months. China Gezhouba Group Co. Ltd also received a Letter of Reprimand which is valid for six months during which the Group remains eligible to participate in World Bank-financed activities.

The sanctions are part of a Negotiated Resolution Agreement between the World Bank and China Gezhouba Group Co. Ltd., and its four subsidiaries; namely: Gezhouba No. 1 Engineering Co. Ltd., Gezhouba No. 5 Engineering Co. Ltd., Gezhouba No. 6 Engineering Co. Ltd., and China Gezhouba Three Gorges Engineering Co. Ltd. The settlement follows the acknowledgment of misconduct by these entities in three Bank-funded projects in the Peoples Republic of China in relation to water conservation, earthquake recovery and flood management.

The agreement signed between the World Bank and China Gezhouba Group Co.Ltd took note of the extent of cooperation that the Group and its subsidiaries' demonstrated and the extent of proactivity and remedial action taken by the companies to ensure that this misconduct does not recur.

Under the terms of the Agreement, Gezhouba No. 1 Engineering Company Limited, Gezhouba No. 5 Engineering Company Limited and Gezhouba No. 6 Engineering Company Limited commit to cooperating with the World Bank Integrity team and are also required to adopt a Corporate Compliance Program consistent with the World Bank Group Integrity Compliance Guidelines.

The debarment of Gezhouba No. 1 Engineering Co. Ltd., Gezhouba No. 5 Engineering Co. Ltd., and Gezhouba No. 6 Engineering Co. Ltd. and their affiliates qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.



Media Contacts
In Washington
Dina El Naggar
Tel : (202) 473-3245
delnaggar@worldbank.org
For Broadcast Requests
Mehreen Sheikh
Tel : (202) 458-7336
msheikh1@worldbankgroup.org


PRESS RELEASE NO:
2015/475/INT

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