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PRESS RELEASE October 7, 2020

World Bank Group Debars Kalpataru Power Transmission Ltd.

WASHINGTON, October 7, 2020 — The World Bank Group today announced the twelve month and one day debarment of Kalpataru Power Transmission Ltd. (“KPTL”), an India-based company that specializes in engineering, procurement, and construction services in the fields of power transmission, railways, and others, in connection with non-contested fraudulent practices as part of the Southern African Power Market Project (“SAPMP”) in the Democratic Republic of the Congo (“DRC”) and the Egypt Wind Power Development Project (“EWPDP”).  

The debarment makes KPTL ineligible to participate in projects and operations financed by institutions of the World Bank Group. It is part of a settlement agreement under which the company does not contest responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment.

Following the initial debarment, the sanction of KPTL will convert to a conditional non-debarment for a period of five months. During this time, KPTL will be eligible to participate in projects and operations financed by institutions of the World Bank Group as long as it complies with its obligations under the settlement agreement. Otherwise, the conditional non-debarment will revert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank Group projects and operations until the conditions for release set out in the settlement agreement are met.

The SAPMP was designed to improve the infrastructure for the generation and transmission of electricity in the DRC, particularly by renewing and expanding high voltage power lines. The objective of the EWPDP was to develop transmission infrastructure and business models for scaling-up wind power in Egypt.  According to the facts of the case, which KPTL does not contest for the purpose of settlement, KPTL omitted the disclosure of intended payments to third parties when submitting bids under the SAPMP (in 2010) and the EWPDP (in 2012). Within the World Bank’s administrative Sanctions System, these actions are considered fraudulent practices as defined by the World Bank Consultant Guidelines.

The negotiated settlement agreement provides for a reduced period of sanction in light of the company’s cooperation and voluntary remedial actions, including a voluntary restraint from participating in Bank-financed projects. As a condition for release from sanction under the terms of the settlement agreement, the company commits to continue developing and enhancing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency. 

The debarment of KPTL qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.



In Washington:
Daniel Nikolits
(202) 473-2475