World Bank Group Debars ADP International S.A.

The World Bank debarred two companies on Tuesday for collusive and fraudulent practices connected with airport projects in Madagascar and Croatia. The Bank sanctioned a third company for a collusive practice in connection with the Madagascar project.

France-based ADP International S.A. (formerly ADP Management), an airport developer, operator, and manager, and a subsidiary of Aéroports de Paris S.A., and ten subsidiaries were debarred for 12 months followed by 12 months of conditional non-debarment.

The World Bank-funded and IFC-supported Airports Madagascar Project was designed to provide partial financing for the design and development of the expansion and renovation works of the two main airports in Madagascar.

ADP engaged in collusive practices by attending improper meetings with government officials between February and May 2015 during the tender for the 28-year contract for the concession to run the airports, the World Bank said.

ADP also engaged in fraudulent practices in the World Bank-funded and IFC-supported Zagreb Airport Project by failing to disclose to the IFC that fees the company paid between June 2011 and March 2014 to a retained agent in connection with the concession contract were partially transferred to a non-contracted consultant. The Zagreb Airport Project was designed to provide partial financing for a 30-year concession contract for a new terminal’s design, construction works, operation, and maintenance within the Zagreb International Airport.

During the debarment, ADP and its subsidiaries — ADP Ingénierie, ADP Airport Services, ADP do Brasil Participações, ADP International Americas LLC, ADPM Mauritius, Aéroports de Paris Management 3, Airport International Group, Airport Management Company, Airport Management Services, and Jordan Airport Management — are ineligible to participate in projects and operations financed by the World Bank Group.

As a condition of the settlement agreement, ADP has committed to adapt its group-wide integrity compliance program to reflect the principles set out in the World Bank Group Integrity Compliance Guidelines. The company has also agreed to continue cooperating fully with the World Bank Group Integrity Vice Presidency.

The debarment of ADP does not qualify for cross-debarment because it is not longer than a year.

The World Bank said Tuesday Madagascar-based Colas Madagascar S.A. (Colas Madagascar), a second-tier subsidiary of Bouygues Bâtiment International, was debarred for two years for fraud and collusion related to the Airports Madagascar Project.

Colas Madagascar engaged in collusive practices by arranging improper meetings with government officials during the tender for the 28-year contract for the concession to run the airports, the World Bank said.

According to the World Bank, Colas Madagascar also committed fraud by failing to disclose such meetings to the IFC.

During the two-year debarment, Colas Madagascar and its subsidiary, CMBI SNC, are ineligible to participate in projects and operations financed by the World Bank Group.

As a condition for release from sanction under the settlement agreement terms, Colas Madagascar’s non-sanctioned parent company, Colas S.A., has committed to adapting its group-wide corporate integrity compliance program to reflect the principles set out in the World Bank Group Integrity Compliance Guidelines.

Colas Madagascar and Colas S.A. have agreed to implement and maintain the program as part of their business operations going forward, including at CMBI SNC. Colas Madagascar has also committed to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.

The debarment of Colas Madagascar and CMBI SNC qualifies for cross-debarment by the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the African Development Bank.

France’s Bouygues Bâtiment International, a company specializing in complex construction projects, was also sanctioned Tuesday for a collusive practice as part of the Airports Madagascar Project.

Bouygues received a 12-month conditional non-debarment. The company will remain eligible to participate in projects and operations financed by the World Bank Group institutions provided that it complies with its obligations under the settlement agreement.

Bouygues agreed to adapt its group-wide corporate integrity compliance program and continue cooperating fully with the World Bank Group Integrity Vice Presidency.

January 05, 2022