CHINA Railway Construction Engineering Group has been slapped with a 12-month Conditional Non-Debarment penalty for ‘fraudulent’ practice in its tender for the first phase of the over £350 million Msalato International Airport (MSIA) project in Tanzania.
The sanction, which was announced last week by the African Development Bank (AfDB), is effective for one year from November 7.
It comes after what the AfDB said was ‘a negotiated settlement agreement with China Railway Construction Engineering Group’.
A Conditional Non-Debarment means that the respondent may avoid debarment if it fulfils certain predefined conditions within a specified period.
An investigation conducted by the Office of Integrity and Anti-Corruption of the AfDB established that, ‘in the context of a tender on the Msalato International Airport Project, Phase I, in Tanzania, China Railway Construction Engineering Group failed to exercise sufficient oversight of the bidding process to ensure accurate disclosure in its bid’.
‘The investigation revealed that the information provided pertaining to its experience was inaccurate, which the company admitted constituted a fraudulent practice,’ the AfDB said in a statement.
During the sanction period, China Railway Construction Engineering Group will remain eligible to participate in Bank Group-financed activities, according to the AfDB
‘As part of the settlement, China Railway Construction Engineering Group has agreed to cooperate with the Office of Integrity and Anti-Corruption and with law enforcement agencies and regulatory authorities of African Development Bank member countries in their investigative functions,’ the AfDB statement said.
‘At the expiry of the sanction period, China Railway Construction Engineering Group will only be eligible for release from sanction after it implements an integrity compliance programme consistent with the Bank’s guidelines.’
The ongoing MSIA, which began in 2020, is part of Tanzania’s Development Vision (TDV) 2025.
It was supposed to have been finished over a four-year period, but this was delayed by the covid pandemic.
It is now projected to be ready in 2026 and will form part of the government’s current priority to relocate administrative functions from Dar es Salaam to Dodoma.
Laying the foundation stone for the MSIA, Tanzanian President Samia Suluhu Hassan said: ‘Our target is to increase business competition with other countries in the East African region, Southern African Development Community and the world at large as well as expanding markets for our local products.’
The project is estimated to cost $329.47 million and is co-financed by the AfDB (67.3 per cent), Africa Growing Together Fund, (15.2 per cent) and the Tanzanian government (17.5 per cent).
The airport is set to benefit an estimated regional population of more than 200 million people in East Africa and the international trade networks including business travellers and tourists.
The project is aligned with the AfDB’s 10-Year Strategy (TYS), 2013-2022.
It entails development of a greenfield international airport complete with passenger terminal building, airside pavements, control tower, air navigation equipment and associated operational services—fuel firm, water systems, power and fire station.
