WASHINGTON- The World Bank said on Wednesday it has sanctioned a state Chinese state electric engineering group and its subsidiary over fraudulent practices in a power project in Zambia, setting out new conditions for them to participate in bank-financed projects.
The action bars China Electric Design and Research Institute Co Ltd from participating in bank financed projects for up to 18 months, with the ability to meet new compliance conditions.
The firm's parent company, China National Electric Engineering Co Ltd, was allowed to continue to participate in projects under a settlement agreement, but could be banned if it fails to meet agreed conditions, the bank said.
(Reporting by David Lawder) ((David.Lawder@tr.com; +1 202 354 5854; Reuters Messaging: david.lawder.thomsonreuters.com@reuters.net))
