WORLD BANK BARS SEVEN CONSTRUCTION COMPANIES

BEIJING, Jan 15 (Bernama) -- Four Chinese companies are among seven barred
by the World Bank from its projects after a corruption investigation into the
bidding of road projects in the Philippines.

The other three are Filipino firms and one of the owners, the Bank said in a
statement on its website on Wednesday.

The bank said the eight were found "engaging in collusive practice".

A probe by the World Bank's integrity vice-presidency uncovered evidence of
a major cartel involving local and international firms bidding on contracts
under phase one of the Philippines National Roads Improvement and Management
Program, known as NRIMP 1, the statement said.

The bank said it had stopped US$33 million from being awarded and no funds
were disbursed to the firms.

The road project is partially financed by a US$150 million loan from the
World Bank.

China Road and Bridge Corporation (CRBC) was debarred for eight years, China
State Construction Corporation and China Wu Yu Company Limited for six years
each, and Chinese Geo-Engineering Corporation for five years.

The Filipino parties involved were E. C. de Luna Construction Corporation
and its sole owner, Eduardo C. de Luna, who were debarred permanently -- the
first such action by the bank since 2004 -- while Cavite Ideal International
Construction and Development Corporation and CM Pancho Construction Inc. were
each debarred for four years.

"This is one of our most important and far-reaching cases and it highlights
the effectiveness of the World Bank's investigative and sanctions process," said
Leonard McCarthy, the World Bank Integrity vice-president.

Last year, South Korea's Dongsung Construction Company Limited was
separately barred for four years for fraudulent and corrupt practices over
the same project.

The China.org.cn website said CRBC, the overseas arm of state-owned
construction giant, China Communications Construction Company Ltd, had
undertaken more than 600 projects abroad and had branches in about 50
countries.
-- BERNAMA