World Bank banned CHEC

Sunday, 23 February 2014 Posted on Tue, 05/06/2012 - 15:04 in

World News

(CNS : T!e C!inese "o#$any t!at t!e Cay#an %s&ands 'o(ern#ent is ne'otiatin' )it! o(er t!e de(e&o$#ent o* "ruise bert!in' *a"i&ities !as been banned by t!e +or&d ,an- be"ause o* *raud and "orru$tion. T!e $arent "o#$any o* C!ina /arbour 0n'ineerin' Co#$any (C/0C , C!ina Co##uni"ations Constru"tion Co#$any 1i#ited (CCCC , !as been barred *ro# bein' in(o&(ed in $ro2e"ts *inan"ed by t!e '&oba& bansin"e 2003 under its *raud and "orru$tion san"tionin' $o&i"y. T!e re(e&ation )as #ade by t!e 4a#ai"a5s Contra"tor-6enera&, 6re' C!ristie, )!o !as raised "on"erns about de(e&o$#ents in t!at "ountry )!i"! )ere 'i(en to t!e ,ei2in' based *ir#. Cay#an %s&ands Pre#ier 7"8ee(a ,us!, )!o is *a"in' o$$osition *ro# t!e 98:s Forei'n and Co##on)ea&t! ;**i"e o(er !is de"ision to ne'otiate )it! C/0C outside internaitona& $ro"ure#ent standards, !as insisted sin"e !e #o(ed into e<"&usi(e ta&-s )it! t!e *ir# &ast year t!at it is t!e best "o#$any *or t!e 2ob. /o)e(er, t!e re(e&ations about t!e +or&d ,an-:s ban on t!e *ir# adds *ue& to t!e #ountin' "ontro(ersy in t!e re'ion re'ardin' t!e *ir# and its in(o&(e#ent in (arious Caribbean "a$ita& $ro2e"ts. T!e ban- !as stated t!at any *ir# dire"t&y or indire"t&y "ontro&&ed by CCCC is ine&i'ib&e *or any +or&d ,an- *inan"ed "ontra"ts re&ated to roads and brid'es durin' t!e $eriod 12 4anuary 2003 to 12 4anuary 201=, )!i"! auto#ti"a&&y e<tends to C/0C as it is a #a2or subsidary o* CCCC. %n its e**orts to "o#bat "orru$tion in $ub&i" se"tor "ontra"tin' t!e ban- $ro!ibits #e#ber "ountries *ro# a)ardin' +or&d ,an--*inan"ed "ontra"ts to any o* t!e *ir#s or indi(idua&s t!at it !as san"tioned. C!ristie !as >uestioned )!et!er t!e 'o(ern#ent in 4a#ai"a !ad identi*ied C/0C5s debarred status.

No) t!at it is -no)n t!at t!e +or&d ,an-, in t!e 2udi"ious a$$&i"ation o* its anti-*raud and anti-"orru$tion $o&i"ies in $ub&i" "ontra"tin', !as !ad "ause to san"tion and to debar CCCC and C/0C *ro# re"ei(in' +or&d ,an- *inan"ed "ontra"ts, t!e ob(ious >uestion t!at no) arises is )!et!er t!is is so#et!in' t!at t!e 'o(ern#ent, as a #atter o* 'ood, $rudent and di&i'ent business $ra"ti"e, intends to be 'uided by in t!e a)ard o* its o)n "ontra"ts t!at are *inan"ed *ro# non-+or&d ,an- sour"es,? C!ristie said, addin' t!at t!e re(e&ation #ust be set a'ainst t!e ba"-dro$ o* ot!er "ontro(ersies surroundin' C/0C. @""ordin' to t!e 4a#ai"an #edia, C!ina /arbour 0n'ineerin' Co#$any (C/0C !as re2e"ted t!e "on"erns, stressin' t!at it )as not in(o&(ed in and !ad ne(er been in(o&(ed in any a"ti(ity t!at !as attra"ted san"tions by t!e +or&d ,an-. %t said t!e issue re&ated to 2003 and in(o&(es t!e C!ina Aoad and ,rid'e 6rou$, )!i"! )as &ater ta-en o(er by CCCC in 2005. C/0C "&ai#ed its $arent "o#$any "a#e under t!e debar#ent in 2011 based on "!an'es #ade at t!at ti#e to t!e +or&d ,ansyste#. T!e Cay#an $re#ier si'ned an 7;9 )it! C/0C &ast year and !as been in ne'otiations e(er sin"e to bui&d t)o *in'er $iers in 6eor'e To)n )it! an e<tensi(e u$&and de(e&o$#ent, a )e&& as a $ier in +est ,ay and t!e rede(e&o$#ent o* t!e 2etty in S$otts as a bad )eat!er a&ternati(e *or "ruise s!i$s to an"!or T!e ta&-s !a(e been e#broi&ed in "ontro(ersy be"ause o* "on"erns about t!e *ir#, t!e )ay it )as se&e"ted by t!e $re#ier and e<a"t&y !o) t!e es"a&atin' "ost o* t!e $ro2e"t )i&& u&ti#ate&y be #et. C/0C !as a'reed to desi'n, bui&d and *inan"e t!e $ro2e"t and re"ou$ its in(est#ent o(er a $eriod o* *i*ty years but it is not "&ear )!at s!are o* t!e $ort *ees, )!i"! nor#a&&y 'o to t!e $ub&i" "o**ers, )i&& be redire"ted to C/0C.

Port City developer defends itself vigorously No outlay by Colombo govt., 20 ha. freehold for develo er
February 22, 2014, 5:50 $# An artist impression of the Colombo City Port Project. China Harbour Engineering Corporation (CHEC), handling the mega Colombo Port

City De elopment, yesterday issued a detailed statement titled !Clarification on the Colombo Port City Project! igorously defending itself against arious allegations and statements recently made against the company. "riting from an office on the "est #o$er of the "orld #rade Centre at Echelon %&uare, CHEC Port City Company (P t) 'imited said that its parent, China Communication Construction Company 'imited (CCCC) is a listed company in the Hong (ong %toc) E*change and the %hanghai %toc) E*change and a +ortune ,-- company ran)ing top in E./0s #op 11, international contractors for years. CHEC described the project alued at 2%D 3.4 billion as 55the single biggest foreign direct in estment to date to %ri 'an)a00 $ith the de elopment of 166 ha of land by reclamation. !31, ha of this de elopment $ill belong to the 7o ernment from the date of project completion,! the letter said. 55A further 88 ha $ill be o$ned by the 7o ernment but leased to the CCCC on a 99:year lease as part consideration for its in estment. #he balance 1- ha of this de elopment $ill be gi en to CCCC on a freehold basis as a return on their in estment.! #he 7o ernment of China is the majority shareholder of CCCC $hich in 1--, $as incorporated as a holding company under $hich the CHEC, established in 398- $as brought under, the project company said. #he Colombo Port City Project comes under the holding company CCCC and the implementation under the CHEC. /egarding the blac)listing by the "orld ;an) of a related company, the statement said that China /oad and ;ridge Company (C/;C) group established in 39<9 had also been brought under CCCC in 1--,.Prior to becoming a subsidiary in 1--1, C/;C had been in ited to bid for the Philippines .ational /oad =mpro ement and >anagement Project. !During the course of bidding for this project the "orld ;an) unilaterally announced sanctions on C/;C. #his decision is being disputed by CCCC and a clarification announcement had been issued to the Hong (ong %toc) E*change in ?anuary 1--9,! the statement said. !%ubse&uently, under the "orld ;an) sanctions regime $hich ensures that successor organi@ations A through purchase or reorgani@ation A $ill be subject to the same sanctions applied to the original firm, in ?uly 1-33, the "orld ;an) announced that the sanctions imposed on C/;C in connection $ith the said Philippines .ational /oad =mpro ement and >anagement project in 1--1 $ould apply to CCCC as $ell. An appeal $as also submitted to the "orld ;an).! !CHEC has been partnering %ri 'an)a in major de elopment projects for the past 3, years e en before the company became a subsidiary of CCCC. Bne of the most significant projects is the country0s first major high$ay, the Colombo:>atara e*press$ay. CHEC belie es that %ri 'an)a has great potential to become a regional business center for %outh Asia and continue to partner in mega de elopment project such as the Colombo Port city,! the statement said.

=t also said that unli)e pre ious projects underta)en by CHEC in %ri 'an)a, this ne$est in estment is fully funded by e&uity from CCCC and funds raised by CCCC $ith no fund from the 7o ernment of %ri 'an)a or any go ernment guarantee. +urther, 55there $as no sound basis for direct andCor indirect allegations made that Chinese companies, in particular CCCC or CHEC may engage in corrupt practices,! the statement said. !%pecific legislati e initiati es had been ta)en in China to lea e no room for corrupt practices by Chinese companies.! =t said as an e*ample the Eighth Amendment to the Criminal 'a$ of the P/C $hich came into force on >ay 33, 1-333 specifically tac)les this issue and ma)es it a crime to ma)e payments to non P/C go ernment officials and to officials of international public organi@ation for any illegitimate commercial benefits.