World Bank imposes sanctions on French airport operator

The bank has imposed a 12-month debarment and a 12-month conditional non-debarment on the operator.

IFC agreed to partially finance the expansion and overhaul of Ivato International Airport and Fascene Airport. Credit: JialiangGao www.peace-on-earth.org / Wikimedia.

The World Bank Group has imposed a 24-month sanction on French airport developer, operator and manager ADP International SA, as it was found to be involved in collusive practices in the Airports Madagascar Project as well as fraudulent practices in the Zagreb Airport Project.

The sanction followed a probe carried out by the World Bank Group’s Integrity Vice Presidency.

Backed by IFC, the Airports Madagascar Project offers partial financing for the expansion and revamp of Ivato International Airport (TNR) and Fascene Airport (NOS) in Madagascar.

In the tender for the 28-year contract to run the airports, ADP International was found attending ‘improper meetings with government officials’ from 4 February to 4 May 2015.

In the Zagreb Airport Project investigation, the company did not divulge to IFC that fees it paid to a retained agent, related to the concession contract, were partly transferred to a non-contracted consultant. These fees were paid between 10 June 2011 and 12 March 2014.

Zagreb Airport Project, also supported by IFC, offers partial financing for a 30-year concession contract to design, build and operate a new terminal within Zagreb International Airport (ZAG).

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Based on the probe, the bank has imposed a 12-month debarment followed by a 12-month conditional non-debarment on ADP International.

Under the 12-month debarment period, ADP International and its sanctioned subsidiaries will not be allowed to take part in projects and operations funded by institutions of the World Bank Group.

World Bank said that a settlement agreement has been reached with the company, which has agreed to fulfil the conditions for release from debarment.

At the end of the 12-month debarment, ADP International will be allowed to enter a 12-month conditional non-debarment period only if it meets certain conditions set out in the settlement agreement.

Once all the conditions are met, the French company will be eligible to participate in projects and operations financed by institutions of the World Bank Group.

World Bank said that the settlement agreement also has the option for a reduced debarment period, based on the company’s voluntary remedial measures.

Additionally, World Bank has imposed a two-year debarment on Madagascar-based construction company Colas Madagascar in relation to collusive and fraudulent practices in the Airports Madagascar Project.