AfDB slams MHI over integrity in devt projects

The Africa Development Bank has issued a ‘Letter of Reprimand’ to Mitsubishi Heavy Industries Limited.

In a statement on Monday, the bank disclosed that there was sufficient evidence to support the sanctions.

It said, “AfDB decided to issue a Letter of Reprimand against MHI in line with Section 11.2 (a) of the Sanctions Procedures of the African Development Bank Group.

“The African Development Bank considers there is sufficient evidence to support a finding that it is more likely than not that MHI engaged in sanctionable practices (misrepresentation) in the context of Abu Qir tender and contract implementation.”

The AfDB had on February 2, 2021 issued a sanction decision against the Japanese multinational engineering company.

“This matter arises in the context of the Abu Qir 1300 MW Steam Power Project (hereinafter referred to as the “Project”) in Egypt.

“On 15 January 2008, the bank entered into a loan agreement with the Arab Republic of Egypt to finance part of the project which had a broad objective of improving the electricity supply in Egypt. MHI, as part of a consortium, submitted a bid and was awarded the contract,” the bank added.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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