The Respondent Firm (“Respondent”) submitted offers in multiple bidding processes under the Rural Potable Water Program (the “Program”) in Honduras. The Office of Institutional Integrity (“OII”) submitted a Statement of Charges and Evidence against the Respondent, among others, for allegedly engaging in a collusive practice related to the Program. OII’s specific allegation against the Respondent was that during the bidding processes, the Respondent entered into an arrangement with other prospective bidders to improperly influence the award of the Bank-financed contracts financed under the Program. According to OII, the Respondent and other bidders coordinated their offers in the respective bidding processes to simulate competition, with the aim to direct the contracts to specific bidders. Consequently, and in accordance with the Sanctions Procedures, the Sanctions Officer (“SO”) issued a Notice of Administrative Action (“Notice”) to the Respondent. In the Response to the Notice, the Respondent denied the allegations presented by OII.

The SO determined that it was more likely than not that the Respondent engaged in a collusive practice. As a result, the SO imposed a sanction of debarment for a period of three (3) years, during which time the Respondent will be ineligible to participate or be awarded contracts for projects or activities financed by the Bank Group.

The Respondent did not appeal the SO’s Determination to the Sanctions Committee during the prescribed appeal period. In accordance with the Sanctions Procedures, the imposed sanction entered into force and the Bank provided notice of this declaration of ineligibility to the other Multilateral Development Banks that are a party to the Agreement for Mutual Enforcement of Debarment Decisions.