Republic of Albania

Water Resources and Irrigation Project

                    Redacted Report




                               March 2018
                            Statement of Use and Limitations

This Report was prepared by the World Bank Group (the WBG) Integrity Vice Presidency
(INT). It provides the findings of an INT administrative inquiry (the Investigation) into
allegations of corrupt, fraudulent, collusive, and/or coercive practices, as defined by the
WBG for purposes of its own policies, rules and procedures (the WBG’s Framework
regarding Anti-corruption), in relation to the WBG-supported activities. The purpose of
the Investigation was to allow the WBG to determine if the WBG’s Framework regarding
Anti-corruption has been violated.

This Report is being shared to ensure that its recipients are aware of the results of the INT
Investigation. However, in view of the specific and limited purpose of the Investigation
underlying this Report, this Report should not be used as the sole basis for initiating any
administrative, criminal, or civil proceedings. Moreover, this Report should not be cited
or otherwise referred to in the course of any investigation, in any investigation reports, or
in any administrative, civil, or criminal proceedings.

This Report is provided without prejudice to the privileges and immunities conferred on
the institutions comprising the WBG and their officers and employees by their respective
constituent documents and any other applicable sources of law. The WBG reserves the
right to invoke its privileges and immunities, including at any time during the course of an
investigation or a subsequent judicial, administrative or other proceeding pursued in
connection with this matter. The WBG’s privileges and immunities cannot be waived
without the prior express written authorization of the WBG.




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Background

The International Bank for Reconstruction and Development (IBRD)1 and the government
of Albania signed a Euros (EUR) 31 million Loan Agreement for the Water Resources and
Irrigation Project (the Project) in Albania. The Project’s objective is to assist the
government of Albania in: (1) establishing the strategic framework to manage water
resources at the national level and at the level of the Drin-Buna and Semani River basins;
and (2) improving, in a sustainable manner, the performance of Selected Irrigation
Systems. Company A was awarded several contracts (the Contracts) financed under the
Project.

Allegations

The World Bank Group Integrity Vice Presidency (INT) received information that
Company A had submitted false past experience information in its bids for the Contracts.

Methodology

INT’s investigation consisted of, among other steps, a review of Project documents, as well
as documents and statements obtained from Company A, and from the governmental
authorities in charge of the contracts which Company A claimed to have executed.

Findings

Evidence indicates that Company A submitted false past experience certificates and
supporting documents in its bids for the Contracts.

In order to satisfy the bidding documents’ past work experience requirements, Company
A submitted in its bids two certificates, for the completion of Dam A and Dam B,
respectively. Company A also submitted supporting documents such as invoices, payment
orders, and bill of quantities for the contracts claimed.

The Dam A contract was purportedly signed between Company A and the Mayor of City
A. However, evidence indicates that the person identified in the certificate as Mayor of
City A was, in fact, the former Mayor of City C, and had never been the Mayor of City A.
Further, INT obtained evidence from the relevant governmental authorities indicating that
City A was never involved in the construction of Dam A.

Regarding the Dam B certificate, the executing office of the Dam B contract informed INT
that the construction contract for Dam B had been awarded to another company, and that
no portion of the work had been awarded to Company A.

INT’s further review of the certificates submitted by Company A revealed more
irregularities, such as use of falsified stamps, falsified invoices, and falsified payment of
orders.

1
  The IBRD is one of the five institutions comprising the World Bank Group. The International Development
Association and the IBRD constitute the World Bank. The IBRD and the World Bank are used
interchangeably throughout this Report.

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INT sent a letter to Company A, detailing INT’s findings and requesting its response to
those findings. Company A responded, acknowledging its misconduct.

Follow Up Action by the World Bank

The World Bank imposed a sanction of debarment with conditional release on Company
A. The period of ineligibility extends to any legal entity that Company A directly or
indirectly controls.




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