The World Bank announced on Tuesday, in a press release, the exclusion of Colas Madagascar S.A. from all its projects for a period of two years. This sanction is the result of an investigation carried out by the Bank Group’s Integrity Vice-Presidency concerning the expansion and renovation of the Ivato and Fascène airports in Nosy Be. The Madagascar-based construction company is alleged to have resorted to “collusive and fraudulent practices” in connection with the Airports Madagascar project.
The sanction also involves its subsidiary CMBI SNC and will make them ineligible to participate in projects and operations financed by the World Bank Group institutions. This is in accordance with the “settlement agreements under which the company acknowledges responsibility for the underlying practices subject to sanctions”, and to which it has committed “to respect the conditions of compliance”.
The International Finance Corporation (IFC) partially financed the design and development of the expansion and renovation of Madagascar’s main airports. In its statement, the World Bank said Colas Madagascar engaged in collusive practices by holding improper meetings with government officials between February 4, 2015, and May 4, 2015, during the bidding process for the 28-year contract to operate the airports. Colas Madagascar S.A. also committed a fraudulent practice by failing to disclose these meetings to the IFC.
The World Bank Group also announced in the same case “a 24-month sanction for the French company ADP International S.A.” (formerly ADP Management), an airport developer, operator and manager. This subsidiary of “Aéroports de Paris S.A.” is also accused of collusive and fraudulent practices by attending “irregular meetings with government officials organized by Colas Madagascar S.A.
The French company “Bouygues Bâtiment International” has also been sanctioned by the World Bank Group for its participation in these irregular meetings with government officials. Nevertheless, it remains eligible for World Bank Group projects and operations, but under certain conditions.
Since December 2016, the Ravinala Airports Consortium comprising Aéroport de Paris, Bouygues Bâtiment International, Colas Madagascar and Meridiam, has become the new manager of Ivato and Nosy-Be airports, following the concession contract signed in July 2015 between this company and the government. These two most profitable and busiest airports in Madagascar were previously managed by Adema. This project was estimated at 220 million euros.
After several months of differences and negotiations, an amendment to the contract was signed by the executive and the consortium in mid-December. Ravinala Airports had to agree to the revision of several points of the contract in favor of the Malagasy side.
