The World Bank on Wednesday announced the debarment of India-based Kalpataru Power Transmission for 12 months and one day for fraudulent practices connected to power development projects in the Democratic Republic of the Congo (DRC) and Egypt.

The Southern African Power Market Project (SAPMB) was designed to renew and expand high-voltage power lines in the DRC, while the objective of the Egypt Wind Power Development Project (EWPDP) was to develop transmission infrastructure and business models for scaling-up wind power in Egypt. According to the World Bank, Kalpataru Power Transmission omitted the disclosure of intended payments to third parties when submitting bids under the SAPMP in 2010 and the EWPDP in 2012, actions that are considered fraudulent under the World Bank Consultant Guidelines.

The debarment makes Kalpataru Power Transmission ineligible to participate in projects and operations financed by institutions of the World Bank Group. It is part of a settlement agreement under which the company does not contest responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment. Following the initial debarment, the sanction will convert to a conditional non-debarment for five months, the World Bank said.

During this time, the company will be eligible to participate in projects and operations financed by institutions of the World Bank Group if it complies with its obligations under the settlement agreement. “Otherwise, the conditional non-debarment will revert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank Group projects and operations until the conditions for release set out in the settlement agreement are met,” the World Bank said.

According to the World Bank, the company received a reduced sanction period due its cooperation and voluntary remedial actions, “including a voluntary restraint from participating in Bank-financed projects. As a condition for release from sanction under the terms of the settlement agreement, the company commits to continue developing and enhancing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines.”