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AfDB bars Chinese firm for 36 months over reported fraud in Zambia power project

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The African Development Bank Group (AfDB) has debarred Hangzhou Fuchuan Electric Equipment Co., Ltd., a Chinese construction company, for 36 months after finding it guilty of engaging in a fraudulent practice during a tender process for a Zambian power project.

In a statement published on October 27, 2025, the Bank said the company was sanctioned “with conditional release, requiring the company to complete an integrity compliance program.”

An investigation by the AfDB’s Office of Integrity and Anti-Corruption revealed that Hangzhou Fuchuan Electric Equipment Co., Ltd. falsified manufacturers’ authorisations in its bid for the construction of electricity infrastructure and the supply of equipment under the Itezhi-Tezhi Hydropower and Transmission Line Project in Zambia.

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According to the Bank, the Itezhi-Tezhi project involves the construction, operation, and maintenance of a hydropower plant at the Itezhi-Tezhi dam on the Kafue River, along with a transmission line to evacuate power to substations.

“Hangzhou Fuchuan Electric Equipment Co., Ltd. prepared falsified manufacturers’ authorisations for submission during the tender process,” the AfDB said.

During the debarment period, the company and its affiliates will be ineligible to participate in any Bank Group-financed projects.

The Bank further stated that after the 36-month sanction, the firm will only be allowed to resume participation upon demonstrating “satisfactory completion of an integrity compliance program consistent with the Bank’s guidelines.”

The AfDB noted that its Office of Integrity and Anti-Corruption “is responsible for preventing, deterring and investigating allegations of corruption, fraud and other sanctionable practices in Bank Group-financed operations.”

It also encouraged both Bank staff and the public to report any suspected sanctionable practices through its secure channels.

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