Chinese Construction Company Accused of Fraud

China Harbour Engineering Company, one of the bidders in the tender for Line 2 of the Panama Metro and a contractor for road works in Costa Rica, is ineligible to participate in projects financed by the World Bank.

Wednesday, March 4, 2015

Given the criticisms over its main involvement (60%) in one of the consortia which submitted bids for the construction of the Panama Metro Line 2, a spokesperson for China Harbour Engineering Company (CHEC) Latin America argued that ".. . The temporary disqualification applied by the World Bank to the holding company China Communications and Construction Company (CCCC) does not affect its ability to receive funds from the lender "... "Under the sanction, CCCC is ineligible to participate in any road and bridge project funded by the World Bank group until January 12, 2017."

Corina Briseño, project director for CHEC Latin America warned that "... The World Bank does not make any reference to railway projects ... " noting that " ... the suspension comes as collateral for another company (China Roads and Bridges Corporation), which CCCC bought and has nothing to do with CHEC ".

CHEC has already secured in Costa Rica a $485 million contract for the redevelopment of a major highway. This contract is tied to an agreement between the Chinese and Costa Rican governments to finance the project, which has already received parliamentary approval.

More on this topic

Road to Limon to Cost $40 million More

October 2017

The final designs presented by the Chinese company include the construction of nine bridges and 27 kilometers of marginal roads, raising the total cost of the work from $465 million to $505 million.

Spokespeople for China Harbor Engineering Company (CHEC), in charge of the project, explained that in the review of the 32 bridges on the 107 km stretch of road that will be rebuilt there are 9 that are in poor condition and must be demolished. In addition to the nine bridges, the designs presented by CHEC include "... 27 kilometers of marginal roads; in the original contract the construction of 26 kilometers was established."

Costa Rica: $485 million for Controversial Road Works

February 2015

Without having read the contract with the construction company and ignoring final costs, the Legislature has approved the loan with the Chinese government to finance the extension of the road to Limón.

The loan with the government of China for $485 million is tied to a commercial contract with the Chinese state-run construction company CHEC, highly questioned not only technically but at the legal level, since it is one of the companies "... included in the list of companies ineligible for dealing with the World Bank until 2017 because of fraudulent practices in the Philippines ".

No US Construction Firms Prequalified for Metro Tender

February 2015

While suspicions grow in the media about the companies in the tender for Line 2 of the Panama Metro, the absence of US companies is surprising.


An article in reports that "... In the best value tender proposals have been submitted by three consortia composed of companies from China, Spain, one from Mexico, one from Brazil and one from Peru.

Costa Rica: Questions Over The Chinese Company That Will Build Highway

November 2013

The Costa Rican government has signed a $395 million loan conditional on the award of a contract to a construction company that has been blacklisted by the World Bank.

China Harbour Engineering Company (CHEC) will expand the stretch of 107 kilometers on the road to Limón, despite questions having been asked in four countries regarding fraud and bribery.

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