EBRD announces settlement with Bulgarian company PPM

• The EBRD and Project Planning and Management Ltd reach settlement related to fraudulent practice in EBRD-financed project
• Sanction consists of 12-month debarment
• Settlement reduces debarment period due to company’s cooperation, voluntary disclosure and other mitigating factors

The European Bank for Reconstruction and Development (EBRD) has announced a 12-month debarment of Bulgarian company Project Planning and Management Ltd (PPM) and three of its subsidiaries in connection with fraudulent practice in an EBRD-financed project.

The settlement relates to the Bazar-Korgon Water Sub-Project, which supports the modernisation and centralisation of water supply services in the city of Bazar-Korgon and neighbouring settlements in the Kyrgyz Republic.

An investigation by the EBRD’s Office of the Chief Compliance Officer (OCCO) found that PPM submitted falsified documentation regarding its key experts’ fees in relation to a tender for the project, in an attempt to secure the contract.

The settlement agreement provides for a significantly reduced sanction in light of several mitigating factors, namely PPM’s admission of culpability, and its cooperation and voluntary disclosure during settlement negotiations. This enabled the Bank to identify a prohibited practice that had previously been unknown and highlighted systemic integrity risks in another EBRD-financed project. PPM’s voluntary restraint from participating in other EBRD-financed projects was also considered.

The debarment makes PPM and its three affiliates ineligible to participate in projects and operations financed by the EBRD for 12 months.