By Phann Ana and Erik Wasson
THE CAMBODIA DAILY
The World Bank on Wednesday denied claims made by Minister of Rural Development Lu Laysreng that a Bank-funded project administered by his ministry and frozen due to corruption would be restarted by the Bank.
The World Bank said in its statement that the six cancelled contracts within the project have been permanently scrapped and that money disbursed will have to be repaid to the Bank. The other 18 contracts will remain suspended.
The Bank also denied a claim by Lu Laysreng that an additional $1 million in Bank funding would be provided to a Rural Development Ministry roads project, which Lu Laysreng said would begin in 2007.
"The World Bank would like to clarify that the three World Bank-funded projects—the Land Management and Administration Project, the Provincial and Peri-Urban Water Supply and Sanitation Project, and the Provincial and Rural Infrastructure Project—that were suspended on June 6, 2006 will remain suspended," the Bank said.
The suspension will remain "until the Action Plan on each of the three projects is agreed upon and implemented by the government," the Bank added.
On Tuesday, Lu Laysreng said that all 24 contracts in the infrastructure project would be reactivated, including six contracts cancelled for corruption.
Lu Laysreng could not be reached Wednesday.
A senior Rural Development Ministry official said on condition of anonymity that the World Bank had offered an action plan for the government's approval but it had not yet been agreed upon.
The official said that the plan calls for an independent agent to oversee the procurement process on all Bank-funded contracts.
He added that his ministry jumped to conclusions in Lu Laysreng's announcement that the project accounts were being unfrozen.
"The World Bank wants us to accept the action plan...we have moved faster than they wished," he said.
According to a June 6 letter from World Bank Country Director Ian Porter to Finance Minister Keat Chhon, the Bank demanded a prompt repayment of $1.4 million on the six contracts in the Rural Development Ministry's infrastructure project.
In the case of four procurement contracts awarded by the ministry, World Bank investigators found that limitations were placed on the distribution of bid documents to companies interested in the contracts, government officials colluded with bidders to rig bids, officials took bribes to award contracts and other bidders were coerced by government officials to withdraw their bids.
The World Bank said in its statement that the six cancelled contracts within the project have been permanently scrapped and that money disbursed will have to be repaid to the Bank. The other 18 contracts will remain suspended.
The Bank also denied a claim by Lu Laysreng that an additional $1 million in Bank funding would be provided to a Rural Development Ministry roads project, which Lu Laysreng said would begin in 2007.
"The World Bank would like to clarify that the three World Bank-funded projects—the Land Management and Administration Project, the Provincial and Peri-Urban Water Supply and Sanitation Project, and the Provincial and Rural Infrastructure Project—that were suspended on June 6, 2006 will remain suspended," the Bank said.
The suspension will remain "until the Action Plan on each of the three projects is agreed upon and implemented by the government," the Bank added.
On Tuesday, Lu Laysreng said that all 24 contracts in the infrastructure project would be reactivated, including six contracts cancelled for corruption.
Lu Laysreng could not be reached Wednesday.
A senior Rural Development Ministry official said on condition of anonymity that the World Bank had offered an action plan for the government's approval but it had not yet been agreed upon.
The official said that the plan calls for an independent agent to oversee the procurement process on all Bank-funded contracts.
He added that his ministry jumped to conclusions in Lu Laysreng's announcement that the project accounts were being unfrozen.
"The World Bank wants us to accept the action plan...we have moved faster than they wished," he said.
According to a June 6 letter from World Bank Country Director Ian Porter to Finance Minister Keat Chhon, the Bank demanded a prompt repayment of $1.4 million on the six contracts in the Rural Development Ministry's infrastructure project.
In the case of four procurement contracts awarded by the ministry, World Bank investigators found that limitations were placed on the distribution of bid documents to companies interested in the contracts, government officials colluded with bidders to rig bids, officials took bribes to award contracts and other bidders were coerced by government officials to withdraw their bids.
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