World Bank finds Chinese company committed violations in Bolivian infrastructure project
- China State Construction Engineering Corporation, a key exponent of Beijing’s Belt and Road Initiative, is cited for water pollution and non-compliance with labour laws
- Bank tells La Paz that unless irregularities are addressed, government will not be able to make withdrawals from the account earmarked for the US$230 million project
A World Bank investigation into a US$230 million infrastructure project in Bolivia found numerous violations committed by a large state-owned Chinese construction company, including disregard for local labour laws and environmental damage, complicating work on an enterprise already delayed and over budget.
The bank’s board approved the financing in 2017 and awarded it to the Bolivian Road Administration (ABC), which then commissioned China State Construction Engineering Corporation, the world’s largest construction company, to lead the work.
Government officials and representatives of the World Bank assumed that the work would be completed by November 2023. However, the project remains unfinished and numerous problems have arisen since then.
CSCEC, part of the portfolio of Chinese state-owned enterprises operating worldwide, is active in more than 100 countries, primarily in motorway construction, port management, airport construction and operation and energy distribution.
A key player in Beijing’s Belt and Road Initiative, CSCEC, has signed contracts worth US$220 billion in just the past two years, according to the official BRI website.
CSCEC and the Bolivian road agency did not respond to requests for comment.
