CCCC Was Gov Linked Coopreation, Not Just Usual Small Enterprise Company.

CLARIFICATION ON CCCC’s WORLD BANK STATUS

1. In reference to my parliamentary answer at the Dewan Negara on Thursday, I would like to further clarify the question of CCCC as being black listed by the World Bank.

2. As a background, China Communications Construction Company (CCCC) was formed from a merger between several companies including a company by the name of China Road and Bridge Company (CRBC). The majority owner of CCCC is government of People’s Republic of China.

3. CRBC was unilaterally adjudged by the World Bank to have irregularities in a past road construction project in a neighboring country.

4. As a result, the World Bank had barred CRBC from engaging in any road or bridge projects financed by the World Bank.

5. Due to a year 2011 change in the World Bank sanctions system that required successor organizations – through purchase or reorganization – to be subject to the same sanctions applied to the original firm, the successor company CCCC was also made ineligible to engage in any road and bridge projects financed by the World Bank Group

6. This sanction will end in a month’s time on January 12, 2017.

7. The East Coast Rail Link (ECRL) project is not a road or a bridge project and is not funded by the World Bank. Therefore the World Bank sanction does not apply to CCCC’s participation in the ECRL project.

8. CCCC group companies have successful track projects in Malaysia including the Sultan Abdul Halim Muadzam Shah Bridge (2nd second Penang Bridge) completed in 2014.

9. Recently, CCCC was also awarded a RM2 billion reclamation project by a joint-venture company of the Penang State Government.

10. I hope this will clarify the issue to prevent any misleading information from certain quarters.

Datuk Abdul Rahman Dahlan
Minister in the Prime Minister’s Department

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