The debarment makes Mega-Mebiko JV LLC ineligible to participate in World Bank-financed projects. It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment.

The project was designed to improve the availability, quality, and sustainability of public water supply services in selected districts of the Syrdarya region of Uzbekistan. According to the facts of the case, Mega-Mebiko misrepresented financial information and experience claims and falsely stated that it had no conflicts of interest, in order to be awarded a project-financed contract, which constitutes fraudulent practices.

The settlement agreement provides for a reduced period of thirty months in light of the company’s admission of responsibility, cooperation, and voluntary remedial actions. As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency. 

The debarment of Mega-Mebiko JV LLC qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.