The EIB and Sinohydro Corporation Limited reached a Settlement Agreement in relation to EIB loans under five projects. The EIB and Sinohydro have entered into a settlement agreement that addresses misconduct in connection with five projects respectively in Morocco, Georgia, Tanzania, Niger and Seychelles. These projects were financed by the EIB.
As part of this settlement, Sinohydro has agreed to voluntarily contribute €1 million to fund integrity, environmental and/or sustainability projects and Sinohydro will be excluded from EIB-financed projects for 12 months, starting from 30 August 2023. Furthermore, Sinohydro shall continue to implement its rigorous compliance programme and update the EIB on any material developments. Sinohydro will closely cooperate with, and assist the EIB going forward in its efforts to investigate alleged prohibited conduct in EIB-financed projects. Both parties also agreed to exchange best practices in relation to compliance standards and the fight against fraud and corruption.
During the investigation process, Sinohydro has cooperated in full with the EIB and undertook to clarify the matters and provide information and material related to the wrongdoing addressed in full transparency. Also, Sinohydro took all necessary steps to implement several measures for the enhancement of its corporate governance and compliance system to ensure such misconduct is not repeated.