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Overview

Notice regarding malpractice with respect to Economic Development
Cooperation Fund (EDCF) projects

  • According to the relevant regulation of EDCF, EDCF shall take the following actions to suppliers, consultants, bidders or other persons concerned (hereinafter referred to as the "Entities") who engage in corruption, fraud, defective design and/or construction with regard to an EDCF Project.
    • Declaration of their ineligibility to participate in EDCF-financed activities
    • Disclosure of their ineligibility on the official website of EDCF and notification of the ineligibility to the government of the borrower's country
  • The entities whose action with regard to an EDCF project falls under one of the following shall be debarred for not more than 3 years from participating in EDCF-financed activities:
    • Where the borrower raises an issue in writing on the defect of goods and services provided by the company in question, and the Bank determines it reasonable; and
    • With regard to an EDCF-financed project, Where the information provided by the government of the borrower's country or etc. is confirmed to be truthful and falls under Article 76 (1)-1, 2, 4, 4-2, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, and 17 of the Enforcement Decree of the Act on Contracts to Which the State is a Party.

    * Reference : Article 76 (1) of the Enforcement Decree of the Act on Contracts to Which the State is a Party

    The English text of the Article is not an official translation. In case of discrepancy, the Korean version shall prevail

    1. 1. A person who has, in the execution of contractual obligations, performed deficiently, crudely or unreasonably, or committed a malpractice;
    2. 2. A person who has concluded a subcontract, in violation of the provisions concerning the limitation of the subcontract (excluding the case of violating the liability for notification of the subcontract) under the Framework Act on the Construction Industry, the Electrical Construction Business Act, the Information and Communications Construction Business Act, or other Acts and subordinate statutes, and a person who has concluded a subcontract without the approval of the government agency which has placed the order or has changed the conditions of the subcontract approved by the said government agency;
    3. 4. A person who has, in the contract for the provision of survey and design services or of cost accounting services, failed to appropriately calculate the amount payable for the survey and design or cost accounting by intention or gross negligence;
    4. 4-2. A person who has, in the performance of a service contract for the provision of a feasibility study under Article 47 of the Construction Technology Promotion Act, inflicted damages on the procuring agency by improperly carrying out feasibility studies such as demand forecasts, etc. either through intent or gross negligence;
    5. 5. A person who has inflicted an injury on the general public by neglecting safety measures while fulfilling any contract or a person who has inflicted a serious injury, such as death, on employees, etc. by neglecting safety and health measures at a workplace under the Occupational Safety and Health Act;
    6. 6. A person who has, without any just cause, failed to conclude or perform a contract (including the performance of matters concerning an incidental tender under Article 19, matters concerning the subcontract management plan and the performance plan for the working conditions of outsourced personnel submitted for the review of the contract performance capability under Article 42 (5) and matters concerning a joint contract under Articles 72 and 72-2);
    7. 7. A person who has discussed and agreed upon the tendered price, amount of orders, or contents of a contract, etc. in advance with bidders or contract parties, or has committed an act of collusion for the purpose of ensuring a successful tender by a specific person in the competitive tender, contract conclusion or course of implementation;
    8. 8. A person who has forged or altered documents concerning a tender or contract (including any written public certification provided for in subparagraph 8 of Article 2 of the Digital Signature Act in case where the documents for the tender are submitted using the electronic procurement system) or used them unjustly, or a person who has produced the false document;
    9. 9. A person who has executed an invalid tender by intent;
    10. 10. A person who has, in relation to a bid, successful bid, or conclusion of a contract and execution thereof, offered a bribe to the relevant public official (including members of the International Contract Dispute Conciliation Committee under Article 29 (1) of the Act, the Committee for Examining the Adequacy of Tender Prices under Article 42 (7) of this Decree, the Committee for Evaluating Written Proposals under Article 43 (8) of this Decree, the Contract Council under Article 94 (1) of this Decree, the Central Construction Technology Deliberation Committee, the Special Construction Technology Deliberation Committee, and the Technology Advisory Committee under the Construction Technology Promotion Act);
    11. 11. A person who has failed to participate in the bidding (excluding any bidding for which a written bidding is submitted by using the electronic procurement system or the information processing unit designated and publicly announced by the head of each central government agency pursuant to Article 39 (1)) three times or more during the corresponding fiscal year without just cause even after having submitted a written application for participation in the tender or a written consent to participation in the tender;
    12. 12. A person who has interfered with participation in the tender or hinders a successful bidder from concluding the contract and executing it;
    13. 13. A person who has interfered with the performance of duties in the course of supervision or inspection;
    14. 14. A person who has, without any justifiable ground, failed to submit in full or part the documents which are required for an examination of capabilities to perform the contract pursuant to Article 42 (1), or a person who has abandoned the examination after submitting the required documents before a successful bidder is finalized;
    15. 14-2. A person who has, without any justifiable ground, failed to submit in full or part the documents which are required for an examination of the adequacy of bidding prices pursuant to Article 42 (4) after he/she was chosen as a participant in the examination, or a person who has abandoned the examination after submitting the required documents before a successful bidder is determined;
    16. 15. Where a successful bidder is determined for the package deal tender under Article 87, a person who has failed to submit a written execution design within the time limit without any justifiable reasons after being selected as a person suitable for the execution design;
    17. 17. A person who has caused damages to the State in a tender or a successful bid or during the process of the conclusion or performance of the contract by deceit or other fraudulent means;
  • When the entities are under sanctions by an MDB for their misconduct, EDCF shall forbid them from participating in EDCF-financed activities until the sanction period imposed by the MDB expires.
  • EDCF may notify the government of the borrower's country of entities which commit actions that fall under one of the following:
    • acquire or leak bidding information before the bid invitation
    • acquire a proposal by a competitor during the bidding
    • violate the procurement contract or the consultant employment contract
    • delay the project by raising a groundless complaint
    • excessively delay the process of a project without a just reason, etc.

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