How does cross-debarment work?
Currently, firms are eligible to participate in ADB-financed activity unless debarred by ADB in relation to ADB-financed projects or contracts. This means that entities involved in any of the prohibited practices (fraud, corruption, collusion, coercion) with regard to projects financed by other MDBs, and implemented in non-member countries, would still be eligible to compete for ADB-financed projects, as long as they adhere to ADB policies and guidelines. When the Agreement enters into force, entities or individuals debarred by one MDB for more than one year risk similar treatment by the other MDBs. For example, if a firm or individual is debarred and publicized by ADB, the other participating MDBs will cross-debar the same firm or individual, and it will not be able to participate in projects or activities financed by those MDBs for the applicable sanction period.
