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WASHINGTON, April 16, 2018. The World Bank Group has barred Africa Railways Logistics Limited (ARLL) for two years from participating in its project financing.

Rift Valley RailwaysTwo related companies – Africa Railways Limited (ARL) and Rift Valley Railways Kenya Limited (RVRK) – were also sanctioned but allowed to remain eligible for World Bank financing as long as they comply with a settlement agreement that includes implementing an integrity compliance program.

The World Bank says an employee of RVRK hid the fact he owned a company that was a subcontractor to the railway and then tried to “improperly influence the Customs and port clearance process” for importing RVRK locomotives funded by the International Finance Corporation (IFC), the World Bank’s private sector arm.

According to the Bank, ARLL has acknowledged its responsibility for the underlying corrupt practice and fired its employee. The company has also agreed to meet specified corporate compliance conditions as a condition for its release from debarment.

In 2012 the IFC approved a US$15 million loan to ARL that has a controlling stake in RVRK - operator of the Kenya -Uganda railway line that was privatized in 2006. The IFC investment was used to purchase locomotives, wagons, infrastructure, and cover other costs associated with railway concessions in Kenya and Uganda.

ARL is a subsidiary of Cairo-based private equity company Qalaa Holdings, formerly Citadel Capital. RVRK holds a 25-year concession to operate 2,352 kilometers of track linking the Indian Ocean port of Mombasa to the interiors of Kenya and Uganda, including the Ugandan capital of Kampala.

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