Frequently Asked Questions - Cross Debarment

 

What does Cross Debarment mean?

 

Under a new agreement entities debarred by one Multilateral Development Bank (MDB) may be sanctioned for the same misconduct by other signatory MDBs.

 

Which other MDBs have currently signed the cross-debarment agreement?


The new agreement includes the African Development Bank Group, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank Group, and the World Bank Group.

 

What impact does this have on the World Bank Group sanctions process?


The agreement does not affect our sanctions process as such. However, it allows each signing bank to respect and enforce decisions of the other signatory MDBs, which will ensure greater consistency among the MDBs and avoid the anomalous situation of an entity debarred by one MDB, to freely participate in projects financed by another MDB.

 

When does cross debarment become effective for IFC engagements?


Cross-debarment is now in effect for IFC engagements among World Bank Group, European Bank for Reconstruction and Development (EBRD), and Asia Development Bank (ADB). Cross-debarment effectiveness is also anticipated for Inter American Development Bank (IADB) and African Development Bank (AfDB). It will apply to all existing investment and advisory engagements that are subject to the WBG sanctions process and to all new engagements.

 

Is this going to change the list of sanctionable practices?


The agreement does not change the definition or types of sanctionable practices. These are common to all MDBs (with the exception of obstructive practices, which is included in the Bank Group definitions but is not part of the sanctionable practices covered by the cross-debarment agreement).