CDB provides loan for Government Financial Management Platform Project in Ecuador (Linked to Record ID#36002 and #58827)

Project narrative

On September 9, 2015, the Government of Ecuador signed a $221,732,720.81 commercial contract with China CAMC Engineering Co. Ltd for the Government Financial Management Platform Project. The platform was intended to house different government entities with financial management responsibilities in a single building. The platform was to be located in the North Sector, Amazonas Avenue, Japan Street, and between National Union of Journalists Street, Juan José Villalengua Street. Some of the entities to be housed in the building included the Ministry of Finance, Internal Revenue Service, and the Central Bank of Ecuador. The platform was intended to house 4600 public officials. Then, on September 23, 2015, Ecuador's Ministry of Finance requested authorization from China Development Bank (CDB) to finance the project with a $197,975,648.58 subsidiary loan under Tranche C of the $2 billion loan agreement that CDB and Ecuador's Ministry of Finance signed in December 2012 (captured via Record ID#36002 and Record ID#58827). The General Comptroller of the State noted at the time that the project did not meet the eligibility conditions for Tranche C. However, on October 12, 2015, CDB exercised its discretion and included the Government Financial Management Platform Project in a list of eligible projects. The project's groundbreaking ceremony took place on September 24, 2015. However, the project was eventually engulfed in a corruption scandal. The United States Government provided evidence to the Ecuadorian Prosecutor's Office that China CAMC Engineering Co. Ltd. provided a $1.3 million bribe to Esteban Celi De la Torre -- the brother of Ecuador's Deputy Comptroller Pablo Celi De la Torre -- through two Panamanian shell companies (Ranvill Investment SA and Forban Holding SA).