HC Deb 23 March 1994 vol 240 cc246-7W
Mr. Meacher

To ask the Secretary of State for Foreign and Commonwealth Affairs what information he has on the number of cases in which Balfour Beatty has received aid moneys, otherwise than in connection with the Pergau dam project, from(a) the United Kingdom, (b) the World bank or (c) other multilateral organisations in respect of work in developing countries with which the United Kingdom has significant aid ties, which the company has subsequently had to return following failure to complete the work.

Mr. Lennox-Boyd

Under(a) we know of only one aid and trade provision case involving Balfour Beatty in which a project has had to be terminated and aid moneys returned. The project in question was the mini-hydros project in Peru, which was approved in July 1982 involving an ATP grant of £4,843,000. The project was frustrated because the local institution, Electroperu, failed to meet its contractual obligations, did not complete associated civil works and defaulted on its bank loan. The project was also hampered by the local security situation. At no point during the contract did any United Kingdom party fail to fulfil its obligations.

For projects under (b) the World bank and (c) other multilateral organisations, the ODA does not hold details of contracts placed with United Kingdom firms by these institutions and such information could be assembled only at disproportionate cost. The Pergau dam project is 60 per cent. complete and is on schedule for completion in August 1996.

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