The Office of Institutional Integrity of the Inter-American Development Bank (IDB) Group announced today a settlement agreement with Odebrecht S.A., Odebrecht Engenharia e Construção S.A., and CNO S.A., whereby the companies recognize CNO’s involvement in prohibited practices in two IDB-financed projects, which contradict the institution’s policies.

As a result of the settlement agreement, it was agreed a contribution of US$ 50 million, to be paid starting in 2024, to NGOs and social projects that support improvement of the quality of life of vulnerable communities in the IDB’s developing member countries. Furthermore, CNO will not be able to participate in projects financed by the IDB Group before August 1st, 2024 and it will be subject to an additional period of conditional non-debarment until August 1st, 2028.

The settlement agreement with the IDB is in addition to agreements Odebrecht S.A. and some of its subsidiaries have already executed with other institutions in Brazil and abroad, including with the World Bank, in January 2019. Since December 2016, settlement agreements were signed in Brazil with the Federal Public Prosecutor’s Office (MPF), Office of the Comptroller General (CGU), Attorney General of Brazil (AGU), Administrative Council for Economic Defense (CADE), and the Executive Branch of States and Municipalities. The company also signed settlement agreements with authorities of seven other countries – the United States of America, Switzerland, Dominican Republic, Panama, Ecuador, Guatemala and Peru – and is still in negotiations with other countries that were part of the Company’s collaboration efforts.