The World Bank handed out the bans on Thursday following an investigation of collusion among bidders for a road project funded by the multilateral lender. The bank subsequently cancelled the award of US$33 million (S$49 million) worth of contracts.

'Following the World Bank action against companies involved in a Philippine road project, the Department of Public Works and Highways is temporarily suspending the involved companies from bidding for locally-funded or foreign-assisted projects,' Budget Secretary Rolando Andaya said.

The government is to decide within 15 days whether to impose a longer blacklist, he said.

Mr Andaya also said special prosecutors are set to wrap up within three weeks a separate inquiry into the possible criminal liability of government officials who handled the project for which the World Bank withheld financing.

'We remain committed in the fight against corruption in government procurement,' he said.

He said recent government efforts 'have already paved the way for the approval of new World Bank loans for road improvement,' but did not give details.

The World Bank debarred China Road and Bridge for eight years, China State Construction and China Wu Yi for six years, and China Geo-Engineering for five years.

Philippine firm EC de Luna Construction and its sole proprietor, Eduardo de Luna, were both debarred indefinitely - the first permanent debarments since 2004, the bank said.

The other Philippine firms, Philip-Cavite Ideal International Construction and Development and CM Pancho Construction, were each debarred for four years.

Another South Korean firm, Dongsung Construction, was separately debarred in August 2008 for four years for alleged fraudulent and corrupt practices in relation to the project, the bank said. -- AFP