Overview

China Eximbank provides $150 million buyer's credit loan for Railroad Rehabilitation Project

Commitments (Constant USD, 2023)$337,505,238

Commitment Year•2003Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Dec 15, 2003

Start (actual): Apr 15, 2004

First repayment: Jun 14, 2006

Last repayment: Dec 12, 2014

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

This project involved the rehabilitation of two railway segments: Puerto Cabello-Barquisimeto (137 km in length) and Yaritagua-Acarigua (67 km in length). More detailed locational information can be found at https://www.openstreetmap.org/way/134382623#map=14/10.0936/-69.1945 and https://www.openstreetmap.org/way/543318857#map=16/10.0826/-69.1464 and https://www.openstreetmap.org/way/816704433#map=16/10.0687/-69.1136 and https://www.openstreetmap.org/way/816704435#map=14/10.0800/-69.0880 and https://www.openstreetmap.org/way/542025088#map=13/10.2047/-68.7450 and https://www.openstreetmap.org/way/856279166 and https://www.openstreetmap.org/way/816702771#map=13/10.3866/-68.6602 and https://www.openstreetmap.org/way/525543437#map=15/10.4602/-68.2817 and https://www.openstreetmap.org/way/30184811 and https://www.openstreetmap.org/way/47070842 and https://www.openstreetmap.org/way/366126634 and https://www.openstreetmap.org/way/47070738#map=14/10.4691/-68.0957 and https://www.openstreetmap.org/way/30184822 and https://www.openstreetmap.org/way/847405055#map=14/10.4688/-68.0494 and https://www.openstreetmap.org/way/847405054 and https://www.openstreetmap.org/way/115751597#map=16/10.4674/-68.0056

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

Government of Venezuela

Implementing agencies

State-owned companies

Shandong Energy Group Co., Ltd. (SDE) (formerly Yankuang Group Corporation Limited)

Loan desecription

China Eximbank provides $150 million buyer's credit loan for Railroad Rehabilitation Project

Grace period•2.5 yearsGrant element•17.6593%Interest rate (t₀)•6%Interest type•Fixed Interest RateMaturity•11 years

Narrative

Full Description

Project narrative

On December 15, 2003, China Eximbank signed a buyer's credit loan agreement with the Government of Venezuela's Finance Minister for a Railroad Rehabilitation Project. The total cost of the project was $188,490,000, and China Eximbank agreed to cover 80% of the total cost (or approximately $150,000,000). This project involved the rehabilitation of two railway segments: Cabello-Barquisimeto (137 km in length) and Yaritagua-Acarigua (67 km in length). Yankuang Group was the contractor responsible for implementation. Project implementation began on May 15, 2004. However, multiple reports from 2007 indicate that the project experienced implementation delays because of slow payments from Venezuela's state railway autonomous institute. The Venezuelan high-speed railway project has almost been abandoned with the construction site being overgrown with weeds. Due to Venezuela's inability to pay off its debts, many Chinese adminstrators withdrew.

Staff comments

1. The project is also called the 'Railroad System Rehabilitation Project of Venezuela'. The Chinese project title is 委内瑞拉铁路改造项目. The Spanish project title El Plan Ferroviario Nacional'. 2. This project is also associated with the 'Complementary Accord of the Economic and Technical Agreement for the Rehabilitation of the Midwestern Railway System'.