Overview

[China-Venezuela Joint Fund] Chinese financing for construction of Los Teques and Caracas Metro Lines in Venezuela (Linked to Record ID#58677)

Commitment Year•2011Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2011

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

The Chinese financed the construction of Los Teques and Caracas Metro Lines in Venezuela. More detailed locational information can be found at https://www.openstreetmap.org/way/440269690#map=16/10.3460/-67.0380 and https://www.openstreetmap.org/relation/4420867#map=13/10.3835/-67.0261 and https://www.openstreetmap.org/relation/2772730 and https://www.openstreetmap.org/relation/5130934 and https://www.openstreetmap.org/relation/3395516

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

China Development Bank (CDB)

Receiving agencies

Government Agencies

Government of Venezuela

Implementing agencies

State-owned Banks

Banco de Desarrollo Económico y Social de Venezuela (BANDES)

State-owned Funds

China-Venezuela Joint Fund

Collateral providers

State-owned companies

Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

[China-Venezuela Joint Fund] Chinese financing for construction of Los Teques and Caracas Metro Lines in Venezuela

Interest type•Unknown

Collateral

The borrowing was collateralized with PDVSA income from daily oil sales (in quantities not less than 230,000 barrels per day) to China National United Oil Corporation (ChinaOil), which was deposited in a collection (escrow) account at China Development Bank (CDB). Banco de Desarrollo Económico y Social de Venezuela (BANDES) opened and maintained a USD-denominated collection (escrow) account with CDB into which all proceeds from oil export sales -- under an offtake agreement (petroleum sales and purchase agreement) between PDVSA and ChinaOil -- were deposited for the purposes of (a) making regular debt service payments to CDB, and (b) maintaining a minimum cash collateral balance.

Narrative

Full Description

Project narrative

In 2011, Venezuela’s government dedicated 255.7 million USD of the 2 billion funds through the Fondo Pesado to finishing implementation of the Metro of Caracas and the Los Teques Metro. The government planned to complete Line 2 (Los Teques Metro) in 2015. The Los Teques Metro system connects Los Teques to the capital of Caracas. In addition to that, the Metro de Los Teques is operated by Metro de Caracas as an extension of the latter. The first line runs for 11.2km while the newer second line runs for 12km. Los Teques Metro has a daily ridership of 42,000. The second line has been operational since 2015. In April 2017, Alstom, a French manufacturer in passenger transportation, delivered the last of 22 metropolis trainsets--of 6 cars each-- to the Los Teques Metro. The first stage of Caracas Metro's Line 5 was opened on November 3, 2015. It runs a total of 1.5 km from the Zona Rental station all the way to the Bello Monte station. Line 5 is expected to have a daily ridership of 245,000. The China-Venezuela Joint Fund receives contributions from China Development Bank and FONDEN, and it is administered by BANDES. See Record ID#58677 for more information on the fund. The first commitment to this fund was made in 2007.

Staff comments

The flow type is unclear, however, the Chinese part of the fund is financed by a loan, so the same is assumed here. The transaction amounts for all sub-projects are accounted for in the projects for the three tranches and their renewals. Because it is unclear how much funding for each project is from the Chinese side and it is unclear which tranche is funding each sub-project, the transaction amounts should not be recorded until this information is known.