[China-Venezuela Joint Fund] Chinese financing for construction of Los Teques and Caracas Metro Lines in Venezuela (Linked to #58677)
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
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 project ID#58677 for more information on the fund. The first commitment to this fund was made in 2007.
Additional details
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.
Number of official sources
3
Number of total sources
10
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Venezuela [Government Agency]
Implementing agencies [Type]
Banco de Desarrollo Económico y Social de Venezuela (BANDES) [State-owned Bank]
China-Venezuela Joint Fund [State-owned Fund]
Collateral provider [Type]
Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]
Collateral
Venezuela undertakes through PDVSA to sell fuel and / or crude oil in accordance with the oil contract (s) to ChinaOil in quantities not less than 230,000 barrels per day, by the date on that the obligations assumed with respect to the facilities have been completed and unconditionally fulfilled by BANDES; ChinaOil will deposit the money for the purchase of crude oil and fuel directly into the collection account opened and maintained by the BANDES and CDB.