Skip to content
AidData logo

Overview

[China-Venezuela Joint Fund] Second Stage of Rehabilitation and Expansion of Guarico Irrigation System (Linked to Record ID#58677)

Commitment Year•2008Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 3, 2008

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

The Chinese Government began a development project in the city of Calabozo. More detailed locational information can be found at: https://www.openstreetmap.org/relation/14510928

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 companies

  • China CAMC Engineering Co., Ltd. (CAMCE)

State-owned Funds

  • China-Venezuela Joint Fund

Collateral providers

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

[China-Venezuela Joint Fund] Second Stage of Rehabilitation and Expansion of Guarico Irrigation System

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

The first phase of the Guarico Irrigation System Rehabilitation and Expansion project was signed in 2006, on 19th December, with a contract cost of 65 million USD between China CAMC Engineering and Venezuela's agriculture ministry. The project is also referred to as the "Integrated Agricultural Development Project in Rio Guarico" by CAMC. The project involves the rehabilitation and construction of 35,000 hectares of irrigation area, construction of new rural communities, rehabilitation and construction of rural road, and establishment of a crop diversification demonstration center and agro-processing park. On April 3rd, 2008, CAMC signed the second phase of the commercial contract, with a contract cost of 135 million USD. In April 2009, China and Venezuela signed a commercial contract agreement valued at 308 million USD regarding the expansion and restoration of the irrigation system of the Guarico River in Venezuela. In August 2009, China CAMC Engineering pledged to carry out the third phase of the irrigation project in the Calabozo district of the state of Guarico, which is valued at 150 million USD and is expected to operate at full capacity in 2012. The lifetime of the project is expected to be between 35 and 50 years. On December 23rd, 2009, China’s CAMC signed another agreement with the National Rural Development Agency under the Venezuelan Ministry of Agriculture and Land for section 2, third phase of the irrigation project, valued at 312 million USD. On December 3rd, 2010, China’s CAMC signed a commercial contract for the 4th phase of the Guárico River Development Project. According to a Correo Del Orinoco article in 2011, the China-Venezuela Joint Fund will be financing the second stage of the Guarico irrigation project. As such, the commitment year is recorded as 2008. 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. Current status of project is unknown