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

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 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. Current status of project is unknown

Number of official sources

8

Number of total sources

12