[China-Venezuela Joint Fund] Renovation and support of Corpoelec (linked to #58677)
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Description
On August 16, 2009, after requesting 1.15 billion USD from the Venezuelan government, President Hugo Chavez approved a 1 billion USD donation from the Venezuelan government to Corpoelec, of which 500 million USD came from the China-Venezuela Fund. The other half of the donation came from FONDEN, or the Venezuelan National Development Fund. This investment was intended for Corpoelec’s investment and renovation. However, Chavez approved another 279 million to offset Corpoelec's deficit problems [#37525]. The total transaction amount is $500 million but not sure how much comes from China. 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.
Additional details
From Chinese sources, China-Venezuela Joint Fund provides 1 billion USD to Venezuelan electricity system. Because this project was supported, at least in part, by the China-Venezuela Joint Fund/Fondo Estrategico Pesado (See #35985, #37528, #37838, #38163, 38316, and #38380), this project is marked as a resource-backed or commodity-backed loan.
Number of official sources
2
Number of total sources
6
Details
Cofinanced
No
Direct receiving agencies [Type]
CORPOELEC [State-owned Company]
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.