[China-Venezuela Joint Fund] Support to 13 Electricity Generation Projects (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
Unallocable
Infrastructure
Yes
Category
Project lifecycle
Description
Summary: On December 11, 2009 President Hugo Chavez approved a 215.8 million USD donation from the China-Venezuela Fund to support 13 electricity generation projects in the Andean region of Venezuela. This region is highly affected by rationing and 18% of the daily demand for electricity experiences cut offs. China-Venezuela Fund was signed in 2007 as $4 billion, making it the largest loan China has given to a signal is partly financed by China Development Bank but we don't know exactly how much is funded by CDB. There are three portions to the fund: tranche A, B, and C. As of 2016, the tranche B loan was renewed by US$5 billion. In 2015, renewed this same portion from US$ 4 billion to US$5 billion. The payable date was extended from 2 years, to 5 years. Tranche C underwent similar changed to aid Venezuela in paying off US$ 1 billion. The total investment is $215.8 million but being financed by the CDB and Exim Bank. The Fund also recieves contributions from FONDEN and is administered by BANDES. Similarly to many of the other loans administered through the China-Venezuela Fund, it will be repaid in oil and, therefore, not officially counted as debt.
Additional details
Results of project unclear.
Number of official sources
1
Number of total sources
7
Details
Cofinanced
No
Direct receiving agencies [Type]
Unspecified Venezuela companies [Miscellaneous Agency Type]
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.