Overview

[China-Venezuela Joint Fund] Support to 13 Electricity Generation Projects (Linked to Record ID#58677)

Commitment Year•2009Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Dec 11, 2009

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

Private Sector

Unspecified Venezuela companies

Implementing agencies

State-owned Banks

Banco de Desarrollo Económico y Social de Venezuela (BANDES)

State-owned Funds

China-Venezuela Joint Fund

Collateral providers

State-owned companies

Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

[China-Venezuela Joint Fund] Support to 13 Electricity Generation Projects

Interest type•Unknown

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.

Narrative

Full Description

Project narrative

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.

Staff comments

Results of project unclear.