[China-Venezuela Joint Fund] CDB provides $403 million loan for Alcasa Aluminum Plant Project (Linked to Project ID#58677, 37808 and #37804)
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
In November 2011, Venezuela's Alcasa signed a deal with China Aluminum International Engineering Company (“Chalieco”) to improve the performance of Alcasa's primary aluminum smelters. The amount contracted for the project was 403 million USD, provided by the China-Venezuela Joint Fund. By October of 2011, it was reported that there were several difficulties with Chinalco's proposed improvements, and there was some doubt as to whether or not the project could continue. A release on Chinalco's website in June of 2014 admitted that the project was slow to be implemented, but at that date had been 78% completed. Alcasa produces 22.5 kilogram ingots (49.5 pounds), rolled aluminum in coils, plates and bands and other products for the construction, electrical, transport, packing and refrigeration industries. At the time of this deal Alcasa only had resources to operate at 40 percent of its installed capacity of 420,000 metric tons (462,971 tons) per year. In addition to the Chalieco funds, President Chávez approved $90.4 million to be provided by FONDEN to support CVG Alcasa’s operations. According to a Correo Del Orinoco source, the project is financed through the long-term facility of China Venezuela Joint Fund. 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
1. According to a Correo Del Orinoco source, the project is financed through the long-term facility of China Venezuela Joint Fund. 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. 2. To avoid double-counting, the transaction (commitment amount) field is set to Missing.
Number of official sources
5
Number of total sources
15
Details
Cofinanced
No
Direct receiving agencies [Type]
Banco de Desarrollo Económico y Social de Venezuela (BANDES) [State-owned Bank]
China-Venezuela Joint Fund [State-owned Fund]
Implementing agencies [Type]
Aluminum Corporation of China (Chinalco) [State-owned Company]
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.