ICBC provides $4 billion loan to PDVSA for construction of 20,000 homes (Linked to Record ID#37918, #63032, and #94091)

Project narrative

In March 2011, PDVSA, CITIC Construction, and the Industrial and Commercial Bank of China (ICBC) signed a Memorandum of Understanding (MOU) to evaluate the feasibility of a $4 billion ICBC loan for housing projects and other projects of interest to be jointly executed between CITIC and PDVSA. Then, in January 2012, ICBC authorities approved the $4 billion financing proposal. The oil-backed loan was to be repaid and collateralized with PDVSA income from oil sales to China National United Oil Corporation (ChinaOil). To this end, an oil supply contract was signed by PDVSA Petróleo, HUTONG Trading, and ChinaOil. This project is part of the Gran Misión Vivienda Venezuela (GMVV), a massive Venezuelan housing project (captured via Record ID#94091). An initial loan disbursement of $1.5 billion took place in February 2012 to support the implementation of the Tiuna Social Housing Project (also known as the Fuerte Tiuna Housing Project). This project involved the construction of 13,000 social housing units within the Tiuna military base (‘Fuerte Tiuna’) in Caracas. On July 21, 2014, President Xi Jinping, accompanied by President Nicolás Maduro of Venezuela, visited the project site. By the end of 2014, over 40% of the project had been completed and 18 blocks delivered. As of July 4, 2016, 3964 housing units had been delivered under the first phase of the Tiuna Social Housing Project, and the structure of 2,920 housing units had been capped under the second phase. Then, on July 28, 2017, a formal handover ceremony for Zone D of the Tiuna Social Housing Project took place. A formal handover ceremony for Zone J1 of the Tiuna Social Housing Project took place on December 27, 2017. By the end of 2017, CITIC Construction had constructed and completed 1,592 houses in 14 buildings within the D1, J1 and C2 Zones of the Tiuna Social Housing Project ‘under extremely difficult conditions’. Nicolás Maduro Moros, President of Venezuela, attended the handover ceremony of the 2.5 millionth house in the D Zone of Tiuna city, built by CITIC Construction, on December 27, 2018, local time. Delcy Rodríguez, Vice President of Venezuela, and Ildemaro Villarroel, Minister of Habitat and Housing of Venezuela, attended the ceremony. 1,600 local workers and 800 Chinese workers were reportedly employed to support the implementation of this project.