Project ID: 37915

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

Commitment amount

$ 4696494231.703381

Adjusted commitment amount

$ 4696494231.7

Constant 2021 USD

Summary

Funding agency [Type]

Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]

Recipient

Venezuela

Sector

Other social infrastructure and services (Code: 160)

Flow type

Loan

Level of public liability

Other public sector debt

Infrastructure

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

Vague (Official Finance) (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2012-02-01

Geography

Description

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 Project 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.

Additional details

1. Sinosure was expected to insure the ICBC loan during the second half of 2013. However, it is unclear if this ultimately took place. This issue requires further investigation. 2. Some sources suggests that this transaction was meant to support the construction of 20,000 rather than 13,000 housing units. This discrepancy may be because the proceeds of the ICBC loan were also used to finance the construction of 4,537 housing units in the Palma Sola residential complex in Barinas, which was completed in 2011. This issue requires further investigation. 3. This project is also known was the Fuerte Tiuna Housing Complex Project. The Chinese project title is 委内瑞拉社会住房项目. 4. For the time being, AidData has coded the financial commitment date as January 2012. However, according to a Government of Venezuela filing with the U.S. Securities and Exchange Commission (https://www.sec.gov/Archives/edgar/data/103198/000119312517376486/d505622dex99d.htm), March 2011 is the month in which the loan agreement was signed. This issue warrants further investigation.

Number of official sources

16

Number of total sources

31

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Details

Cofinanced

No

Direct receiving agencies [Type]

Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]

Implementing agencies [Type]

CITIC Construction Co., Ltd. (中信建设有限责任公司) [State-owned Company]

Collateral provider [Type]

Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]

Collateral

PDVSA income from daily oil sales to China National United Oil Corporation (ChinaOil)

Loan Details

Bilateral loan

Investment project loan