[China-Venezuela Joint Fund] Metallurgical Corporation of China awarded contract to expand the Puerto de Palua [Linked to #37838]
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 September of 2011, Venezuela signed a contract with the Metallurgical Corporation of China (MCC) to expand the Venezuelan port of Palua, doubling the capacity to move iron ore in the Orinoco River. The contract is for 112 million USD and was expected to be completed by the end of 2012. Funding was to come from the China-Venezuela Joint Fund. However, a March 2013 publication from the International Centre for Trade and Sustainable Development suggested that the project had not begun. 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.
Number of official sources
2
Number of total sources
7
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]
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.