[China-Venezuela Joint Fund] Purchase of Equipment for Bauxilum [Linked to #58677]
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
Central government debt
Infrastructure
No
Category
Project lifecycle
Description
In 2012, Venezuelan state alumina and bauxite company Bauxilum invested US$15mn to purchase equipment that will help normalize operations, improve bauxite management and extend the lifespan of stacking equipment. Some 50% of the resources to carry out the project were provided by the China-Venezuela fund. The status of these investments is unclear. The 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$5 billion. The China-Venezuela Joint Fund receives contributions from China Development Bank and FONDEN, and it is administered by BANDES. See project ID#58677 for more information on the fund. In 2015, China renewed this same portion from US$ 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, being financed by the CDB and Exim Bank.
Additional details
Funded by #58677, the China Venezuela Joint Fund. Bauxilum also received large sums from the China Venezuela fund in 2009 and 2014.
Number of official sources
1
Number of total sources
5
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]
Indirect receiving agencies [Type]
C.V.G. Bauxilum C.A. (Bauxilum) [State-owned Company]
Government of Venezuela [Government Agency]
Implementing agencies [Type]
Corporacion Venezolana de Guayana (CVG) [State-owned Company]
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.