[China-Venezuela Joint Fund] Construction of 3rd Joint Satellite [Linked to #38316 and #58677]
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Description
A new communications satellite was authorized at the meeting between China and Venezuela in September of 2013. The meeting included 27 agreements in which the two countries committed additional financing of US$5bn to a joint fund for a range of projects, taking the total funds to US$40bn. The satellite, known as VRSS-2, was ordered on October 5th of 2014 and will be in operation by 2017. It is being designed and built in China. This project is partially funded by the $5 bln credit line secured by Maduro, also known as Tranche C of the China Venezuela Joint Fund (see project ID#38316). 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
4
Number of total sources
10
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 Great Wall Industry Corporation [State-owned Company]
China Academy of Space Technology (CAST) [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.