China Development Bank pledges to finance the 201km Bombeo-Villa Tunari Double Track Highway Construction Project

On June 19, 2018, representatives of China Development Bank (CDB) and Bolivia Ministry of Development and Planning signed a Memorandum of Understanding (MOU) for the Bombeo-Villa Tunari Double Track Highway Construction Project. The value It is unclear whether CDB ever signed a finalized financing agreement. This 201km road section is part of the No. 4 Highway, the main East-West road in Bolivia. At the time of signing, China Hydropower Construction Group International Engineering Co. Ltd. (SinoHydro) was supposed to be the implementing contractor. The total value of this project is unknown. At the same meeting, eight agreements were signed in total between Bolivian President Evo Morales and Chinese President Xi Jinping on subjects such as the export of coffee, meat, and quinoa; cultural cooperation; phytosanitary protocol; and economic and technical cooperation.

Additional details

The Spanish project title is La construcción de la carretera doble vía Bombeo Villa Tunari. The Chinese project title is 玻利维亚庞贝欧－图纳里公路项目. One source mentions in October 2015, China loaned $7.5 billion USD for several infrastructure projects including the Rositas Hydroelectric Power Plant, upgrading Viru Viru airport, and a double land highway between Bombeo and Villa Tunari is also on the list. No source indicates that actual agreement is signed. Some media sources indicate the CDB will provide a 200 million yuan grant, however, an Economic and Technical Cooperation Agreement for 200 million yuan was signed on the same day per official sources, which is the potential source of confusion. Therefore, it is not recorded as the transaction amount, particularly given how unlikely it is for the CDB to have granted 200 million yuan.

Number of official sources

4

Number of total sources

11