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Overview

[China-Venezuela Joint Fund] III Bridge over the Orinoco (Guárico-Bolívar) (linked to Record ID#58677)

Commitment Year•2015Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Suspended

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2015
End (planned)
Dec 1, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • Banco de Desarrollo Económico y Social de Venezuela (BANDES)

State-owned Funds

  • China-Venezuela Joint Fund

Implementing agencies

Government Agencies

  • Venezuela Ministry of Transportation and Communications

Private Sector

  • Doka Group
  • Odebrecht S.A.

State-owned Funds

  • China-Venezuela Joint Fund

Collateral providers

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

[China-Venezuela Joint Fund] III Bridge over the Orinoco (Guárico-Bolívar) (linked to Record ID#58677)

Interest type•Unknown

Collateral

The borrowing was collateralized with PDVSA income from daily oil sales (in quantities not less than 230,000 barrels per day) to China National United Oil Corporation (ChinaOil), which was deposited in a collection (escrow) account at China Development Bank (CDB). Banco de Desarrollo Económico y Social de Venezuela (BANDES) opened and maintained a USD-denominated collection (escrow) account with CDB into which all proceeds from oil export sales -- under an offtake agreement (petroleum sales and purchase agreement) between PDVSA and ChinaOil -- were deposited for the purposes of (a) making regular debt service payments to CDB, and (b) maintaining a minimum cash collateral balance

Narrative

Full Description

Project narrative

The China-Venezuela Joint Fund financed the continuation of the third bridge over the Orinoco (Guárico-Bolívar). Haiman El Troudi estimates that the project will be inaugurated in December of 2016. The investment amount is said to be $2.8 million (El Carabobeño) but the donor of this amount and its breakdown are not specified. Investments were made in the project in 2015, however the commitment date for the project is unclear. China Development Bank (CDB) and FONDEN or the National Development Fund (administered through BANDES) manage this fund. It is unclear which tranche funds this project. The cost is unclear. Odebrecht S.A. is a contractor on the project. The main section of the Third Bridge over the Orinoco River consists of a double deck structure (a road on the upper deck and a rail road on the lower deck) consisted of two main diamond-shaped towers made of reinforced concrete, standing 135.5 meters (444.5 feet) high and 11.13 km (7 miles) long. The navigation channel over the bridge features a 360-meter (1,182-foot) gap, and is 40 meters (132 feet) high and 21 meters (69 feet) long. In 2017 it was reported that construction on the bridge has been frozen as a result of a major multinational corruption scandal involving Odebrecht S.A.. As of July 4, 2020, the bridge still has not resumed and is presumed to be suspended indefinitely Doka is another contractor on the project. The China-Venezuela Joint Fund receives contributions from China Development Bank and FONDEN, and it is administered by BANDES. See Record ID#58677 for more information on the fund. The first commitment to this fund was made in 2007.

Staff comments

The flow type is unclear, however, the Chinese part of the fund is financed by a loan, so the same is assumed here. The transaction amounts for all sub-projects are accounted for in the projects for the three tranches and their renewals. Because it is unclear how much funding for each project is from the Chinese side and it is unclear which tranche is funding each sub-project, the transaction amounts should not be recorded until this information is known.