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Overview

[China-Venezuela Joint Fund] Merida Cable Car Modernization Project (Linked to Record ID#58677)

Commitment Year•2010Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Trade Policies And RegulationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2010
End (actual)
Apr 29, 2016

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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Merida Cable Car Modernization Project. More detailed locational information can be found at https://www.openstreetmap.org/way/980650116

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

Private Sector

  • Doppelmayr Garaventa Group

State-owned Funds

  • China-Venezuela Joint Fund

Collateral providers

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

[China-Venezuela Joint Fund] Merida Cable Car Modernization Project

Interest type•Unknown

Collateral

The borrowing was collateralized with PDVSA income from daily oil sales 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 contract) 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. The borrower was required to maintain a minimum cash balance in the collection (escrow) account equivalent to no less than 1.3 times the aggregate amount of principal, interest, and any other amount due during the next repayment period. If the minimum cash balance was not maintained, then PDVSA would be responsible for increasing the amount of fuel and/or crude oil to be delivered under the petroleum sales and purchase contract to ensure that (a) the actual debt service coverage ratio was maintained at the required level at the required times; and (b) the amount in the New Collection Account was sufficient to meet the required balance requirements set out in the facility agreement. If PDVSA did not do so, then BANDES was responsible for transferring funds to the CDB-controlled bank account to 'remedy any shortfall.' The lender also had the ability to block the debtor from withdrawing the funds.

Narrative

Full Description

Project narrative

The China-Venezuela Joint Fund financed the Merida Cable Car ("Teleferico de Merida") Modernization Project. The commitment date of funding for this project is unclear. The China Development Bank has provided three tranches and one long term facility to the Joint Fund in total (#58677). FONDEN also contributes to this fund, and it's administered by BANDES. The first commitment to this fund was made in 2007. The Mérida cable car one of the longest and highest cable car systems in the world. In August 2008, the Mérida cable car was shut down to protect user safety because it had reached the end of its service life. In 2010, the Venezuelan government hired the Austrian Doppelmayr company to modernize the Mérida cable car system. The modernization project included upgraded wagons, towers, safety devices, communication and security systems, seats for the disabled, an anti-slip floor, escape routes, and stairs. The new wagons have an increased capacity of 60 people per trip compared to the previous 40 people per trip. The Merida Cable Car reopened on 29 April 2016 in the pre-commercial stage for for children, the elderly and people with disabilities and reopened to the public on 7 October 2016.

Staff comments

1. The flow type is unclear, however, the China Venezuela Joint Fund is financed by a loan, so the same is assumed here. The intent and flow class were coded the same as the China Venezuela Joint Fund intent and flow class (Record ID#58766). 2. The commitment year is also unclear, and has been coded as the year that the Merida Cable Car modernization project began. 3. 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. 4. This project is also known as El teleférico Mukumbarí