Overview

CDB provides $823.5 million loan for 20,000 Social Housing Units Project

Commitments (Constant USD, 2023)$1,545,311,002

Commitment Year•2006Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 24, 2006

Start (actual): Nov 6, 2006

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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CDB provided a loan for 20,000 Social Housing Units Project. This project was located in the states of Barinas, Aragua y Caracas. Barinas: https://www.openstreetmap.org/relation/3763132 Aragua: openstreetmap.org/relation/272746 Caracas: https://www.openstreetmap.org/relation/11219583

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 ownership

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

Government Agencies

Government of Venezuela

Implementing agencies

State-owned companies

CITIC Construction Co., Ltd.

Collateral providers

State-owned companies

Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

CDB provides $823.5 million loan for 20,000 Social Housing Units 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 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

On August 24, 2006, China Development Bank signed a $823.5 million loan agreement with the Government of Venezuela for the 20,000 Social Housing Units Project. The proceeds of the loan were to be used by the borrower to finance approximately 75% of the cost of a $1.098 billion commercial contract. PDVSA — the Venezuelan state-owned oil company — agreed to increase oil exports to China and use the proceeds from the oil export sales to facilitate loan repayment. This project involved the construction of 20,000 social housing units in the states of Barinas, Aragua y Caracas. CITIC was the contractor responsible for project implementation. The project officially commenced on August 24, 2006. However, a project implementation agreement was not signed until November 6, 2006. CITIC has stated the project was completed but on an unknown date.

Staff comments

1. The China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center, does not capture the CDB loan that supported this project. 2. The Spanish project title is 委内瑞拉社会住房项目 or 委内瑞拉两万套社会住房项目. 3. Given that CDB agreed to provide a loan to finance 75% of the cost of the commercial contract, AidData assumes that the loan was issued in the form of a buyer's credit. This issue warrants further investigation.