[China-Venezuela Joint Fund] The Santa Lucia-Kempis Highway Expansion Project (Linked to Project ID#58677)
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
The Santa Lucia-Kempis Expressway project is the first EPC project under the multilateral cooperation framework of China, Brazil and Venezuela, with a contract value of $600 million. The funding of this project was allocated through the China-Venezuela Joint Fund. The project is carried out by the China Hydropower Corporation, which is based on the Engineering Bureau, as the responsible party (accounting for 80% of the contract share). The scope of the project includes the design, procurement, construction of the new 20-kilometer highway and the widening of the existing 4-kilometer highway. The project will be implemented in two phases with a total construction period of 24 months. The project was formally signed in January 2014, and the first board of directors of the joint venture was held in April to determine the basic operational framework. Construction started in August 2014. On the morning of December 10, 2014, the expansion section of the Venezuelan Sancan Expressway Project, which was led by the Eighth Bureau of Hydropower and Power Engineering, a subsidiary of POWERCHINA, was completed and opened to traffic.
Number of official sources
2
Number of total sources
5
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]
Sinohydro (PowerChina) [State-owned Company]
China-Venezuela Joint Fund [State-owned Fund]
Camargo Correa Group [Private Sector]
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.