[China-Venezuela Joint Fund] CDB provides loan for Termo Carabobo II Power Plant (Linked to Project ID#58677)
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
The TermoCarabobo II coal-fired power plant cost #1.116 billion. The project has a capacity of 680 MW. It was built by Sinohydro in conjunction with Corpoelec and PDVSA. The plant was completed on April 15, 2014. An additional phase worth USD 880 million to add an additional 320 MW was being contemplated at the time of the completion. It seems that this addition did not actually occur. A 2019 Andorran lawsuit alleged that Sinohydro bribed the cousin of the former president of the PDVSA to give them the the TermoCarabobo II contract. It was also alleged that Sinohydro overcharged for the plant by USD 620 million). It seems that the plant stopped fully functioning at some point between its opening and 2022, because efforts are currently underway to "rehabilitate" the plant. The goal was to repair each of the plants four 150 MW generators to bring the capacity to 600 MW. As of May 4, 2022, the third unit was 63% complete.
Additional details
1. This project is not the same as TermoCarabobo I, also known as El Palito, which is captured by project ID#91257. Researchers should be aware that they are located near each other, have the same contractors, and have similar names. TermoCarabobo I has a capacity of 772 MW while TermoCarabobo II has a capacity of 680. 2. This project is linked to the China-Venezuela Joint Fund (#58677) 3. The commitment year is unclear. In 2010, Venezuela allocated USD 5.5 billion from the China-Venezuela joint fund to the construction of power plants (see project ID#37833). This project may be part of that initiative given the construction start date and the inclusion of TermoCarabobo I in that project, but this project was not mentioned in the sources. 4. No transaction amount is given because it is captured in the China-Venezuela joint fund project. 5. "Expensive Scams" gives the total project cost as USD 1,273,700,000. The more conservative 1.116 billion amount provided by the government of Venezuela in "Planta Termocarabobo II generará 680 MW y estabilizará al SEN" was used.
Number of official sources
3
Number of total sources
6
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]
Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]
CORPOELEC [State-owned Company]
Sinohydro (PowerChina) [State-owned Company]
China-Venezuela Joint Fund [State-owned Fund]
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.
Loan Details
Interest rate
1.72%