[China-Venezuela Joint Fund] CDB provides $603.57 loan for La Cabrera (José Felix Ribas) Power Plant Construction Project (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
In March 2010, Sinohydro and PDVSA signed a commercial contract for the development of La Cabrera thermoelectric power plant in Maracay, Aragua state. The total project cost was $603.57 million, funded by the China-Venezuela Joint Fund l (see Project ID#58677 for information about the fund). The project was also funded by the Fondo Nacional para el Desarrollo Endógeno (FONDEN), Fondo Independencia 200, and the Fondo Cambio, which are all Venezuelan state-owned development funds. It is unclear how much each fund contributed to the total project cost. The contractor was Sinohydro. The first turbine was put into operation on December 25, 2012. The project was completed on April 3, 2014, and it began generating 320 MW. The project is composed of two 160 MW turbines. A plant was originally constructed on the same site in 1974, but this project represented a significant upgrade. In a 2019 Andorran lawsuit, it was alleged that the cousin of the former president of the PDVSA took bribes from Sinohydro for this project and TermoCarabobo I (see Project ID#91257). A special commission of the National Assembly found a discrepancy of USD 359 million between the contract cost and estimated costs for installing the two turbines. Sinohydro did not appear before the commission to address these concerns. As of 2021, the plant has been described as suffering 'constant failures'. The Government of Venezuela reportedly defaulted on its repayment obligations under the loan agreement for the La Cabrera (José Felix Ribas) Power Plant Construction Project. However, Sinosure made an indemnity payment worth $14.99 million in December 2015.
Additional details
1. No transaction amount is recorded for this project because it is already recorded through the China-Venezuela Joint Fund (as captured via Project ID#58677).
Number of official sources
8
Number of total sources
18
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Fondo Nacional para el Desarrollo Nacional (FONDEN) [Government Agency]
Fondo Independencia 200 [State-owned Fund]
Fondo Cambio [State-owned Fund]
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]
Sinohydro (PowerChina) [State-owned Company]
China-Venezuela Joint Fund [State-owned Fund]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Security agent/Collateral agent [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.