Skip to content
AidData logo

Overview

[China-Venezuela Joint Fund] CDB provides $603.57 loan for La Cabrera (José Felix Ribas) Power Plant Construction Project (Linked to Record ID#58677)

Commitment Year•2010Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2010
End (actual)
Apr 3, 2014

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

CDB provides $603.57 loan for La Cabrera (José Felix Ribas) Power Plant Construction Project. More detailed locational information can be found at https://www.openstreetmap.org/way/1132550858

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)

Cofinancing agencies

Government Agencies

  • Fondo Nacional para el Desarrollo Nacional (FONDEN)

State-owned Funds

  • Fondo Cambio
  • Fondo Independencia 200

Receiving agencies

State-owned Banks

  • Banco de Desarrollo Económico y Social de Venezuela (BANDES)

State-owned Funds

  • China-Venezuela Joint Fund

Implementing agencies

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)
  • Sinohydro Corporation Limited

State-owned Funds

  • China-Venezuela Joint Fund

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Collateral providers

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

[China-Venezuela Joint Fund] CDB provides $603.57 loan for La Cabrera (José Felix Ribas) Power Plant Construction Project

Interest type•Unknown

Collateral

The borrowing was collateralized with PDVSA income from daily oil sales to China National United Oil Corporation (ChinaOil), in quantities not less than 230,000 barrels per day, 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

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 Record 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 Record 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.

Staff comments

1. No transaction amount is recorded for this project because it is already recorded through the China-Venezuela Joint Fund (as captured via Record ID#58677).