[China-Venezuela Joint Fund] China Provides USD 4.17 Billion for Tocoma Hydroelectric Power Plant (linked to project ID#58677, 37804 and 37808)

The Tocoma hydroelectric power plant (Central Hidroeléctrica Manuel Piar) is funded by the China Venezuela Joint Fund (see project ID#58677) Long Term Facility (see project ID#37804 and 37808) and other international creditors. Tocoma was the original project name. It was selected from names based on the local indigenous language. Hugo Chavez changed it to the Manuel Piar Hydroelectric Plant in 2007. The total project cost is being kept confidential by the Venezuelan government, but estimates suggest the total cost is USD 9.365 billion or as high as USD 10.37 billion. The project was first proposed by Chavez on April 28, 2002, with a planned completion date in 2012. In 2004, the Andean Development Corporation (CAF) loaned the Venezuelan USD 300 million for the project, and the Inter-American Development Bank loaned USD 750 million. In 2007, CAF provided an additional loan of USD 600 million. In 2009, the Inter-American Development Bank loaned an additional USD 800 million. In 2010, CAF provided a third loan of USD 600 million. The total CAF contribution was USD 1.5 billion and the total Inter-American Development Bank contribution was USD 1.550 billion. China became involved with this project in 2011 with a contribution of USD 4.17 billion through the long-term fund (see project ID#37804 and 37808). Even in 2012, after the Chinese investment had been announced, the Vice President of Corpoelec said that USD 3.3 billion more in investment would be necessary. On January 23, 2007, the OIV consortium consisting of Odebrecht of Brazil (45%), Impregilo of Italy (40%), Vinccler C.A. of Venezuela (10%), and CBPO Engenharia Ltda. of Brazil (5%) won the USD 968 million contract. By 2016, Corpoelec had disbursed USD 1.297 billion to the OIV consortium. An additional contractor was IMPSA of Argentina. As of 2016, the contract value was USD 1.150 billion. The plant was supposed to have a capacity of 2,160 MW. The project was never fully completed. Estimates for completion range from as little as 20% to 87.19% from media sources to 96% complete from a 2018 national assembly report. As of 2019, the project was considered stalled. The National Assembly commission which investigated the 2018 electricity crisis found that the project cost triple the original estimated cost. Odebrecht, one of the main contractors, was at the center of a massive, unrelated corruption scandal in 2018.

Additional details

1. The total project cost is uncertain. Every Transparencia Venezuela document puts it at USD 10.371 billion, but other sources put the number lower. Some of this may have to do with the difficulty of making conversions from Bolivars during the period of hyperinflation. 2. This project is financed by the China-Venezuela Joint Fund (see project ID#58677) Long-Term Facility (see project ID#37804 and 37808). It is unclear whether it is funded by the USD facility or the RMB facility, so no interest rate is included. 3. This project is called "Planta Hidroeléctrica Tocoma" or "Central Hidroeléctrica Manuel Piar" fairly interchangeably, although the name was changed to be Manuel Piar officially at some point around 2007. 4. The commitment date does not reflect the date when Chinese financing started. That is most likely in 2011, although it could be 2010 given the timing of the long term facility.

Number of official sources

7

Number of total sources

17