[China Venezuela Joint Fund] China Funds USD 2.178 Billion India Urquia 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 China-Venezuela Joint Fund sponsored the USD 2.178 billion India Urquia Power Plant (also known as TermoCentro or El Sitio). The contract was signed in May of 2009, so the plant was funded by either Tranche A (project ID#35985) or Tranche B (project ID#37528) of the China-Venezuela Joint Fund (see project ID#58677). The project also received funds from FONDEN and Corpoelec. A 2013 budget report from the Ministry of People's Power for Planning put the total project cost at USD 1,744,374,460.56. A National Assembly commission from 2018 put the total project cost at USD 2.78 billion. The contractor was Duro Felguera of Spain. The contract was signed in May of 2009. Construction began in October of 2009. The first phase of construction involved the installation of four 150 MW Siemens turbines, for a total installed capacity of 560 MW. This phase was completed on September 18, 2013. The second phase involved installing two combined cycles in October of 2016, for a total of 1,080 MW. The project was somewhat delayed, as the original plan was for all construction to be completed by the end of 2013. The plant was active as of 2018. Venezuelan officials visited the plant in 2020, and it was still functioning. A representative from Duro Felguera appeared before the National Commission in 2016 to discuss the plant. A 2018 extradition decision on the case of Nervis Gerardo Villalobos Cárdenas mentioned that he was being charged in Venezuela for awarding the TermoCentro contract to Duro Felguera after receiving a EUR 46 million bribe. In 2018, Spain charged Duro Felguera and some of its executives with paying USD 105 million in bribes to secure the TermoCentro contract.
Additional details
1. No transaction amount is provided because it is captured by project ID#58677. 2. It appears that this plant is part of the broader TermoCentro complex. It's unclear what the names of the other plants are and if they were funded by the Joint Fund.
Number of official sources
9
Number of total sources
11
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Fondo Nacional para el Desarrollo Nacional (FONDEN) [Government Agency]
CORPOELEC [State-owned Company]
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]
Duro Felguera [Private Sector]
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%