[China-Venezuela Joint Fund] China funds USD 337 Million Juan Bautista Arismendi 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 was used to build the USD 337 million Juan Bautista Arismendi Power Plant. The project contract was signed on August 11, 2008, 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 primary contractors for the project were Derwick Associates and Inservern. The project was supposed to have a capacity of 170 MW and be completed on July 4, 2011. The plant was completed on May 15, 2018 with a reported capacity of 140 MW, although sources vary on the true capacity. It burns natural gas and diesel. On May 12, 2021, a fire broke out at the plant which destroyed both turbines. Corpoelec blamed the plant's failures on vandalism in November of 2021. Bewick and Associates has been indicted in multiple jurisdictions, including Florida, New York, United States, and Andorra on corruption-related allegations. A 2014 Wall Street Journal investigation found that the company significantly overcharged for the turbines used in the Juan Bautista Arismendi project.
Additional details
1. No transaction amount is included because the amount is captured by one of the subprojects to project ID#58677. 2. It is unclear exactly when construction began. Sources also vary as to the amount actually installed and the amount the plant was producing before it was destroyed.
Number of official sources
4
Number of total sources
13
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]
Derwick and Associates [Private Sector]
Inserven de Venezuela C.A. [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.