[China-Venezuela Joint Fund] China Funds USD 1.823 Billion Bachaquero and Tamare Power Plants (Termozulia V) (linked to Record ID#58677)

Project narrative

The China Venezuela Joint Fund (see Record ID#58677) provided USD 1.823 billion for the Bachaquero and Tamare power plants, also known as Termozulia V. The primary contractor was Germany's Ferrostaal. The project originally consisted of two plants, one in Bachaquero and one in Tamare, both in Zulia state. The contract was signed in July of 2008, and construction began in March of 2010. The contract was worth EUR 730 million. The planned completion date was March 30, 2014. There was supposed to be four 170 MW gas turbines and two 191 MW steam turbines installed to yield a capacity of 1062 MW. According to Ferrostaal, the government changed the plan in 2010 so that the power plant which was supposed to be built in Tamare was built in Bachaquero. According to a 2018 National Assembly commission report, Ferrostaal suspended work on the Tamare project in March of 2012 and suspended work on the Bachaquero project in January of 2013. A 2014 Corpoelec report stated that the government had invested more than USD 1.5 billion, and that the Bachaquero plant will add 500 MW to the grid in 2016. These plants were never finished. The Tamare one seems to never have been built, while the 500 MW Bachaquero plant was built but never put into use. The plants cost a least 200% more than was originally estimated. At least one steam turbine and two gas turbines are missing. One source alleges that procurement of turbines for these plants was contracted to Derwick and Associates, a notably corrupt procurement and construction firm. Those turbines were never delivered. TermoZulia plants I, II, III, and IV are located approximately 122 kilometers from the site of this plant, despite sharing a common name. See Record ID#91431 for TermoZulia II and Record ID#91492 for TermoZulia IV.