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

The China Venezuela Joint Fund (see project 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 project ID#91431 for TermoZulia II and project ID#91492 for TermoZulia IV.

Additional details

1. This project is linked to project ID#58677. It's unclear which tranche of the China-Venezuela Joint Fund provided the funding for this project, but giving the timing of the commitment date it was most likely Tranche A (project ID#35985) or Tranche B (project ID#37528). 2. This project is described as "TermoZulia V" by multiple sources. TermoZulia II is captured by project ID#91431 and TermoZulia IV is captured in project ID#91492. They are part of the broader General Rafael Urdaneta Thermoelectric Complex. This project is about 122 kilometers away from the General Rafael Urdaneta Thermoelectric Complex where the other TermoZulia projects are located. 3. Exactly when this ceased to be two separate power plants is unclear. 4. The total project cost indicated in "COMISIÓN MIXTA PARA EL ESTUDIO DE LA CRISIS ELÉCTRICA EN EL PAÍS INFORME FINAL" page 119 was used. This amount is in 2014 dollars. Other sources list other amounts, many in Bolivars. Given the difficulties of converting 2008 Bolivars to 2022 USD, it is difficult to say if the figures vary substantially.

Number of official sources

7

Number of total sources

8