[China-Venezuela Joint Fund] China Funds USD 2.4 Million Santo Domingo Irrigation Project (linked to project ID#37829, 58677, 35985, 37528)
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Agriculture, forestry, fishing (Code: 310)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
On May 26, 2010, it was announced that the China-Venezuela Joint Fund (abbreviated FCCV in Spanish) (see project ID#58677) would fund USD 2.4 million for the development of irrigation and agricultural infrastructure in Santo Domingo. This project is called "El Sistema de Riego Santo Domingo" or "Agrosocialista Santo Domingo" in Spanish. Hugo Chavez had discussed plans to develop agriculture around the Santo Domingo river as early as February of 2008, but this project was not officially announced until January of 2010. Implementing agencies included PDVSA Agrícola, a subsidiary of PDVSA, and the National Institute of Agricultural Research (INIA), a subsidiary of the Ministry of People's Power for Agriculture and Land, which carried out 56% of the work. 42 hectares were already in full production in May of 2010. An additional 10 hectares were cleared in 2019, and it was planned that the rice would be distributed in open air markets. It is unclear when this project was completed, or if it ever was.
Additional details
1. In a 2009 speech, Chavez said "rice production in the Santo Domingo irrigation system in Barinas, 5 million bolívares, with the People's Republic of China...Corn production, in the Santo Domingo irrigation system, with China, 8 million bolívares". VEF 13 million in 2009 was equal to USD 6 million, according to TUFF internal currency calculations. This is much higher than the USD 2.4 million figure given in the 2010 project announcement. It is possible that this project was funded from both Tranche A (see project ID#35985) and Tranche B (see project ID#37528) of the China-Venezuela Joint Fund (see project ID#58677), and therefore the total project cost should be higher. This is further evidenced by the statement in the Correo del Orinoco article that 42 hectares had already been cleared. The more conservative, 2010 number was used, and the commitment date is currently recorded as 2010. It may be earlier. 2. No transaction amount is recorded because it is captured by the China-Venezuela Joint Fund.
Number of official sources
4
Number of total sources
5
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]
Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]
Venezuela Ministry of People's Power for Agriculture and Land [Government Agency]
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.