[China-Venezuela Joint Fund] CBD funds USD 275 million Margarita Island Transmission Line (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
Description
In March 2012, plans were announced to build a transmission cable from Chacopata to Margarita Island. On June 30, 2012, Corpoelec signed a contract with ZTE for a cable with a 400 MW capacity. The cable also included fiber optic cables for information transmission. The cable is composed of four conductors, and is 160 km long. The investment was USD 275 million. It was funded by the China-Venezuela Joint Fund (see project ID#58677) and investments from FONDEN, a Venezuelan state-owned fund. The amount from the China fund is unclear. The project was inaugurated on December 5, 2014. It was capable of carrying 80 MW. Successful maintenance was done on the cable in August 2022 to improve internet on the island. In November 2022, there were problems with a plant on the island, so all of the power was supplied through the cable, which was only capable of meeting 50% of the demand.
Additional details
1. No transaction amount is included because it is already captured in project ID#58677.
Number of official sources
4
Number of total sources
6
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Fondo Nacional para el Desarrollo Nacional (FONDEN) [Government Agency]
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]
CORPOELEC [State-owned Company]
ZTE Corporation [State-owned Company]
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.