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Overview

[China-Venezuela Joint Fund] CDB Funds USD 219 Million Turmerito Housing Development (Linked to Record ID#58677 and 94091)

Commitment Year•2011Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 30, 2011
End (actual)
Nov 27, 2011

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • Banco de Desarrollo Económico y Social de Venezuela (BANDES)

State-owned Funds

  • China-Venezuela Joint Fund

Implementing agencies

Government Agencies

  • Venezuela Ministry of People's Power for Housing and Habitat

State-owned Funds

  • China-Venezuela Joint Fund

Collateral providers

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

[China-Venezuela Joint Fund] CDB Funds USD 219 Million Turmerito Housing Development

Interest type•Unknown

Collateral

The borrowing was collateralized with PDVSA income from daily oil sales to China National United Oil Corporation (ChinaOil), which was deposited in a collection (escrow) account at China Development Bank (CDB). Banco de Desarrollo Económico y Social de Venezuela (BANDES) opened and maintained a USD-denominated collection (escrow) account with CDB into which all proceeds from oil export sales -- under an offtake agreement (petroleum sales and purchase contract) between PDVSA and ChinaOil -- were deposited for the purposes of (a) making regular debt service payments to CDB, and (b) maintaining a minimum cash collateral balance. The borrower was required to maintain a minimum cash balance in the collection (escrow) account equivalent to no less than 1.3 times the aggregate amount of principal, interest, and any other amount due during the next repayment period. If the minimum cash balance was not maintained, then PDVSA would be responsible for increasing the amount of fuel and/or crude oil to be delivered under the petroleum sales and purchase contract to ensure that (a) the actual debt service coverage ratio was maintained at the required level at the required times; and (b) the amount in the New Collection Account was sufficient to meet the required balance requirements set out in the facility agreement. If PDVSA did not do so, then BANDES was responsible for transferring funds to the CDB-controlled bank account to 'remedy any shortfall.' The lender also had the ability to block the debtor from withdrawing the funds.

Narrative

Full Description

Project narrative

On November 27, 2011 100,000 houses were unveiled in the Turmerito Housing Development in Coche parish, Caracas (Spanish: Desarollo Turmerito). The project was funded by the China-Venezuela Joint Fund (see Record ID#58677). The total project cost was USD 219,457,908.70. This project was part of the Gran Mision Vivienda Venezuela (GMVV), a large-scale housing project started in April 2011 (see Record ID#94091). The project was implemented by the Ministry of People's Power for Housing and Habitat. The Gran Mision Vivienda Venezuela is also called Gran Misión Barrio Nuevo. The new town constructed in Turmerito is also called Barrio Tricolor, after the colors of the Venezuelan flag. In 2015, residents complained that the apartments did not have electricity or clean water, and that they had leaks.

Staff comments

1. No transaction amount is recorded because it is captured in the China-Venezuela Joint Fund (Record ID#58677)