[China-Venezuela Joint Fund] CDB funds USD 3.8 billion José Ignacio Abreu e Lima National Steel project (linked to project ID#58677)
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Venezuela
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Description
In 2006, the Venezuelan government announced the creation of the José Ignacio Abreu e Lima National Steel company (Spanish: Siderúrgica Nacional José Ignacio Abreu e Lima). The project was funded by the China-Venezuela Joint Fund (see project ID#58677), although the Chinese investment was most likely made later than 2006. The project cost USD 3,871,471,140.34. It was also funded by FONDEN, BNDES of Brazil, and BBVA. The amount from each entity is unclear. The project consisted of the construction of a steel production company is Ciudad Piar, Barinas. In 2008, the Brazilian company Andrade Gutiérrez was contracted to build the plant. The project was also implemented by the Ministry of People's Power for Industry and EPS Siderúrgica Nacional SA. In 2012, the plant was still under construction, with the goal of producing 1.55 million tons of liquid steel per year when completed. According to official sources, the project was showed 94% progress in the external area and 86% development in the reagent building of the concentration plant in September 2013, and would be ready to open in late 2014. It is not clear if the plant was ever completed. Some student programs were run at the plant in 2016 and 2017, but it wasn't producing at full capacity.
Additional details
1. No transaction amount is recorded for this project because it is already captured in the China-Venezuela Joint Fund (see project ID#58677) 2. This project should not be confused with the José Ignacio Abreu e Lima agricultural project (see project ID#94030).
Number of official sources
4
Number of total sources
7
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Fondo Nacional para el Desarrollo Nacional (FONDEN) [Government Agency]
Brazilian Development Bank (BNDES) [State-owned Bank]
BBVA [Private Sector]
Direct receiving agencies [Type]
Banco de Desarrollo Económico y Social de Venezuela (BANDES) [State-owned Bank]
Implementing agencies [Type]
Venezuelan Ministry of Industry [Government Agency]
EPS Siderúrgica Nacional SA [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.