[China-Venezuela Joint Fund] CDB funds USD 15 million fertilizer plant (linked to project ID#58677 and 38380)
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
On July 21, 2014, China and Venezuela signed agreements to renew Tranche A of the China-Venezuela Joint Fund for the second time (see project ID#38380). At the same time, an agreement was signed for the joint creation of a joint venture between Agropatria and SINOCHEN AGRO called AGROCHEM to develop fertilizers. The project was funded with USD 15,224,047.62 or VEF 95,911,500 from the second Tranche A renewal of the China-Venezuela Joint Fund. It was also financed by FONDEN, a Venezuelan state-owned fund. The project was implemented by the Ministry of People's Power for Petroleum and Mining and PEQUIVEN. It is located in Anzoátegui, at the José Antonio Anzoátegui Petrochemical Complex (Spanish: Complejo Petroquímico José Antonio Anzoátegui). The project was completed sometime before 2019, because it was described as "reopening" after renovations in February 2019. In August 2021, the plant was reopened again, following further renovations.
Number of official sources
6
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]
Banco de Desarrollo Económico y Social de Venezuela (BANDES) [State-owned Bank]
Venezuela Ministry of Energy and Mining [Government Agency]
Pequiven - La Corporación Petroquímica de Venezuela [State-owned Company]
AGROCHEM [Joint Venture/Special Purpose Vehicle]
Sinochem Corporation [State-owned Company]
Agropatria [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.
Loan Details
Maturity
3 years
Interest rate
2.828%
Grant element (OECD Grant-Equiv)
4.285%