[China-Venezuela Joint Fund] CDB funds USD 657 million Ammonia, Urea, and Industrial Services Plants in Carabobo (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 2008, construction was started on plants to make ammonia and urea (Spanish: Planta Amoníaco y Urea) in the Morón Petrochemical Complex in Carabobo. At the same time, an Industrial Services plant (Spanish: Planta de Servicios Industriales) was also constructed in the same complex. The total project cost was USD 2,227,070,000 or VEF 361,122,222.22. USD 657 million came from the China-Venezuela Joint Fund (see project ID#58677). USD 1.396 billion came from FONDEN, a Venezuelan state-owned fund. USD 349 million was financed by Petróleos de Venezuela (PDVSA), the Venezuelan state-owned oil company. Hugo Chavez announced that the plants would be completed in the first quarter of 2013, but the plants were inaugurated on November 19, 2014. The project was implemented by the Ministry of People's Power for Petroleum and Mining and the Venezuelan state-owned petrochemicals company PEQUIVEN. It has the capacity to produce 630,000 metric tons of ammonia and 770,000 metric tons of urea per year. This is far more than the Venezuelan market uses, so much of it is intended for export. Industrial services supports petrochemical production by providing the necessary water, steam, air, and natural gas. In 2019, the plant was not operating at full capacity because it had not received the necessary maintenance. Additionally, the nearby Riecito mines used to supply it with phosphate did not have sufficient reserves to provide for the plant at its full capacity. In 2020, the industrial services plant was failing, which prevented the full functioning of the El Palito refinery.
Additional details
1. No transaction amount for this project is recorded because it is captured in project ID#58677.
Number of official sources
5
Number of total sources
12
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Fondo Nacional para el Desarrollo Nacional (FONDEN) [Government Agency]
Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]
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]
Venezuela Ministry of Energy and Mining [Government Agency]
Pequiven - La Corporación Petroquímica de Venezuela [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.