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Overview

[China-Venezuela Joint Fund] CDB funds USD 133 million Petrocasas Ventanas I factory (linked to Record ID#58677)

Commitment Year•2008Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 19, 2008
End (actual)
Jul 6, 2012

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)

Cofinancing agencies

Government Agencies

  • Fondo Nacional para el Desarrollo Nacional (FONDEN)

Receiving agencies

Government Agencies

  • Government of Venezuela

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 Energy and Mining

State-owned Banks

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

State-owned companies

  • Pequiven - La Corporación Petroquímica de Venezuela

Collateral providers

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Loan description

[China-Venezuela Joint Fund] CDB funds USD 133 million Petrocasas Ventanas I factory

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 agreement) 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.

Narrative

Full Description

Project narrative

On October 19, 2008, work began on the Petrocasas Ventanas I factory. The project cost a total of USD 133,970,000 or VEF 21,265,079.35. The project is located in Ciudad Alianza, Guacara parish, Guacara municipality, Carabobo state. It was financed by FONDEN, a Venezuelan state-owned development fund, and the China-Venezuela Joint Fund (see Record ID#58677). The factory was inaugurated on August 6, 2012. The purpose of the factory was to produce doors and windows for petrocasas, or "oil houses", which are mass-produced pre-fabricated houses for Venezuelan families. This project was implemented by the Ministry of People's Power for Petroleum and Mining and PEQUIVEN, the Venezuelan state-owned petrochemicals company. In August 2012, Venezuelan opposition presidential candidate Henrique Capriles Radonski claimed that the factory inaugurated on August 6, 2012, was the same as a similar factory constructed in 2007. PEQUIVEN denied the charges.

Staff comments

1. No transaction amount is recorded because it is already captured in Record ID#58677.