[China-Venezuela Joint Fund] CDB loans USD 150 million for China-Venezuela joint venture drill factory (linked to project ID#58677 and 94074)
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
No
Category
Project lifecycle
Description
On June 17, 2008, the China-Venezuela Drill Company (Spanish: La Industria China Venezolana de Taladros (ICVT)) was created. ICVT is a joint-venture between Petróleos de Venezuela, S.A (PDVSA), the Venezuelan state-owned oil company and China Petroleum Technology & Development Corporation, a subsidiary of China National Petroleum Corporation (CNPC). The project is financed with USD 150 million from the China-Venezuela Joint Fund (see project ID#58677). See project ID#94074 for the joint-venture created by this loan. 85% of the company is owned by PDVSA, and 15% is owned by China Petroleum Technology & Development Corporation. It is located in Anzoátegui state. The total project cost is USD 341 million or VEF 2,148,330,000. A memorandum of understanding for the project was signed in Beijing in April 2006, and the contract was signed in Caracas on March 27, 2007. The joint-venture company was then created on June 17, 2008. This is one of the oldest China-Venezuela cooperation projects. Sources vary on how many drills this project has produced. In 2011, President Hugo Chavez said that nine drills had already been produced by the project and put into operation. He also said that the factory would produce 16 drills in total in the first phase. The manufacturing phase was to start in 2012. Opposition sources have argued that no drills were ever produced, and that the drills brought from China for the Venezuelan market were insufficient.
Additional details
1. No transaction amount is recorded because it is captured in the China-Venezuela Joint Fund (see project ID#58677)
Number of official sources
6
Number of total sources
7
Details
Cofinanced
No
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]
Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]
China Petroleum Technology & Development Corporation (CPTDC) [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.