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CDB contributes to $517 million syndicated PxF facility for 175MW Juan Manuel Valdez Guiria Power Plant Construction Project
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Unspecified PDVSA SPV |
| Country | Venezuela |
| Start Date | Jun 01, 2012 |
| End Date | Jun 29, 2029 |
| Duration | 6,237 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 105093 |
Grant Description
CDB contribution to $517 million syndicated PxF facility for 175MW Juan Manuel Valdez Guiria Power Plant Construction Project In June 2012, a special purpose vehicle and wholly-owned subsidiary of Petróleos de Venezuela, S.A. (PDVSA) signed a $517 million syndicated PxF facility with Deutsche Bank, WestLB, Banco Espírito Santo (BES), Natixis, China Development Bank (CDB), Banco de Venezuela, Banco del Orinoco, Banco Nacional de Credito, Fondo de Proteccion Social, and Banco Provincial Overseas for the 175MW Juan Manuel Valdez Guiria Power Plant Construction Project.
CDB reportedly contributed EUR 75 million.
The transaction was structured as a prepayment from a special purpose vehicle to a subsidiary of PDVSA whose performance was guaranteed by PDVSA. Under the prepayment structure, the funds were to prepay the export of crude oil and related oil products.
PDVSA was then to use the funds to finance capital expenditures related to the 175MW Juan Manuel Valdez Guiria Power Plant Construction Project.
The purpose of the EUR 709 million project was to construct the 175MW Juan Manuel Valdez Guiria Power Plant in Güiria within Sucre state (exact locational coordinates: 10.562024, -62.310042). The project also involved the development of pipelines bringing offshore gas to the power plant. Construction began in October 2012.
The power plant was officially inaugurated on May 11, 2018.
Staff Comments
1. A pre-export finance (PXF) facility is an arrangement in which a commodity producer gets up-front cash from a customer in return for a promise to repay the customer with that commodity (possibly at a discount) in the future. PXF funds may be advanced by a lender or syndicate of lenders to a commodity producer to assist the company in meeting either its working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or its capital investment needs (for example, investment in plant and machinery and other elements of infrastructure). PXF facilities are usually secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited. There are two key documents in prepayment finance transactions: a contract providing for the advance payment by the offtaker to the producer for the purchase of goods/commodities (the 'Prepayment Contract'), and a loan agreement between a lender and the offtaker (the 'Offtaker Loan Agreement') under which the advance payment is financed.
Sources & References
- Venezuela's PDVSA closes structured trade financing
- PDVSA gas construye planta eléctrica en Güiria
- PDVSA inspeccionó Planta Termoeléctrica “Juan Manuel Valdez” de Güiria
- Plan Nacional de Infraestructura 2021 - 2033
- Ciclos Abiertos: CCA Güiria
- COMISIÓN MIXTA PARA EL ESTUDIO DE LA CRISIS ELÉCTRICA EN EL PAÍS INFORME FINAL
- Informe Anual Elecnor 2015
- Juan Manuel Valdez power station
- PDVSA - Bolivarian Government inaugurates Juan Manuel Valdez Thermoelectric Plant in Guiria Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Unspecified PDVSA SPV
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