Completed Mixed AidData Chinese Aid

CDB provides $750 million loan to BNDES for construction of Third Section of GASENE Pipeline

$750K USD

Funder	China Development Bank (CDB)
Recipient Organization	Brazilian Development Bank (BNDES)
Country	Brazil
Start Date	Dec 27, 2007
End Date	Sep 17, 2026
Duration	6,839 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`35918`

Grant Description

CDB provides $750 million loan to BNDES for construction of Third Section of GASENE Pipeline On December 27, 2007, China Development Bank (CDB) provided a $750 million loan to the Brazil Development Bank (BNDES), which it then on-lent to Transportadora GASENE S.A. (a special purpose vehicle and wholly-owned subsidiary of Petrobras, the Brazilian national petroleum company).

The loan fully disbursed.

📋 Loan / Grant Terms

📅 Maturity15 years

⏳ Grace Period3.5 years

However, its other borrowing terms are unknown.

Transportadora Gasene was responsible for the construction and future ownership of pipelines for transport of natural gas with a total length of 1.4 thousand kilometers and a transport capacity of 20 million cubic meter per day, connecting the Cabiúnas Terminal in Rio De Janeiro to the city of Catu, in the state of Bahia.

The Gasene project sought to establish a natural gas pipeline between northeast and southeast Brazil. The CDB loan was to be used to fund the Cacimbas-Catu phase (section) of the project (also known as GASCAC or GASCAV). BNDES was also expected to provide counterpart financing for the Cacimbas-Catu phase (section) of the project.

The pipeline project was broken into three sections: the Cabiunas-Vitoria section, originally scheduled for completion in 2008; the Vitoria-Cacimbas section, which became operational in November 2007; and the 946 km Cacimbas-Catu section, funded by CDB.

Previously, in 2004, BNDES and Transportada Gasene signed an agreement for the construction of the $1.3 billion GASENE Southeast-Northeast Integration Pipeline in Brazil.

Sinopec was responsible for the construction of the Cabiunas-Vitoria (first) section and Cacimbas-Catu (third) section of the pipeline. Construction of the third section began during the first quarter of 2008 and ended in March 2010. The third section of the pipeline was officially commissioned and put into use in September 2010.

📋 Staff Comments

The loan's borrowing terms (15-year maturity, 3.5-year grace period, and 2.4% interest rate) are recorded in the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/scl/fi/3gmk0ktgl7wsmu9zz1sjf/Borrowing-terms-of-official-sector-loans-from-China-to-Brazil-DRS-January-2024-extraction.xlsx?rlkey=92sq9hpzb7cct4ezn59tcd89u&dl=02. China Eximbank was originally set to fund the project (see https://www.dropbox.com/s/bk069tyi3i28wz0/brazil-loan.pdf?dl=0); however, a contract could not be reached with BNDES over the percent of local labor to be used.
The Chinese project title is GASENE天然气管道项目.

📚 Sources & References

Brasil e China fazem acordo para obras de gasoduto
BANCO DE COMÉRCIO EXTERIOR CHINÊS FINANCIARÁ GASODUTO NO BRASIL
Parceria para construir gasoduto
Petrobras cancela parceria para o Gasene
Gasene: financiamento sai até junho
Petrobras assina acordo com estatal chinesa para o desenvolvimento de parcerias
Petrobras assina memorando de entendimento com estatal chinesa
Petrobras faz acordos de US$ 3 bi para gasodutos
Petrobras approves US$362mn BNDES loan for Gasene
China’s oil Grand Strategy The impact of target state institutions on the success or failure of Chinese economic statecraft
South-East to North-East Gas Pipeline (Gasene)
Brazil
President Yang Zilin Visited Brazil and Signed Agreements Regarding Gasene Gas Pipeline and Furnace Projects
GASENE
Maior empresa chinesa é parceira da Petrobras em novo gasoduto
中国石化承建巴西GASENE管道竣工
Soft Power in China's Foreign Policy
Chinese foreign direct investment in Latin America and the Caribbean
China on the Ground in Latin America: Challenges for the Chinese and Impacts
Brazil: China’s BDC and Sinopec involved in building of gas pipeline
HOME RI PETROBARAS TO BEGIN CONSTRUCTION OF THE THIRD SECTION OF GASENE
BNDES signs contracts of R $ 4.5 billion for the Gasene Project
China-Latin America Finance Database
Form 20-F 2008
Petrobaras to begin construction of the third section of gasene
驻巴西使馆临时代办祝青桥出席国家开发银行里约热内卢代表处开业仪式
PETROBRAS-CHINA RELATIONS: TRADE
INVESTMENTS
INFRASTRUCTURE PROJECTS AND LOANS1
国家开发银行基本情况介绍, 2008 financial statements, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020 q1, 2020 q2
Borrowing terms of official sector loans from China to Brazil DRS January 2024 extraction 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

Brazilian Development Bank (BNDES)

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