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ICBC pledges USD 9 billion loan to Ecuador for Pacifico Refinery
| Funder | Industrial and Commercial Bank of China (ICBC) |
|---|---|
| Recipient Organization | EP Petroecuador |
| Country | Ecuador |
| Start Date | Jun 06, 2013 |
| End Date | May 26, 2027 |
| Duration | 5,102 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 35970 |
Grant Description
ICBC pledges $9 billion USD loan to Ecuador for Pacifico Refinery On June 6, 2013, China National Petroleum Corporation (CNPC) and PetroEcuador signed a Memorandum of Understanding for the development of the Refinery of the Pacific.
Project ownership is expected to be divided among the three developers: PetroEcuador at 51%, CNPC with 30%, and PDVSA at 19%. The project was initially estimated to cost $10 billion, and would have been Ecuador's largest infrastructure project. Around $1.5 billion was sunk to prepare the site for construction.
ICBC was also set to loan $2 billion to PetroEcuador, and an additional $7 billion in September.
However, on August 2, the financing was indefinitely delayed, because there was a "very strong change from Chinese authorities," according to President Correa.
This was in reference to President Xi Jinping's newly launched anti-corruption operation, which an included an audit commission arriving in Ecuador to review all ongoing projects.
While there is limited information provided about the findings of the audit, ICBC reportedly confirmed it was no longer involved with the project in September 2014 to a representative to an environmental advocacy group. Mention of CNPC's share in the refinery were not mentioned in future reports on the status of the project.
That status is currently 'paralyzed,' as there are serious financial disputes with PDVSA. The current investment in the project is $1.5 billion, of which Venezuela contributed only $200 million.
On August 15 2017, Ecuadorian President Lenin Moreno announced that the Pacific Refinery project would be completed only with private investment, which was sought with a project revalued at $11 billion under the government’s “Invest Ecuador 2018” program.
In March 2018, the company Refinería del Pacífico (RDP), which was originally created to carry out the project, began liquidation proceedings.
In 2019, the Pacifico Refinery was part of a special independent international audit into $4.9 billion worth of oil-related infrastructure investment in Ecuador.
Sources & References
- Ecuador wants China to participate in refinery project
- Ecuador Negotiates With China's ICBC 70% Financing for Refinery Project
- CNPC Eyes Ecuador Refinery
- China CNPC interesada en refinería del Pacífico Ecuador:mtro
- Ecuador business: Chinese firms to finance Pacifico refinery
- Ecuadorian Minister Hopeful That Chinese Investors Will Join Refinery Project
- CNPC
- ICBC In Talks To Join Refineria Del Pacifico -Ecuador Minister
- CNPC in talks with Ecuador over $12.5b refinery
- CNPC to join Ecuador
- Venezuela in the Pacifico refinery project
- China's CNPC Expects Ecuador Refinery
- Exploration Deal by End-2013
- Ecuador Expects To Sign Contract To Build Refinery in June
- China se Sumara como socio y financiara la Refineria Pacifico en Ecuador
- La Refinería del Pacífico tiene un 12% de avance
- China to fund giant oil refinery in Ecuador
- Pacífico Eloy Alfaro Delgado Refinery
- Chinese 'Loan-for-Oil' Deals in Brazil
- Venezuela, and Ecuador: Local Concerns and Perceptions
- 厄瓜多尔太平洋炼油厂项目计划于2017年完成
- China’s Advance in Latin America Has more Challenges than Xi’s Visit Suggests
- PetroChina's Opportunities in Latin America
- Ecuador expects $9 bln in Chinese bank funding for oil refinery
- BEIJING
- BANKS AND BARRELS: CHINA AND OIL IN THE ECUADORIAN AMAZON
- Ecuador expects to sign deal in August on $2 bil loan for new refinery
- China and Ecuador to Negotiate Credit for Pacific Refinery Este contenido ha sido publicado originalmente por Diario EL COMERCIO en la siguiente dirección: http://www.elcomercio.com/actualidad/xijinping-china-firma-convenios-ecuador.html. Si está pensando en hacer uso del mismo, por favor, cite la fuente y haga un enlace hacia la nota original de donde usted ha tomado este contenido
- China to invest $9 billion in Ecuador oil refinery
- Going Out
- But Going Green? Assessing the Implementation of China's Green Credit Guidelines Overseas
- Pacific Refinery
- PDVSA impuso sus intereses en la creación de la Refinería del Pacífico
- La Comisión Auditora
- Ecuador audit finds $2.5B lost in oil infrastructure corruption
- New oil minister faces uphill path in Ecuador
- Refinería de Manabí: el proyecto fue presentado a importantes inversionistas extranjeros
- Andes Project
- Refinería del Pacífico: Ecuador's white elephant? 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.
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EP Petroecuador
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