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China Development Bank provides Costa Rica with $900 million loan for oil refinery expansion (linked to Record ID#37285) (Suspended)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Chinese-Costa Rican Reconstruction Corporation (SORESCO) |
| Country | Costa Rica |
| Start Date | Jan 01, 2013 |
| End Date | Aug 12, 2028 |
| Duration | 5,702 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 37313 |
Grant Description
China Development Bank provides Costa Rica with $900 million loan for oil refinery expansion On December 5, 2011, China Development Bank offered Costa Rica a $900 million loan for an oil refinery in Limón, Costa Rica. The project was contracted to China National Petroleum Corporation.
In 2008, Costa Rica’s state-owned oil company, Refinadora Costarricense de Petróleo S.A. (RECOPE), and China’s state-owned oil company, CNPC International, Ltd., created a joint venture company called the Chinese-Costa Rican Reconstruction Corporation (SORESCO). SORESCO is the recipient agency in this transaction.
The purposes of the joint venture were to extend and modernize the Moín Refinery, establish a Costa Rica-China Laboratory & Training Center for Petroleum and Petrochemical Technology, and carry out a feasibility study of the Export Refinery.
These details were not solidified, however.
The refinery project was suspended in 2013 after a Comptroller General’s Office investigation determined that a conflict of interest in the environmental impact study violated the terms of the agreement.
In January 2015, CNPC engaged in talks with Refinadora Costarricense de Petróleo to re-institute the project, and a feasibility study was initiated.
However, the two sides failed to reach an agreement, and RECOPE released a statement on April 14th, 2016, announcing both its withdrawal from the SORESCO partnership and the Moín project's termination.
Staff Comments
1. The November 17, 2008 joint venture agreement can be accessed in its entirety via https://www.recope.go.cr/wp-content/uploads/2012/11/P-1636-2008-ACUERDO_RECOPE-CNPCI.pdf
Sources & References
- China to fund Costa Rica refinery revamp
- Costa Rica at Crossroads in Courtship with Beijing, 2013 China - Latin America Economic Bulletin
- Biofuels would be produced at Chinese refinery in Limón, says Costa Rica oil chief
- CNPC to set up refinery JV in Costa Rica
- Oil Alliance Between China and Costa Rica Comes to Life Again
- Costa Rica Halts $1.3 Billion China-Funded Refinery Plan
- Funding Agreed for Refinery in Costa Rica
- Biofuels Slated for Production at Limón Oil Refinery
- PROYECTO CON FINANCIAMIENTO:MODERNIZACION Y AMPLIACIÓN DE LA REFINERÍA DE MOÍN CON FINANCIAMIENTO BANCARIO: PORTAFOLIO DE INFORMACIÓN SEGÚN GUÍA DE MIDEPLAN, 1 Joint Venture Agreement between Refinadora Costarricense de Petróleo S.A. and CNPC International Ltd
- Framwork Cooperation Agreement
- China-Costa Rica Relations: a study of South-South Cooperation
- Memoria Institucional 2007-2008
- Costa Rica cancels $1.2 billion Chinese refinery project
- Business Engagement with China: A Latin America Divided
- RECOPE decidió separarse de SORESCO
- Resignation the latest chapter in a troubled refinery project 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
Chinese-Costa Rican Reconstruction Corporation (SORESCO)
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