Active Development AidData Chinese Aid

ICBC provides $4 billion loan to PDVSA for construction of 20,000 homes (Linked to Record ID#37918, #63032, and #94091)

$4M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Pétroleos de Venezuela S.A. (PDVSA)
Country	Venezuela
Start Date	Feb 01, 2012
End Date	May 29, 2028
Duration	5,962 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`37915`

Grant Description

ICBC provides $4 billion loan to PDVSA for construction of 20,000 homes In March 2011, PDVSA, CITIC Construction, and the Industrial and Commercial Bank of China (ICBC) signed a Memorandum of Understanding (MOU) to evaluate the feasibility of a $4 billion ICBC loan for housing projects and other projects of interest to be jointly executed between CITIC and PDVSA.

Then, in January 2012, ICBC authorities approved the $4 billion financing proposal.

The oil-backed loan was to be repaid and collateralized with PDVSA income from oil sales to China National United Oil Corporation (ChinaOil). To this end, an oil supply contract was signed by PDVSA Petróleo, HUTONG Trading, and ChinaOil.

This project is part of the Gran Misión Vivienda Venezuela (GMVV), a massive Venezuelan housing project (captured via Record ID#94091).

An initial loan disbursement of $1.5 billion took place in February 2012 to support the implementation of the Tiuna Social Housing Project (also known as the Fuerte Tiuna Housing Project).

This project involved the construction of 13,000 social housing units within the Tiuna military base (‘Fuerte Tiuna’) in Caracas.

On July 21, 2014, President Xi Jinping, accompanied by President Nicolás Maduro of Venezuela, visited the project site. By the end of 2014, over 40% of the project had been completed and 18 blocks delivered.

As of July 4, 2016, 3964 housing units had been delivered under the first phase of the Tiuna Social Housing Project, and the structure of 2,920 housing units had been capped under the second phase. Then, on July 28, 2017, a formal handover ceremony for Zone D of the Tiuna Social Housing Project took place.

A formal handover ceremony for Zone J1 of the Tiuna Social Housing Project took place on December 27, 2017.

By the end of 2017, CITIC Construction had constructed and completed 1,592 houses in 14 buildings within the D1, J1 and C2 Zones of the Tiuna Social Housing Project ‘under extremely difficult conditions’.

Nicolás Maduro Moros, President of Venezuela, attended the handover ceremony of the 2.5 millionth house in the D Zone of Tiuna city, built by CITIC Construction, on December 27, 2018, local time.

Delcy Rodríguez, Vice President of Venezuela, and Ildemaro Villarroel, Minister of Habitat and Housing of Venezuela, attended the ceremony. 1,600 local workers and 800 Chinese workers were reportedly employed to support the implementation of this project.

📋 Staff Comments

Sinosure was expected to insure the ICBC loan during the second half of 2013. However, it is unclear if this ultimately took place. This issue requires further investigation.
Some sources suggests that this transaction was meant to support the construction of 20,000 rather than 13,000 housing units. This discrepancy may be because the proceeds of the ICBC loan were also used to finance the construction of 4,537 housing units in the Palma Sola residential complex in Barinas, which was completed in 2011. This issue requires further investigation.
This project is also known was the Fuerte Tiuna Housing Complex Project. The Chinese project title is 委内瑞拉社会住房项目.
For the time being, AidData has coded the financial commitment date as January 2012. However, according to a Government of Venezuela filing with the U.S. Securities and Exchange Commission (https://www.sec.gov/Archives/edgar/data/103198/000119312517376486/d505622dex99d.htm), March 2011 is the month in which the loan agreement was signed. This issue warrants further investigation.

📚 Sources & References

Venezuela y China acuerdan USD 4.000 millones en préstamo para viviendas
The New Banks in Town: Chinese Finance in Latin America
Billion-dollar deals deepen dependence on China
Ramirez: Line of financing China-Venezuela reached 38 billion dollars
委内瑞拉明年1月将与中国签署80亿美元贷款协议－查韦斯
Venezuela y China firmaron acuerdos para desarrollo energético y de construcción
Venezuela: PDVSA Confidential Memo Reveals $ 50 Billion Debt
中信集团田国立总经理访问委内瑞拉取得圆满成功
委内瑞拉总统马杜罗出席中信建设蒂乌娜社会住房项目交房仪式
习近平参观中委合作住房项目计划建1.3万住房
CITIC Construction Venezuela Deputy GM Liu Bingxin Meets with Venezuelan VP
委内瑞拉查韦斯总统会见中信建设洪波董事长
委内瑞拉社会住房项目
Ramírez: Línea de financiamiento China-Venezuela alcanza 38 mil millones de dólares
CHINA’S FOREIGN DIRECT INVESTMENT IN LATIN AMERICA AND THE CARIBBEAN
Gobierno impulsa planes de vivienda mediante alianza con empresa chinas por $4.000 millones
中企改变生活方方面面—听委内瑞拉人民怎么说－转自新华社, http://www.avn.info.ve/node/134000
Exhibit D to the Bolivarian Republic of Venezuela's Annual Report on Form 18-K
CITIC Annual Report 2015
La orgía de endeudamiento de PDVSA con China
Parte IV del Memo a Maduro
China-Venezuela Economic Relations: Hedging Venezuelan Bets with Chinese Characteristics
China’s ties with Venezuela at a key juncture
President Nicolás Maduro of Venezuela Attends Key Handover Ceremony of CITIC Construction’s Tiuna Social Housing Project
Venezuelan President Nicolás Maduro Moros Attends and Hosts Handover Ceremony of CITIC Construction’s Tiuna Social Housing Project
Roundup: Chinese company to build new residential zones in Venezuela
Xi Jinping Visits China-Venezuela Cooperative Housing Project
Government of China Public Record in Australia
Venezuelan President Nicolás Maduro Moros Attends Handover Ceremony of D02 Building
Financiamientos desde el Fondo Conjunto Chino-Venezolano
Trece mil viviendas se construyen en Fuerte Tiuna con el apoyo de China
中委两国互利合作助力委内瑞拉民众“住有所居、居有所安”
委内瑞拉社会住房项目
CITIC: principal socio chino del gobierno de Venezuela, en serios problemas
Hay algo podrido en Fuerte Tiuna 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.