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CDB provides $60 million loan for Construction of 3 Biopesticide Production Plants and a Laboratory
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Banco Nacional de Cuba |
| Country | Cuba |
| Start Date | Jan 01, 2014 |
| End Date | Dec 13, 2027 |
| Duration | 5,094 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 54749 |
Grant Description
CDB provides $60 million loan for Construction of 3 Biopesticide Production Plants and a Laboratory In 2014, Hu Huaibang of China Development Bank and René Lazo Fernández of the Cuban National Bank signed a financing agreement detailing a $60 million USD loan for the construction and purchase of equipment and supplies for three biopesticide production plants and a high-security laboratory in Cuba.
One of the three production facilities to be run by Labiofam for bio-pesticides and bio-fertilizers is on the outskirts of Villa Clara. Construction started in 2014, and its expected completion was August 2016. However, according to another source, as of 8 February 2019, the project was only 78.3% completed.
The other two plants will be located in Granma and Havana. In October 2020, the second of the three plants was finished being built at Villa Clara. The setting up of equipment, however, will not be done until late 2021 due to Coronavirus restrictions. As of December 2023 the project is at 93% completion.
Staff Comments
There is some contention over the loan amount and currency: The Granma sources say that the Villa Clara plant will cost over $29 million dollars, and that China is financing the project, but they do not specifically say that the China Development Bank gave the National Bank of Cuba a $29 million loan. The Cuba Standard source says that during Xi Jingping's visit to Havana, China Development Bank chief Hu Huaibang signed an agreement that granted Cuba a loan, amount and conditions undisclosed, for the equipment and construction of three biopesticide plants. Another source claims the loan amount was 60,000,000 euros (See: Empresa Labiofam desarrolla plan de inversiones para fortalecer el sector agropecuario cubano). This project may have been funded by an export buyer's credit loan since the Cuban News Agency source says that the all of the equipment being used in the plant was imported from China using the facility (see 'Cuba keeps working..:'); however, AidData was unable to find record of this transaction in any official sources, so the flow type has been left as Loan (excluding debt rescheduling) for now.
Sources & References
- China funds construction of three biotech plants in Cuba
- Construyen en Santa Clara moderna fábrica productora de bioplaguicidas y biofertilizantes
- Empresa Labiofam desarrolla plan de inversiones para fortalecer el sector agropecuario cubano
- Labiofam irradia hacia disímiles escenarios, ¡Avanza ejecución de Planta de Biofertilizantes y Bioplaguicidas en Santa Clara
- Lupicinio International Law Firm
- Labiofam irradia hacia disímiles escenarios
- Cuba keeps working on new bioproducts plant
- Intensifican cooperación Cuba y China
- Ejecución de planta de biofertilizantes en Cuba marcha de manera satisfactoria (+Foto)
- Se ha ejecutado el 93 % de la inversión de una nueva planta de biofertilizantes y bioplaguicidas 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
Banco Nacional de Cuba
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