Active Mixed AidData Chinese Aid

[China-Venezuela Joint Fund] Cerro Azul Cement Plant in Venezuela (Linked to Record ID#58677)

Funder	China Development Bank (CDB)
Recipient Organization	Banco de Desarrollo Económico y Social de Venezuela (BANDES)\|China-Venezuela Joint Fund
Country	Venezuela
Start Date	Jan 01, 2010
End Date	Jun 20, 2030
Duration	7,475 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58801`

Grant Description

[China-Venezuela Joint Fund] Cerro Azul Cement Plant in Venezuela The China-Venezuela Joint Fund funded the Cerro Azul cement plant. Construction began on the plant in 2014, however the financial commitment date is unclear. The Medium source says that construction for the Cerro Azul cement plant began in 2010.

The PDVSA source says that this plant has a production capacity of approximately 1 million metric tons of cement a year. The plant will cover over 3000 hectacres.

Pilot cement production of high quality clinker began in September 2014 and it has an estimated annual production of 1 million tons of cement. The project is being built by Iran.

Ehdasse Sanat, a subsidiary of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) is the Iranian contractor for the project.

In November 2018, it was revealed that as a result of corruption about 75% of Cemento Cerro Azul’s employees are administrative staff The China-Venezuela Joint Fund receives contributions from China Development Bank and FONDEN, and it is administered by Bandes. See Record ID#58677 for more information on the fund.

The first commitment to this fund was made in 2007.

📋 Staff Comments

The flow type is unclear, however, the Chinese part of the fund is financed by a loan, so the same is assumed here. The status of the project is unclear, but the PDVSA source from 2014 makes it seem as though construction is pretty far along at the time. The transaction amounts for all sub-projects are accounted for in the projects for the three tranches and their renewals. Because it is unclear how much funding for each project is from the Chinese side and it is unclear which tranche is funding each sub-project, the transaction amounts should not be recorded until this information is known. This project is not suspected to be a duplicate of #58479, a cement plant, as it is funded by the Exim Bank.

📚 Sources & References

2015 Minerals Yearbook Venezuela
Fondo chino-venezolano invierte $3.7 millardos en ejecución de obras.
Planta de cemento Cerro Azul: Potencia económica para el oriente
Iran Boosts Venezuela Cement Industry
Venezuela Campaign: building crisis cements Maduro's failed legacy
The Venezuelan Cerro Azul cement plant has begun clinker production
Venezuela: Minister inspects work done at cement plant
Gaceta Oficial de la Republica Bolivariana de Venezuela
China-Venezuela Economic Relations: Hedging Venezuelan Bets with Chinese Characteristics
Financiamientos desde el Fondo Conjunto Chino-Venezolano 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 de Desarrollo Económico y Social de Venezuela (BANDES)|China-Venezuela Joint Fund

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