CDB provides RMB 4 billion via Tranche B of $2.052 billion oil-backed loan facility in June 2011 (Linked to Record ID#69319, #58591, #39060, #58593, #39063, #60794, #39281)

📋 Staff Comments

1. The transaction was governed by a Facility Agreement between CDB and the Ecuadorian Ministry of Finance and by a Four Party Agreement (between CDB, PetroChina, Ecuador's Ministry of Finance, and PetroEcuador) that links the Facility Agreement to the Oil Sales and Purchase Contract between PetroEcuador and PetroChina. The $2 billion Facility Agreement, which was signed by CDB and Ecuador's Ministry of Finance on June 27, 2011, can be accessed in its entirety via https://www.dropbox.com/s/afwp3urs0tm8v45/1.2-Facility-Agreement-dated-27-June-2011-CDB-II.pdf?dl=0. The Four Party Agreement, which was signed by CDB, PetroChina, Ecuador's Ministry of Finance, and PetroEcuador on June 27, 2011, can be accessed in its entirety via https://www.dropbox.com/s/6wdgt4p44xzx3fc/1.1-Four-Party-Agreement-dated-27-June-2011-CDB-II.pdf?dl=0. The Oil Sales and Purchase Contract that PetroEcuador and PetroChina signed on June 24, 2011 can be accessed in its entirety via https://www.dropbox.com/s/ad22ye6ld5bbx4y/ContratosModificatorios2011203.pdf?dl=0.
2. From 2010 to 2016, the Government of Ecuador entered into four separate loan agreements with China Development Bank totaling $7 billion which are related to a multi-party contractual structure that involves crude oil delivery contracts entered into with PetroChina and Unipec. Deliveries under these contracts are based upon international spot prices, such as WTI plus or minus a spread, plus a premium paid due to the term of the contracts. The spread is calculated using Argus, a crude oil price assessment publication (“Argus”) and the quality of crude oil as measured by the American Petroleum Institute. Under these agreements, Ecuador is required to invest the loaned amounts in specific infrastructure projects or programs in Ecuador. The $1 billion loan agreement with CDB in 2010 is captured via Record ID#35865. The $2 billion loan agreement with CDB in 2011 is captured via Record ID#69319 and ID#69320. The $2 billion loan agreement with CDB in 2012 is captured via Record ID#36002, and#58827. The $2 billion loan agreement with CDB in 2016 is captured via Record ID#58839 and ID#58842.
3. Some sources list the Minas-San Francisco Dam (Record ID#35982) as part of the discretionary component, however, the funder has been identified as China Eximbank.
4. This CDB loan was signed shortly after a renewed $1 billion prepayment facility agreement was signed by PetroChina and PetroEcuador (as captured via Record ID#36358).
5. The Ecuadorian Ministry of Finance loan identification number for Tranche A is 23163000. The Ecuadorian Ministry of Finance loan identification number for Tranche B is 23164000.

📚 Sources & References

• $ 200 millones de crédito anterior de China fueron a petróleo y seguridad, 2019 Bond Prospectus Government of Ecuador, 27 June 2011 Four Party Agreement, 5th UPDATE: Ecuador Negotiates $2 Billion Loan With China
• A Line in the Equatorial Forests: Chinese Investment and the Environmental and Social Impacts of Extractive Industries in Ecuador
• Banco de Desarrollo de China presta 2000 millones de dolares a Ecuador
• Bartering Globalization: China’s Commodity- backed Finance in Africa and Latin America
• Boletin de Ejecucion Presupuestaria
• Boletín de Ejecución Presupuestaria Octubre - Diciembre 2011
• Botswana to receive donation of COVID-19 vaccines from China
• BUILDING DEVELOPMENT FOR A NEW ERA: CHINA’S INFRASTRUCTURE PROJECTS IN LATIN AMERICA AND THE CARIBBEAN
• China aprobó préstamo por $ 2.000 millones
• China Bank Approves $2 Billion Loan to Finance Ecuador Budget
• China
• Ecuador Sign $2 Billion Loan Deal
• China
• Ecuador Sign $2 Billion Loan Deal
• China, the Politic and Economic Strategic Partner of Ecuador in the Era of the Socialism of the Twenty - first Century
• China-Latin America Finance Database
• Chinese Investments in Ecuador
• Contratos Modificatorios
• Ecuador improves its debt management
• Ecuador
• China Development Bank Sign $2B Loan - Ecuador's Government
• Ecuador: Government prepays Chinese loan
• El detalle de los contratos de crédito externos o internos
• How China Lends: A Rare Look into 100 Debt Contracts with Foreign Governments
• Minutes of Meetings between CDB and Ecuador's Ministry of Finance
• Repositioning Chinese Development Finance in Latin America: Opportunities for Green Finance
• Repositioning Chinese Development Finance in Latin America: Opportunities for Green Finance
• Resource-Backed Loans: Pitfalls and Potential
• The New Banks in Town: Chinese Finance in Latin America
• The New Banks in Town: Chinese Finance in Latin America
• US$2,000,000,000 Equivalent Facility Agreement
• WSJ UPDATE: Ecuador Looks To China For $2 Billion Loan
• 厄瓜多尔政府与国开行签署20亿美元贷款协议 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.