First, the oil question:
June 1: Hercilio Rivas, PDVSA's R&D chief, said the company needs a "floor" of $70 a barrel to reach a target to pump 5 million barrels a day in 2020.
September 22: Oil Minister Rafa Ramirez said Venezuela aims to build an oil price floor of $80 a barrel to boost its oil production in the coming years, to double oil production to 6 million barrels a day by 2030
October 3: Primo Hugo said the government will propose a budget on Oct. 15 based on an average oil price of $40 a barrel, economic growth of 0.5 percent and inflation of 20 percent to 22 percent.
And now, the power question:
July 29: The Inter-American Development Bank approves an $800 million loan to Venezuela for the the completion of the Manuel Pilar (also known as Tocoma) hydropower project in the Lower Caroní River Valley. The IDB loan is for a 20-year term, with a six-year grace period, at an adjustable interest rate.
October 14: The IDB approves a $200 million loan to help Venezuelan state-run power company CORPOELEC streamline its operations and implement a new technology platform. The loan is for a 20-year term with a five-year grace period and carries a LIBOR-based variable interest rate. The Venezuelan government will provide an additional $50 million in local counterpart funds.
October 20: The IDB approves an $800 million loan to CORPOELEC, part of a $1.75 billion credit line for the development of a $4.3 billion project to boost Venezuela's power-generation capacity.
October 20: The IDB approves a $1.75 billion loan to finish construction of the Manuel Pair [sic] Hydroelectric Dam which should be operating by 2012.
Why Stop Making Sense?
Why a budget?
Why a big loan?
Where do the odd loan amounts come from?
Where do the odd oil prices come from?
What will the government do next?
Stop Making Sense
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