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During the recent (August 3rd) inauguration of the exposition “China-Venezuela: Strategic Alliance for the Future”, Wilmar Castro Soteldo, minister of Production and Commerce, expressed that the implementation of the program “mil por mil” (1000x1000) for the Promotion and Development of Manufacturing Companies -with the participation of entrepreneurs from the People’s Republic of China and Venezuelan investors-, which is intended to stimulate the growth and development of small and medium local entrepreneurs, could generate a billion dollars in investments.

Castro informed that the program will be carried out by the National Institute for the Development of the Small and Medium Industry (Inapymy), and that it will encourage investment; especially in the sectors with exporting potential, namely aluminium, plastics, agro-industry, chemical products, and telecommunications.

This project required the creation of a High Level Rating Commission, integrated by two representatives of the China Beiya Escom International organisation (Bescom S.A.) and two of Inapymi; among whose functions will be to select foreign investors, supervise the necessary steps to perfect the agreements, and verify the operation of the companies.

The head of the Ministry of Production and Commerce (MPC) explained that the one thousand selected Asian inverters, will provide the necessary capital and technological know-how, for the installation of the enterprises in national territory, while the same number of Venezuelans will be in charge of the development and operation of the manufacturing companies. This means that a new association will be created, with the payment of 50% of the company’s social capital, payable in 5 years, whether in dividends or in profits, according to each one’s share.

Once the agreement is subscribed, Inapymi will be in charge of several tasks: elaborating a list of strategic areas for the execution of projects of national interest, promoting the Venezuelan entrepreneurial sector in the participation of business rounds with China, procuring the administrative permits for the constitution and operation of the qualified companies, and analysing with the banking sector, the possibility of subscribing financial agreements for the projects.

On its part, Bescom S.A. will promote the project among the investors in Southeast Asia and present -within two months after their consignation- the projects before the High Level Rating Commission. Besides organising the binational business rounds, it will prepare the regulations and documentation related to the application, qualification, and development of the projects as well as the initiation of operations of the manufacturing companies, with the support from Inapymi.

Minister Soteldo also mentioned that other projects will be carried out with the participation of the Ministry of Infrastructure (Minfra). One of them is the construction of a driveway that will link the Atlantic Ocean with the Pacific Ocean; its starting point will be the junction of the Orinoco and Caroní rivers, in Bolívar state. Another project is a housing program, under the philosophy of integral cities (with all the necessary services), with the purpose of decreasing the housing deficit in the country.

Finally, he informed that there are plans to develop a feasibility study of the construction of a coal-powered electricity plant in Zulia state, and possibly in Falcón. This program will be executed by the Ministry of Planning and Development(MPD), the Corporation for the Development of Zulia(Corpozulia), and one of the state owned electricity generation companies, Cadafe. The last project; promotion of oil exploration and extraction in Angola and Venezuela, will be developed by Pdvsa with the support of Angolan entrepreneurs from both countries.