Venezuela and China are to organize a USD 6 billion fund to finance large infrastructure projects in the South American country, the Venezuelan Ministry of Foreign Affairs announced.

The Bank of Development of China is to contribute USD 4 billion and Venezuela USD 2 billion to the so-called Large Financing Fund. The move to organize this bilateral mechanism was made last Sunday by senior Venezuelan officials and representatives of the Chinese bank visiting Caracas until October 24, Efe reported.

The Large Financing Fund is to finance the construction of a railroad network, freeways, roads and houses in Venezuela.

Venezuela has initialed a number of agreements with China, including a deal under which Caracas is to supply 500,000 bpd of crude oil to China in the middle term. Both countries have also inked an accord providing for the construction of oil supertankers for Pdvsa. The Venezuelan and Chinese delegations ratified a convention for the construction of "Simón Bolívar" satellite for Venezuela.