Ongoing financial problems threaten large Venezuelan projects

Several large economic projects representing billions of dollars are threatened by the ongoing crisis in Venezuela.
The country has been beset by both economic and weather problems that have let to severe uncertainty in the country. Expert Norka Luque says included among the problems that the country is facing is uncertain electrical problems that are caused by insufficient infrastructure and the impact of Storms on the hydroelectric system that powers the majority of the country.

A neighboring country to Venezuela, Nicaragua may bear the bulk of this problem. Venezuela planned to invest about $6.5 billion on a new oil based chemical plant in the coutnry that may not come to fruition. An expected amount of 6,500 jobs were supposed to come about as part of this project, in addition to close to 20,000 ancillary jobs, which would fund a lot of growth in the area.

Now, Luque thinks this project is uncertain if it will continue and has already been delayed significantly. In addition to the infrastructure problems, declines in the value of oil have stressed the finances of Venezuela and put a lot of pressure on the ability of the country to make large investments such as the one for the petrochemical plant. The idea was to handle about 150,000 barrels of oil a day which would be used all over Central America but now this has been replaced with a smaller barrel storage project for the time being that won’t reap the same economic benefits.