China to help Venezuela build three power stations

* Funding is part of deal agreed in April

* Among 19 projects worth nearly $5 billion

* Ties growing between Beijing and Caracas

By Daniel Wallis

CARACAS, July 29 (Reuters) - China will help Venezuela build three 300 megawatt (MW) electricity generating plants in return for oil deliveries under a long-term $20 billion financing deal, the Latin American OPEC nation said on Thursday.

Three months ago, Beijing said the China Development Bank had signed a "framework financing agreement" worth about $20 billion with Caracas, half to be paid in dollars and half in yuan, but gave few other details. [ID:nTOE63J06H]

The Venezuelan government said 19 development projects costing almost $5 billion had been agreed during bilateral talks in its capital on Thursday, including constructing the three power stations at a cost of about $520 million.

"This financing is the counterpart ... of crude oil and oil products Venezuela has been sending to China and represents a form of payment that has been agreed with China's government," Venezuelan Vice-President Elias Jaua said in a statement.

The Andean nation suffered severe electricity shortages during a drought this year that slashed hydropower production and led to power rationing in much of the country.

Venezuela's socialist President Hugo Chavez says he wants to boost oil sales to Beijing and diversify away from the country's top customer, the United States.

Venezuela said in April it was sending China more than 460,000 barrels per day (bpd) of crude and oil products, a 21 percent increase from the year before. [ID:nN12196841]

Chinese energy companies are involved in developing the Latin American country's massive hydrocarbon reserves. In February, the China National Petroleum Company was awarded a stake in the Junin 4 block of its vast Orinoco extra heavy crude belt, which is seen as one of the biggest in the world.

Relations outside the energy sector have also expanded in recent years: China built and launched a $400 million communications satellite for Venezuela in 2008, reducing the dependence of Caracas on U.S. and European satellites.

The Chavez government has bought Chinese radar equipment to monitor its borders, and Beijing also provided it with military training jets after Washington imposed an embargo in 2006 on sales of U.S. weapons parts to Venezuela. [ID:nN06144122] (Editing by David Gregorio)