(AFP) – 5 days ago

CARACAS — Venezuela and China will develop an observation satellite to be built in Asia and launched from South America in 2012, according to Venezuela's science and technology minister.

Ricardo Menendez said Thursday that the earth-observation satellite, to be built at a cost of $140 million, would be used to monitor troop movements and illegal mining as well as study climate change and the environment.

"We will have a satellite with the ability to monitor our territory 24 hours a day," he told reporters at the unveiling of the project.

"The Venezuelan state will monitor the development and impact of natural phenomena such as earthquakes, floods and heavy rainfall," he added.

The contract was signed by the Venezuelan ministry and the state-owned China Great Wall Industry Corporation.

The launch was set for October 2012, four years after the launch of the "Simon Bolivar," the first-ever Venezuelan satellite, named for the Latin American independence hero and also built with Chinese aid.

"As with the first satellite, the second will be made available to other countries in Latin America and the Caribbean," Menendez said.

The two countries have forged close economic ties in recent years as leftist Venezuelan President Hugo Chavez has sought to reduce dependence on Washington.

China has invested heavily in Venezuela's oil, gas and mining sectors in recent years and has sold Caracas 18 Chinese K-8 fighter jets.

In other news: Venezuela's Chavez seeks $10.5 bln extra 2011 debt

* Says government to start issuing bonds soon

* Chavez requests extra funding for home building

* Promises money will not be wasted on bureaucracy (Adds Chavez quote about bonds, byline)

By Marianna Parraga

CARACAS, May 31 (Reuters) - Venezuela's President Hugo Chavez said on Tuesday he will seek parliamentary approval to almost double the government's debt limit this year to build thousands of houses ahead of a presidential election.

Chavez said he was requesting an extra 45 billion bolivars ($10.5 billion), giving the number in the local bolivar currency. He did not specify if the new debt will be local or international, but similar laws in the past have permitted either.

Most of the new debt will be used for housing, Chavez said, but some of the funds are for a new job creation program and disaster recovery. (140 mil for satellite??)

The socialist president will seek a new 6-year term in an election expected in December 2012 and has put housing at the center of his campaign this year. He vows to build 2 million homes in the next six years.

"This is not for bureaucracy or waste, none of that," Chavez said in reference to the additional financing. "It is urgent so we can start to issue bonds to get this money before the end of the year."

Chavez has a majority in parliament and will likely win approval for the new debt limit. In the budget approved at the end of last year the 2011 debt limit was set at 52.2 billion bolivars ($12 billion) including refinancing.

So far in 2011, Venezuela's PDVSA state oil company has issued $6.15 billion in global bonds. Analysts expect the government to issue a sovereign bond in the second half of the year.

http://af.reuters.com/article/energyOilNews/idAFN3111206420110601