25 October – LAWFUEL – The Law News Network – Allen & Overy said today that Poland’s largest ever project finance development in the power sector, the EUR550 million Patnow II lignite-fired power plant, is a major boost to the nation’s power supply and has secured jobs in the mining and power sectors. The project, located in Konin, calls for the replacement of two decommissioned generating units with a state-of-the-art power plant.
“The project represents more than five years of hard work by the sponsor to design, develop and finance a next generation power plant for the Polish market. From a wider perspective, the project illustrates the potential for businesses in new accession countries to participate in the international project finance market and demonstrates the ability of sponsors to meet higher environmental and lender standards. It is also a sign of the increasing integration of Poland into the wider European market,” said Calvin Walker, partner in Allen & Overy’s Project Finance Practice.
The 460MW plant was developed by Zespol Elektrowni Patnow Adamow Konin S.A. (“ZEPAK”) through its project company, Elektrownia Patnow II Sp. z o.o.(” Patnow II”). The contractor is SNC-Lavalin of Canada.
Allen & Overy advised the lenders comprising European Bank for Reconstruction and Development, Export Development Canada, West LB, Bank Polska Kasa Opieki S.A. and BRE Bank S.A., who provided financing of EUR226.5 million.
The Allen & Overy team was led by partners, Jonathan Brayne and Calvin Walker in London, supported by Tomasz Kawczynski, Sonia Wall, Udayan Mukherjee and Magdalena Brzozowska. The Polish law input was led by partner, Arkadiusz Pedzich with Jacek Jonek advising hedging counterparties.