Transaction Marks One of the First Privatizations of Electricity Distribution in Africa
LONDON — March 8, 2005 – LAWFUEL – The international law firm of Chadbourne & Parke represented Globeleq, Eskom Enterprises and Umeme Ltd in a deal which enables Umeme to manage and operate the electricity distribution system in Uganda under a 20-year concession agreement with the Government.
The transfer of the distribution system, through a lease, to Umeme, announced on March 1, occurred after more than two years of negotiations with the Government of Uganda and other stakeholders. It marked one of the first privatizations of electricity distribution in Africa
Under the concession agreement, Umeme is committed to invest capital to improve the network infrastructure and establish new connections within the existing distribution area over the next five years.
Umeme, a joint venture between Globeleq and Eskom Enterprises, is 56% owned by Globeleq and 44% by Eskom Enterprises. Globeleq is the fastest growing operating power company solely focused on the emerging markets of Africa, the Americas, and Asia. Eskom Enterprises is a subsidiary of the South African electric utility Eskom Holdings which supplies approximately 95% of the power used in South Africa and approximately 50% of the electric power consumed on the African continent.
Working on the deal for Chadbourne were project finance partner Lynne Gedanken of the London and Washington, D.C., offices and London associates Robin Mizrahi and Sasha Ferrigan.
Chadbourne has an active practice involving energy projects in Africa. This deal marks its second role in power sector projects in East Africa in recent years. In 2002, Chadbourne represented Globeleq in its acquisition of the Songo Songo gas-to- electricity plant in Tanzania, the largest infrastructure project in that country.
About Chadbourne & Parke LLP
Chadbourne & Parke LLP, an international law firm headquartered in New York City, provides a full range of legal services, including mergers and acquisitions, securities, project finance, corporate finance, energy, telecommunications, commercial and products liability litigation, securities litigation and regulatory enforcement, white collar defense, intellectual property, antitrust, domestic and international tax, reinsurance and insurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. The Firm has offices in New York, Washington, D.C., Los Angeles, Houston, Moscow, Kyiv, Warsaw (through a Polish partnership), Beijing and a multinational partnership, Chadbourne & Parke, in London. For additional information, visit www.chadbourne.com.