Lawfuel.com – Chadbourne & Parke represented the winning consortium, comprising ACWA Power International, Samsung C+T Corporation and MENA Infrastructure Fund, in relation to the development and US$ 2 billion debt financing of the Qurayyah independent power project in Saudi Arabia.
The financing of the 3,927MW power project closed on April 24, 2012, making it the third of its type and the largest independent power project in the world.
“We are delighted to have been involved in a deal of this scale,” said Chadbourne London partner Agnieszka Klich. “Chadbourne’s Project Finance group is a market leader in providing legal representation in connection with the development and financing of conventional power projects. This latest IPP transaction highlights the strength of Chadbourne’s Project Finance practice in the Middle East. “
The financing on the deal was uniquely structured, involving both conventional financing and a Murabaha Facility – a Shariah compliant form of trade finance that is based upon letters of credit. The project will deliver 3,927 MW of electricity to Saudi Electricity Company (“SEC”) under a 20 year Power Purchase
Agreement commencing on 30 June, 2014. It represents another major development by the Saudi power sector to help meet the rapidly increasing power demand in Saudi Arabia.
Siemens will provide all major equipment and electrical systems and Samsung C+T will Engineer, Procure and Construct the project as the EPC contractor. Once completed, the plant will be operated by The First National Operation & Maintenance Company (NOMAC) a subsidiary of ACWA Power under a long-term Operation & Maintenance contract, with Siemens providing parts and services for the gas turbines under a Long-Term Service Agreement (LTSA) with NOMAC.
The project, to be developed on a BOO (build, own, operate) basis, will be located at Qurayyah, on the eastern coast of Saudi Arabia adjacent to existing SEC facilities.
Chadbourne’s cross-border team on the deal included partner Agnieszka Klich and associate Ali Donat from the London office, and Dubai associates Mark Norman and Derek Kirton.
