Paul Hastings Advises Lenders in the Financing of a 200 Megawatt Power Project in Cebu, Philippines
Hong Kong and Tokyo (March 11, 2010) Paul, Hastings, Janofsky & Walker LLP, a leading global law firm, is pleased to announce that it has advised the Export-Import Bank of Korea (Korea Eximbank), Asian Development Bank (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Crédit Agricole Corporate and Investment Bank (Crédit Agricole) and ING Bank N.V. (ING) in relation to the US$270 million financing of a 200 megawatt coal-fired power project in Cebu, Philippines. The project is being developed by the Kepco SPC Power Corp. (KSPC), a joint venture between Korea Electric Power Corp. and SPC Power Corp., and is valued at US$451 million.
The Paul Hastings team on the transaction consisted of lawyers from across its offices in Asia, the U.K. and the U.S. and was co-led by partners Joseph Kim and Patricia Tan Openshaw assisted by partners Joshua Isenberg, Norman Futami and Laurence Skinner and associates Cristina Uy-Tioco, Spencer Barrowes, Juliet Taylor, Giancarlo Sambalido, John Chi, Warrick Price and Sung-Soo Shin.
Joseph Kim, partner in the Paul Hastings office in Tokyo, commented: The Cebu Power Project marks the first ever internationally financed merchant power project in the Philippines and we are delighted to have advised Korea Eximbank, ADB, SMBC, Crédit Agricole and ING as lenders in this landmark transaction.
"As well as being the first merchant power project in the Philippines to be financed entirely by international lenders, and particularly by international commercial banks, this project will be a very welcome development to alleviate the current power shortage in the Visayas," added Patricia Tan Openshaw, partner in the Paul Hastings office in Hong Kong.
The new 200 megawatt power project will use circulating fluidized bed combustion boilers, the best technology available for power plants of this size. This is in line with ADBs energy policy of helping Asia secure adequate power supply while promoting cleaner power generation.
The first 100 megawatt unit is scheduled to come on line in February 2011 and the next 100 megawatt unit in May 2011. KSPC will sell power from the project primarily to electricity cooperatives and distribution utlilities on Cebu and Negros islands, and to the proposed Wholesale Electricity Spot Market in the Visayas.
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