Ashurst advised the funders on the successful development and financing, by a consortium of Korea Electric Power Corporation (KEPCO), Mitsubishi Corporation and Wartsila, of the approximately US$ 800 million IPP3 independent power project in the Hashemite Kingdom of Jordan, which reached financial close on 7 March 2013. Ashurst acted as international legal counsel to the ECAs, The Export-Import Bank of Korea (K-EXIM), Nippon Export and Investment Insurance (NEXI) and the commercial lenders, The Bank of Tokyo-Mitsubishi UFJ Ltd., KfW IPEX-Bank GmbH, Mizuho Corporate Bank Ltd, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.
The project involves the development and construction of a 570 MW power plant at Almanakher in Jordan. The plant, using Wartsila diesel engine generators, is capable of running both on heavy fuel oil and gas and will be the world’s largest power plant using reciprocating engine technology. The project company, Amman Asia Electric Power, will make available the plant’s capacity and output to the National Electric Power Company of Jordan (NEPCO) under a 25 year power purchase agreement.
The Ashurst team was led by energy partner David Wadham with support from partner James Coiley on the hedging aspects, assisted by counsels Mhairi Garcia and Ian Fairclough, senior associate Mohamed Nacim Bounouara and associates, Alex Bartho, Alex Jeffrey and Robin Watson. SNR Denton advised the sponsors and Ali Sharif Zu’bi acted as the lenders’ Jordanian counsel.
Commenting on the deal, David Wadham said:
“We are delighted to have successfully closed another IPP project in the Middle East, working with a number of lenders on such a significant project to the Kingdom of Jordan. This flexible plant will serve to meet Jordan’s increasing power demand and will therefore play an important role in maintaining Jordan’s continuing industrial and economic growth.”
