International legal practice Norton Rose Group, has advised PT Wampu Electric Power on the development and project financing of a 45MW hydroelectric power project scheduled for completion in 2015 in North Sumatra, Indonesia. PT Wampu Electric Power is owned by Korea Midland Power Co. Ltd., POSCO Engineering Co. Ltd. and Indonesia’s PT Mega Power Mandiri.
With financing of more than US$130 million provided by Korea Eximbank and Sumitomo Mitsui Banking Corporation, power will ultimately be sold to Perusahaan Listrik Negara (PLN), the Indonesian state-owned power utility responsible for electricity distribution. The power project is clean development mechanism (CDM) certified under the United Nations Framework Convention on Climate Change, also known as the Kyoto Protocol.
Laurie Pearson, Of Counsel, Norton Rose (Asia) LLP in Singapore, commented:
“This was a highly complex transaction involving multi-jurisdictions and highlights Norton Rose’s energy capability and the ability to operate within a highly specialized area with experts sharing industry knowledge and sector expertise across borders.”
The North Sumatra facility will operate as a run-of-river project in a protected forest, and generate cost-effective energy in an area that is currently deprived of power.
“This is the first Indonesian power project to reach financial completion for over two years and represents another first with the involvement of the Korea Eximbank in a hydroelectric power project in Indonesia,” said Pearson.
The project is also the first private power project in Indonesia to reach financial close that benefits from a business viability guarantee letter issued by the Ministry of Finance, under regulations introduced in 2011.
Leading on all development matters in Singapore was Laurie Pearson, while Stephen Begley, partner, led on financing issues together with Juhae Chae, Daniel Yong, Hannah Logan, James Atkinson and Vanessa Chew. Also involved in the transaction were James Morgan-Payler, partner of Norton Rose Australia in Melbourne and Matthew Frazer together with Jakarta-based Ross Ramsay, Tissy Anandita, and Haryo Baskoro.
