Written by John on 28 August 2015.
♦ Uncategorized ♦ Mongolia
Shearman & Sterling is advising a consortium comprising GDF Suez, POSCO Energy, Sojitz Corporation and Newcom in relation to all aspects of the development of the CHP5 IPP, a greenfield coal-fired combined heat and power plant in Ulaanbaatar in Mongolia with an electrical capacity of up to 450MWe and heat capacity up to 587MWt. The four banks mandated by the sponsors for the financing are Credit Agricole, HSBC, Sumitomo Mitsui Banking Corporation and Bank of Tokyo Mitsubishi-UFJ. This is the first IPP project in Mongolia being developed under the PPP program and which will be internationally financed on a limited-recourse basis. The project has been designated as a key project to be “fast-tracked” due to the increasingly severe shortage of heat and power in Ulaanbaatar. The Shearman & Sterling Singapore Project Development & Finance team included partner Bill McCormack, counsel Scott Baggett and associate Vincent Seah.
Written by John on 30 August 2013.
♦ Breaking BigLaw News ♦ Mongolia, Ulaanbaatar
On November 7 2012, a proposal to set up an office in Mongolia was approved at the forty-eighth gathering of Dacheng management committee, which also designated senior partner Lu Hada to lead and coordinate the establishment of the office. After months of intense preparation, Dacheng Mongolian Office, registered No. 9011256017, was officially launched on May 20, 2013. The newly established office is located at 7/F Peace Mansion, No.54 Peace Road, Chingeltei District, Ulaanbaatar, Mongolia. Mongolia is one of the world’s most resourceful, fastest-growing countries with active inflow of foreign investment. It is also one of the most important economies bordering China. The strengthened bilateral ties between China and Mongolia have brought a bright prospect for economic cooperation. The timely establishment of the office will not only expand Dacheng’s global legal service network to Mongolia and create favorable conditions for businesses in both countries, but will also create a channel for enhancing mutual benefit and trust as well as reinforcing exchanges and cooperation in the legal profession.
Written by John on 31 July 2012.
♦ Recent Deals ♦ Mongolia, Ulaanbaatar
Hogan Lovells advised General Electric ("GE") on the financing and equity aspects of a US$122 million 50MW wind farm in Salkhit, Mongolia, the first renewable energy independent power project in Mongolia. The 50MW wind farm is located 70km southeast of the Mongolian capital Ulaanbaatar and is part of a renewable energy programme intended to reduce the country’s dependence on coal. The project, which is expected to become operational in 2012, will supply almost 5% of Mongolia’s electricity. The project is being developed and sponsored by Mongolia-based Newcom LLC, which retains a majority interest in the Mongolian project company, Clean Energy LLC. GE Pacific Private Limited acquired an equity interest in Clean Energy LLC in March 2012 and debt financing for the project closed in July 2012. Hogan Lovells' role included drafting and revising Mongolian law-governed transaction documents, review of financing agreements, issuing legal opinions, and advising on applicable legislation and general matters of Mongolian law. The cross-border team advising GE was led by Michael Aldrich, managing partner of the Ulaanbaatar office, and included partners Jamie Barr and senior associate Laurence Davidson in Hong Kong, partner James Harris and senior associate Lawrence Low in Singapore, and partner Chris Melville, senior associate Anthony Woolley and associate Solongoo Bayarsaikhan in Ulaanbaatar. Commenting on the transaction, Ulaanbaatar office managing partner Michael Aldrich said: "We have a long-standing relationship with GE in the USA and across our international network and we are pleased to augment this relationship with our capabilities in Mongolia. We have extensively advised clients on their energy projects in Asia, establishing a prominent reputation for ourselves as a trusted advisor in the region. Representing GE on this landmark transaction further reinforces our position as the leading international firm based in Mongolia."
Written by John on 20 July 2012.
♦ Recent Deals ♦ Beijing, Mongolia, Sydney
The London, Beijing and Sydney offices of international legal practice Norton Rose Group have advised the European Bank for Reconstruction and Development (EBRD) and the Netherlands Development Finance Company (FMO) on their US$85 million debt financing of Mongolia’s first renewable energy independent power project. The project reached financial close on 17 July 2012. The 50MW Salkhit wind farm is located 70km south east of the Mongolian capital Ulaanbaatar and is part of a renewable energy programme intended to reduce the country’s dependence on coal. The project is expected to become operational in 2012. Once operational, the project is expected to supply almost 5 per cent. of Mongolia’s electricity, where energy demand is currently increasing by 8-10 per cent. per year. The project is also in the process of receiving Clean Development Mechanism accreditation and Norton Rose Group advised the lenders on securing the carbon revenues generated by the project. The project has been developed and sponsored by Mongolia’s Newcom LLC, which retains a majority interest in the Mongolian project company, Clean Energy LLC. EBRD and FMO, together with GE Pacific Private Limited, acquired equity interests in Clean Energy LLC in March 2012. Teams from across Norton Rose Group worked with the financiers, sponsors and suppliers to achieve a tight equity financing deadline which helped construction of the project to progress in Mongolia’s truncated summer construction season. Jeffery Barratt, partner, Norton Rose LLP, commented: “The project required us to field teams from our London, Beijing and Sydney offices, with our team in Sydney and our London-based New York lawyers brought in to advise as the project developed. This is another example of our ability to meet the needs of a transaction as it evolves by drawing on the expertise and experience of our lawyers throughout the Norton Rose Group. It reinforces the strength of our capability to close major first-in-country energy project financings.” “The project presented a number of interesting challenges for both the sponsor and the lenders but all parties worked closely together to get this deal over the line.” “Reaching financial close of this project is a significant milestone for Mongolia’s energy sector as it seeks to reduce reliance on fossil fuels. The project is likely to act as a template for further private sector interest in the country’s renewable sector and demonstrates the benefits that the Mongolian government has derived from putting in place a number of important legal and regulatory measures to support the development of renewable energy.” London based partner Jeffery Barratt led the transaction and advised EBRD and FMO on the financing of the project together with senior associate Chris Down and associate Christina MacGilp, with support from trainee solicitor Prakruthi Panchalingegowda. Associate Gemma Pike advised on carbon finance aspects of the transaction. Partner Richard Hill and associate Kate Freeman advised on the construction aspects of the projects and New York law security advice was provided by partner Tom Vita and associate Alex Hirshfeld. Sydney partner Dan Marjanovic advised on New South Wales security and tax law together with senior associates Tim Mornane and Claire Falkner. Beijing partner Tom Luckock advised the lenders on the due diligence aspects of the project. Mongolian law advice was provided to EBRD and FMO by GTs Advocates LLC.
Written by John on 09 February 2012.
♦ Recent Deals ♦ Mongolia
Hogan Lovells has advised Goldman Sachs Group Inc. on the Mongolian aspects of their purchase of a 4.8% equity stake in the Trade & Development Bank of Mongolia LLC. The Trade & Development Bank of Mongolia LLC, a major lender in the Mongolian market, is predicting an investment of US$68 billion within four years in new mines, roads and housing. Hogan Lovells was the first global law firm to establish a permanent presence in Mongolia and is advising on a number of significant foreign direct investment transactions and projects in the energy, mining and infrastructure sectors. The Hogan Lovells team which advised Goldman Sachs was led by Partner Michael Aldrich, along with associates Delgermaa Altantuya, Solongoo Bayarsaikhan and Nominchimeg Odsuren. Commenting on the transaction, Michael Aldrich, who leads Hogan Lovells' practice in Mongolia said: "This transaction is yet another example of the investment opportunities present in the Mongolian market. As the country builds the infrastructure needed to grow its mining and energy industries, we can expect to see further foreign investment."