SAUDI ARABIA – Chadbourne’s powerful project

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 is only the third of its type and the largest independent power project in the world. 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 in 2014. It represents another major development by the Saudi power sector to help meet the rapidly increasing power demand in Saudi Arabia.The team included partner Agnieszka Klich and associate Ali Donat from the London office, and Dubai associates Mark Norman and Derek Kirton.