Mourant Ozannes advises on first Chinese 'One Belt One Road' infrastructure development fund project
30 March 2017
Mourant Ozannes has advised Export-Import Bank of China, China Development Bank, Silk Road Fund and International Finance Corporation in connection with a US$1.392 billion facility which was the first infrastructure project to be announced under China's One Belt One Road infrastructure development fund.
The facility was provided to Karot Power Company (Private) Limited, a Pakistani incorporated subsidiary of China Three Gorges South Asia Investment Ltd, a company incorporated in the Cayman Islands. It will fund the construction of a 720-MW Karot hydropower project in Pakistan on the Jhelum River east of Islamabad and is expected to be commercially operational in 2021.
The project represents one of the three multistage hydropower projects in Pakistan being developed by China Three Gorges South Asia Investment Limited, an independent power company established by China Three Gorges Corporation, International Finance Corporation and Silk Road Fund, which was structured as a scalable investment platform to develop and own renewable power projects in Pakistan.
Mourant Ozannes Partner, Simon Lawrenson, said:
"Our dedicated offshore finance practice regularly advises on the most complex and high profile finance matters in the region. This transaction, which involved a range of cross border issues spanning China, Pakistan, Hong Kong and the Cayman Islands, is particularly noteworthy as part of China's 'One Belt, One Road' economic development initiative to increase global trade and regional connectivity."
The Mourant Ozannes team was led by Partner Simon Lawrenson with Associate Paul Trewartha, who worked alongside a range of international counsel including Shearman & Sterling, Shanghai.