Shearman & Sterling represented the Central American Bank for Economic Integration (“CABEI”) as a joint lead arranger and the syndication agent in the $350 million senior secured project financing construction facility for the 300 MW Project Jaguar solid fuel-fired power plant, to be located approximately 25 km north of the Pacific coast port of Puerto Quetzal in Guatemala.

The Jaguar power plant will sell 200 MW of its capacity and energy under two separate 15-year power purchase agreements entered into in 2008 Distribuidora de Electricidad de Occidente S.A. and Distribuidora de Electricidad de Oriente S.A., respectively. The offtakers are distribution companies owned by Unión Fenosa. Excess power and capacity will be sold in Guatemala and other regional markets on a merchant basis. The construction contractor, China Machine New Energy Corporation, is providing vendor financing in an amount up to $200 million.

The principal Shearman & Sterling attorneys who worked on this matter were partner Gregory Tan (New York-Project Development & Finance) and associates Abigail Berry (New York-Project Development & Finance) and Christian Gloger (New York-Project Development & Finance).