London, June 15, 2007—Shearman & Sterling has been appointed by CIC Energy and International Power to advise the lenders on the $5.5 billion 3,600 MW Mmamabula coal-fired power and mining project. 

Mmamabula is one of the largest and most ambitious Independent Power Projects to be developed in Africa to date.  The Project will be built on top of the largest untapped coal reserves in Botswana with enough coal to support the Project for at least 40 years.  It is ideally located near the South African border and just 60km from the South African grid allowing it the flexibility to sell energy into both the Botswanan and South African markets.

The project will be split into two phases, the first of which includes the development of a 2400MW coal-fired power plant and the development of the associated coal field.  The current plan is for the project debt to be raised entirely in Rand.

Commenting on the deal Shearman & Sterling partner Nick Buckworth said:  “This is exactly the sort of deal Shearman & Sterling is focused on: a complex project in a new jurisdiction demanding sector experience,  common sense and the co-operation of all involved.  We are all very much looking forward to helping make this Project a great success.”

The Shearman & Sterling team also includes counsel Gregor Page (London - Project Development & Finance) and associate Anna Chung (London - Project Development & Finance).